Deere & Co. (DE)-Significant slowdown in certain segments

Deere & Co. (DE) Q2FY23

Introduction

Deere & Company is engaged in the delivery of agricultural, construction, and forestry equipment. The Company’s Production & precision agriculture segment develops and delivers global equipment and technology solutions to growers of large grains, small grains, cotton, and sugarcane. The Small agriculture & turf segment develops and delivers global equipment and technology solutions to dairy and livestock producers, high-value crop producers, and turf and utility customers.

The Construction and Forestry segment develops and delivers a range of machines and technology solutions organized along the earthmoving, forestry, and roadbuilding production systems. The Financial Services segment finances sales and leases by John Deere dealers of new and used production and precision agriculture equipment, small agriculture and turf equipment and construction and forestry equipment. Its technology-enabled products include John Deere Autonomous 8R Tractor, See & Spray and E-Power Backhoe.

Highlights

Better margins: In Production & Precision Ag business, net sales was $7.8bn, up 53% Y/Y, primarily due to increased shipment volumes and price realization.

Stock performance

Over the past 3 years, Deere & Co generated returns of 146% where the stock price surged from $176 in Jul 27, 2020 to $432.95 in Jul 26, 2023. The stock had a 200-Day Moving Average of $403.61 and a 50-Day Moving Average of $395.07.

In the past 1 year, DE delivered returns of 28% where the stock price increased from $338.19 in Aug 01, 2022 to $432.95 in Jul 26, 2023.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 36

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