Deere Current Valuation vs. Net Income

DE Stock  USD 439.48  8.55  1.91%   
Based on the measurements of profitability obtained from Deere's financial statements, Deere Company is yielding more profit at this time then in previous quarter. It has a moderate odds of reporting better profitability numbers in January. Profitability indicators assess Deere's ability to earn profits and add value for shareholders. At present, Deere's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 3.54, whereas Operating Cash Flow Sales Ratio is forecasted to decline to 0.18. At present, Deere's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Total Other Income Expense Net is expected to grow to about 2.5 B, whereas Net Interest Income is forecasted to decline to (2.3 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.320.3124
Fairly Up
Slightly volatile
Net Profit Margin0.140.1586
Fairly Down
Slightly volatile
Operating Profit Margin0.20.1531
Significantly Up
Slightly volatile
Pretax Profit Margin0.180.2057
Fairly Down
Slightly volatile
Return On Assets0.07090.0662
Notably Up
Slightly volatile
Return On Equity0.320.3109
Fairly Up
Slightly volatile
For Deere profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Deere to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Deere Company utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Deere's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Deere Company over time as well as its relative position and ranking within its peers.
  
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Is Agricultural & Farm Machinery space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Deere. If investors know Deere will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Deere listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.38)
Earnings Share
25.62
Revenue Per Share
200.394
Quarterly Revenue Growth
(0.17)
Return On Assets
0.0786
The market value of Deere Company is measured differently than its book value, which is the value of Deere that is recorded on the company's balance sheet. Investors also form their own opinion of Deere's value that differs from its market value or its book value, called intrinsic value, which is Deere's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Deere's market value can be influenced by many factors that don't directly affect Deere's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Deere's value and its price as these two are different measures arrived at by different means. Investors typically determine if Deere is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Deere's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Deere Company Net Income vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Deere's current stock value. Our valuation model uses many indicators to compare Deere value to that of its competitors to determine the firm's financial worth.
Deere Company is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in net income category among its peers making up about  0.04  of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Deere Company is roughly  24.92 . At present, Deere's Net Income is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Deere by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Deere Current Valuation vs. Competition

Deere Company is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 186.58 Billion. Deere totals roughly 176.6 Billion in current valuation claiming about 95% of equities under Industrials industry.

Deere Net Income vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Deere

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
176.6 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Deere

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
7.09 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Deere Net Income Comparison

Deere is currently under evaluation in net income category among its peers.

Deere Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Deere, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Deere will eventually generate negative long term returns. The profitability progress is the general direction of Deere's change in net profit over the period of time. It can combine multiple indicators of Deere, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-3.7 B-3.9 B
Operating Income6.9 B7.2 B
Income Before Tax9.2 B9.7 B
Total Other Income Expense Net2.4 B2.5 B
Net Income7.1 B7.4 B
Income Tax Expense2.1 B2.2 B
Net Income Applicable To Common Shares11.7 B12.3 B
Net Income From Continuing Ops11.7 B12.3 B
Non Operating Income Net Other11.5 M12.1 M
Interest Income846.4 M1.1 B
Net Interest Income-2.2 B-2.3 B
Change To Netincome-219.6 M-208.6 M
Net Income Per Share 25.72  19.14 
Income Quality 1.30  1.30 
Net Income Per E B T 0.77  0.78 

Deere Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Deere. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Deere position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Deere's important profitability drivers and their relationship over time.

Use Deere in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Deere position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Deere will appreciate offsetting losses from the drop in the long position's value.

Deere Pair Trading

Deere Company Pair Trading Analysis

The ability to find closely correlated positions to Deere could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Deere when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Deere - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Deere Company to buy it.
The correlation of Deere is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Deere moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Deere Company moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Deere can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Deere position

In addition to having Deere in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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To fully project Deere's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Deere Company at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Deere's income statement, its balance sheet, and the statement of cash flows.
Potential Deere investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Deere investors may work on each financial statement separately, they are all related. The changes in Deere's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Deere's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.