Deere Intrinsic Value Calculator – DEERE Reports Earnings Results for Q2 FY2023, Ending April 30 2023.
May 23, 2023
Earnings Overview
On May 19 2023, DEERE ($NYSE:DE) reported its financial results for the second quarter of fiscal year 2023, which ended on April 30 2023. The total revenue had grown by 30.1% compared to the same period in the previous year, and reached USD 17.4 billion. Furthermore, the net income had increased by 36.2%, amounting to USD 2.9 billion.
Share Price
On Friday, agricultural and construction equipment manufacturer DEERE reported its earnings results for the second quarter of Fiscal Year 2023, which ended on April 30, 2023. The stock opened at $390.8 and closed at $363.6, representing a decline of 1.9% from its last closing price of $370.5. DEERE reported strong growth across its construction and forestry segment, with a 15% increase in year-over-year revenue driven by higher demand for its products. The agriculture and turf segment also saw an increase of 17%, with higher sales across all regions.
DEERE’s encouraging results were buoyed by an improving global economy, increased demand for its product offerings and successful cost control initiatives. Going forward, the company expects to benefit from favorable market conditions and remain committed to creating value for its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Deere. DEERE_Reports_Earnings_Results_for_Q2_FY2023_Ending_April_30_2023.”>More…
| Total Revenues | Net Income | Net Margin |
| 58.95k | 8.95k | 14.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Deere. DEERE_Reports_Earnings_Results_for_Q2_FY2023_Ending_April_30_2023.”>More…
| Operations | Investing | Financing |
| 6.31k | -8.09k | 3.23k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Deere. DEERE_Reports_Earnings_Results_for_Q2_FY2023_Ending_April_30_2023.”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 98.35k | 75.85k | 71.99 |
Key Ratios Snapshot
Some of the financial key ratios for Deere are shown below. DEERE_Reports_Earnings_Results_for_Q2_FY2023_Ending_April_30_2023.”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.3% | 39.6% | 22.8% |
| FCF Margin | ROE | ROA |
| 3.5% | 38.5% | 8.6% |
Analysis – Deere Intrinsic Value Calculator
At GoodWhale, we recently conducted a financial analysis of DEERE. After careful consideration of the company’s fundamentals, we determined the intrinsic value of DEERE’s share to be around $426.5 using our proprietary Valuation Line. This shows that DEERE is currently being traded at a fair price, $363.6, but is undervalued by 14.7%. We believe this is a great opportunity for investors to get in early and capitalize on the potential upside of DEERE stock. More…
Peers
Deere & Co. is an American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment. In 2018, it was listed as 87th in the Fortune 500 America’s ranking and was ranked 329th in the global ranking. The company also provides financial services and other related activities. Deere & Co.’s main competitors are CNH Industrial NV, Caterpillar Inc, Hitachi Construction Machinery Co Ltd.
– CNH Industrial NV ($NYSE:CNHI)
CNHI is a world leader in the design and manufacture of agricultural and construction equipment. The company has a market cap of 17.03B as of 2022 and a ROE of 29.84%. CNHI produces some of the world’s most recognizable brands, including Case IH, New Holland, and Steyr. The company’s products are used in a variety of applications, including farming, construction, and landscaping.
– Caterpillar Inc ($NYSE:CAT)
Caterpillar Inc. is a publicly traded company with a market capitalization of 96.9 billion as of 2022. The company designs, manufactures, markets and sells machinery and engines used in construction, mining, and forestry applications worldwide. Caterpillar’s return on equity was 33.83% as of 2022.
Caterpillar is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company also serves the defense, rail, and power generation industries. Caterpillar employs more than 130,000 people worldwide and operates in more than 200 countries.
– Hitachi Construction Machinery Co Ltd ($TSE:6305)
Hitachi Construction Machinery Co Ltd has a market cap of 574.79B as of 2022, a Return on Equity of 13.19%. The company is engaged in the manufacturing and selling of construction and mining equipment, as well as other related products and services. The company has a strong presence in Japan and Asia, and is expanding its operations globally.
Summary
Investors in DEERE can be pleased with the company’s second quarter of Financial Year 2023, which saw a strong increase in revenue and net income. Total revenue was up 30.1% to USD 17.4 billion, while net income rose 36.2% to USD 2.9 billion. These results demonstrate DEERE’s resilience in a challenging economic environment and are a testament to the company’s solid business model. With these figures, DEERE is well placed to further benefit from the current market conditions and continued growth in the future.
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