DEDeere & Company
Is the business good?
The checks split: earnings fully cash-backed (1.5×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 18% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DE?
Deere & Company earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.4 points above what the capital costs: growth creates value
- Operating margin
- 13%
Operating margin · Farm & Heavy Construction Machinery median 5.1% · 12 months to Q3 2026
- Cash conversion
- 1.50×
Cash conversion · 1.65× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.26%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 18% |
| FY2022 | 18% |
| FY2023 | 21% |
| FY2024 | 17% |
| FY2025 | 14% |
Details›
- Operating margin12 months to Q3 2026
- 13%
- Net margin12 months to Q3 2026
- 10%
- Free cash flow margin
- 13%
- R&D as % of revenue
- 5.0%
- Revenue, trailing twelve months
- $48.0B
- Free cash flow, trailing twelve months
- $6.02B
- Net income, trailing twelve months
- $4.87B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Farm & Heavy Construction Machinery
The closest names by size in the same industry