Company Research | John Deere

November 30, 2023by Anton Tryhubchenko

Today, we’re going to talk about John Deere, which has demonstrated one of the best results among the companies that published financial statements last week.

John Deere published its latest report on 22 November. Manufacturing costs make up 61% of the revenue structure, and gross revenues make up 39%. In the last quarter, the company made a profit of $2.3B. Market capitalization is now $106B.

John Deere is one of the world’s largest manufacturers of agricultural, construction and forestry equipment. The demand for their tractors and combines is growing every year.

The company operates in the machinery industry. It was founded in 1837. In 1957, it went public on the NYSE and was included in the S&P 500 index the same year. For the past 4 years, the company has been led by John May and a team of qualified managers.

The main competitors of John Deere are Caterpillar, Cummins and Nordson. As you can see from the table above, some of them are ahead of John Deere in terms of capitalization, but the company has a number of competitive advantages.

John Deere’s strengths are based on a combination of innovation and experience. The company accounts for 40% of the total number of agricultural machinery connected to the satellite network worldwide. John Deere has also developed the Leap Ambitions Framework programme, which allows it to cultivate more than 300M acres of farmland with minimal human intervention.

Over the past 3 months, John Deere stocks have fallen by -6.1%. At the same time, the industrial sector, to which the company is a part, has risen by +0.3%, and the S&P 500 index by +2.7%. As you can see, John Deere shares are underperforming the sector average.
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