Summary: On Sale
This is a step-by-step stock review to answer the question, is Deere & Company (DE) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Deere & Company (DE) stock a good buy?
- Deere & Company Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Deere & Company (DE) stock a good buy?
1. Deere & Company (DE) Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 1837 by blacksmith John Deere in Grand Detour, Illinois.
- Invented the self-scouring steel plow, changing farming.
- Moved to Moline, Illinois in 1848, becoming a major manufacturing center.
- Expanded to make tractors, combines, and more farm tools.
- Went public in 1923, listed on the New York Stock Exchange as DE.
- Pioneered precision farming with GPS and smart technology.
- Operates in over 30 countries with many dealers.
- Acquired companies like Wirtgen Group and Blue River Technology.
- Expanded into construction, forestry, and turf care equipment.
- Commits to sustainable farming and reducing environmental impact.
- Ranked highly in manufacturing and agriculture.
- Invests in education, communities, and farming innovation.
- Mission: Provide innovative products and services for customer success.
- Vision: Lead in agriculture and construction with innovation and sustainability.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: watch
- Score: 78/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Deere & Company (DE) makes money:
- Equipment Sales: Deere & Company makes money by selling agricultural, construction, and forestry equipment like tractors, harvesters, and excavators.
- Parts and Services: Generates revenue from selling replacement parts and providing maintenance services for its equipment.
- Financial Services: Offers financing solutions for equipment purchases, earning interest and fees from loans and leases.
- Technology Solutions: Sells precision agriculture technology and software that help farmers improve efficiency and productivity.
- Leasing and Rentals: Earns money by leasing and renting equipment to customers who prefer not to purchase outright.
- Aftermarket Support: Provides aftermarket products and services, including extended warranties and support packages.
- Engine and Powertrain Sales: Manufactures and sells engines and powertrain components to other equipment manufacturers.
- Licensing: Gains revenue from licensing its brand and technology to other companies.
- Consulting Services: Offers consulting services to help businesses optimize their agricultural and construction operations.
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Deere & Company (DE) stacks up against other companies.
- Terex Corporation. (TEX) – 89
- AGCO Corporation. (AGCO) – 89
- Deere & Company. (DE) – 78
- Hyster-Yale Materials Handling, Inc. (HY)- – 78
- Wabash National Corporation. (WNC) – 67
- Oshkosh Corporation. (OSK) – 50
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- CEO Appointment: John C. May was appointed CEO of Deere & Company in 2019, becoming the 10th person to lead the company.
- Digital Transformation: He spearheaded the company’s digital transformation, integrating advanced technology like AI, IoT, and automation into Deere’s agricultural equipment.
- Precision Agriculture: May focused on precision agriculture, enhancing the efficiency and productivity of farming through data-driven solutions.
- Sustainable Practices: Under his leadership, Deere & Company increased its commitment to sustainability, developing eco-friendly products and practices.
- Operational Efficiency: He improved operational efficiency within the company, optimizing production processes and supply chain management.
- Global Expansion: May expanded Deere & Company’s global footprint, increasing its presence in international markets.
- Financial Performance: He maintained strong financial performance, navigating the company through economic challenges and market fluctuations.
- Innovation in Equipment: May oversaw the development of innovative agricultural machinery, including autonomous tractors and advanced harvesting equipment.
- Customer Focus: He prioritized customer satisfaction, ensuring that Deere’s products and services met the evolving needs of farmers and other customers.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Deere & Company (DE) is 79/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Deere & Company (DE) stock a good buy?
Some of the top questions investors can have is Deere & Company (DE) stock a good buy or should I buy Deere & Company (DE)?
Deere & Company, known for its iconic John Deere brand, is a strong investment choice. It is a leader in agricultural machinery, construction equipment, and forestry technology, essential industries with consistent demand. Deere’s commitment to innovation is evident in its advancements in precision agriculture and automation, driving efficiency and productivity for farmers.
Financially, Deere & Company has a solid track record of revenue growth, profitability, and dividend payments, making it attractive for long-term investors. The company’s global presence and diversified product line further enhance its resilience and market reach.
However, investors should consider potential risks such as economic downturns, fluctuating commodity prices, and supply chain challenges, which can impact performance. Despite these risks, Deere’s strong brand, innovative products, and robust financial health position it as a promising investment for those seeking stability and growth in the industrial sector.
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To truly know if Deere & Company is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
If you found this stock review interesting, you may also like this review on Fortinet.