Deere Intrinsic Value – DEERE Reports Record Third Quarter Earnings with 12.2% Revenue Increase and 58.5% Net Income Growth

August 20, 2023

☀️Earnings Overview

On August 18, 2023, DEERE ($NYSE:DE) reported its financial results for the third quarter of FY2023 (ending July 31, 2023), with total revenue of USD 15.5 billion, representing a 12.2% increase from the same period in the prior year, and net income of USD 3.0 billion, a year-over-year increase of 58.5%.

Analysis – Deere Intrinsic Value

GoodWhale has conducted an in-depth analysis of the financials of DEERE, and concluded that the intrinsic value of DEERE share is around $474.0. This was calculated using GoodWhale’s proprietary Valuation Line. This could be an attractive buying opportunity for investors looking for stocks with potential growth potential. Investing in DEERE could provide potential investors with a good return and could help diversify their portfolio. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • About the Company

  • DEERE_Reports_Record_Third_Quarter_Earnings_with_12.2_Revenue_Increase_and_58.5_Net_Income_Growth”>Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Deere. DEERE_Reports_Record_Third_Quarter_Earnings_with_12.2_Revenue_Increase_and_58.5_Net_Income_Growth”>More…

    Total Revenues Net Income Net Margin
    60.37k 10.04k 15.9%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Deere. DEERE_Reports_Record_Third_Quarter_Earnings_with_12.2_Revenue_Increase_and_58.5_Net_Income_Growth”>More…

    Operations Investing Financing
    7.18k -8.62k 3.69k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Deere. DEERE_Reports_Record_Third_Quarter_Earnings_with_12.2_Revenue_Increase_and_58.5_Net_Income_Growth”>More…

    Total Assets Total Liabilities Book Value Per Share
    103.4k 80.25k 78.61
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Deere are shown below. DEERE_Reports_Record_Third_Quarter_Earnings_with_12.2_Revenue_Increase_and_58.5_Net_Income_Growth”>More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    20.1% 50.5% 24.6%
    FCF Margin ROE ROA
    4.7% 40.9% 9.0%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items

  • 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.


    Analyzing Deere‘s recent earnings report, the company recorded a total revenue of USD 15.5 billion for the third quarter of FY2023, representing a 12.2% increase from a year ago. Net income also increased by 58.5% to USD 3.0 billion year over year. Despite this positive news, the stock price dropped on the same day. Investors should consider Deere’s long-term prospects and current performance when considering an investment in the company.

    Analysts should focus on factors such as its market position, competitive advantages, and financial metrics such as cash flow, debt levels, and earnings growth prospects. With a robust performance in the last quarter and a positive outlook for the company going forward, Deere may be a good investment opportunity for investors who are confident in its future prospects.

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