FMP

FMP

Deere & Company's Strong Financial Performance Amid Market Challenges

  • Earnings Per Share (EPS) of $3.93, surpassing estimates and indicating strong profitability.
  • Revenue for the fiscal fourth quarter reached approximately $12.4 billion, exceeding expectations and reflecting robust sales performance.
  • The company's debt-to-equity ratio of approximately 2.65 shows a higher reliance on debt, but a current ratio of around 2.31 suggests strong liquidity.

Deere & Company (NYSE:DE), a leading manufacturer of agricultural, construction, and forestry machinery, is known for its iconic green and yellow equipment and has a strong presence in the global market. Competitors include Caterpillar and CNH Industrial, which also operate in the heavy machinery sector.

On November 26, 2025, DE reported earnings per share (EPS) of $3.93, surpassing the estimated $3.85. This performance indicates strong profitability, as highlighted by the company's ability to exceed Wall Street's expectations. Despite this, the stock is experiencing a decline, which may be influenced by other market factors.

Deere's revenue for the fiscal fourth quarter reached approximately $12.4 billion, exceeding the estimated $11.8 billion. This significant revenue growth reflects the company's robust sales performance. The price-to-sales ratio of about 3.10 suggests that investors value each dollar of sales highly, indicating confidence in the company's revenue-generating capabilities.

The company's financial health is further illustrated by its enterprise value to sales ratio of around 4.44, which shows the total valuation relative to sales. Additionally, the enterprise value to operating cash flow ratio of approximately 22.53 highlights the relationship between the company's valuation and its cash flow from operations, emphasizing its operational efficiency.

Deere's debt-to-equity ratio of approximately 2.65 indicates a higher reliance on debt to finance its assets compared to equity. However, the current ratio of around 2.31 suggests that the company is well-positioned to cover its short-term liabilities with its short-term assets, reflecting a strong liquidity position.