Why is Deere & Co. ?
1
The company has declared Negative results for the last 4 consecutive quarters
- NET SALES(9M) At USD 33,291 MM has Grown at -17.95%
- NET PROFIT(HY) At USD 3,022.22 MM has Grown at -26.01%
- ROCE(HY) Lowest at 21.59%
2
With ROCE of 12.69%, it has a very expensive valuation with a 3.88 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 6.23%, its profits have fallen by -47.7%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Deere & Co. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Deere & Co.
11.51%
1.06
27.45%
S&P 500
11.09%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
4.46%
EBIT Growth (5y)
15.33%
EBIT to Interest (avg)
8.27
Debt to EBITDA (avg)
3.99
Net Debt to Equity (avg)
2.36
Sales to Capital Employed (avg)
0.63
Tax Ratio
20.25%
Dividend Payout Ratio
22.95%
Pledged Shares
0
Institutional Holding
76.07%
ROCE (avg)
15.14%
ROE (avg)
34.70%
Valuation Key Factors 
Factor
Value
P/E Ratio
49
Industry P/E
Price to Book Value
10.69
EV to EBIT
30.60
EV to EBITDA
25.29
EV to Capital Employed
3.88
EV to Sales
6.95
PEG Ratio
NA
Dividend Yield
0.70%
ROCE (Latest)
12.69%
ROE (Latest)
21.95%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
5What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 4.76
DIVIDEND PAYOUT RATIO(Y)
Highest at 34.11%
CASH AND EQV(HY)
Highest at USD 19,250 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 226.19 %
-10What is not working for the Company
NET SALES(9M)
At USD 33,291 MM has Grown at -17.95%
NET PROFIT(HY)
At USD 3,022.22 MM has Grown at -26.01%
ROCE(HY)
Lowest at 21.59%
RAW MATERIAL COST(Y)
Grown by 7.22% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.76 times
Here's what is working for Deere & Co.
Dividend per share
Highest at USD 4.76 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Cash and Eqv
Highest at USD 19,250 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 226.19 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 34.11%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 564 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Deere & Co.
Net Profit
At USD 3,022.22 MM has Grown at -26.01%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Net Sales
At USD 33,291 MM has Grown at -17.95%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Debtors Turnover Ratio
Lowest at 4.76 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 7.22% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






