Is Deere Stock Outperforming Its Rivals?

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Deere

Deere‘s stock has posted a modest 3% return over the past year, significantly lagging robust peers. A closer look, as of November 26, 2025, reveals strong operating profitability and solid free cash flow generation. However, it faces substantial revenue contraction for the full fiscal year 2025 and a cautious outlook for fiscal 2026, particularly in large agriculture, with expectations of a revenue drop and persistent margin pressures from tariffs and production costs. Its moderate valuation reflects these mixed signals, suggesting limited near-term upside amidst challenging market headwinds.

  • DE’s 20.0% operating margin is strong, higher than most peers, but lower than ALSN (30.8%) due to ALSN’s specialized transmission business model.
  • DE’s -20.9% LTM revenue growth lags peers, reflecting a large agriculture sector downturn, tariffs, and deliberate inventory reduction.
  • DE’s 3.3% stock gain and 24.4 PE reflect agricultural cycle headwinds and tariffs, with peers outperforming, yet it appears undervalued long-term.

Here’s how Deere stacks up across size, valuation, and profitability versus key peers.

  DE CAT ALSN TEX ASTE
Market Cap ($ Bil) 127.2 269.5 7.5 3.0 1.0
Revenue ($ Bil) 43.4 63.1 3.1 5.3 1.4
PE Ratio 24.4 28.6 10.8 19.2 21.0
LTM Revenue Growth -20.9% -4.9% -4.2% 4.6% 6.7%
LTM Operating Margin 20.0% 18.2% 30.8% 7.3% 5.7%
LTM FCF Margin 9.4% 12.3% 20.5% 5.2% 3.3%
12M Market Return 3.3% 42.8% -24.3% -14.4% 16.4%

For more details on Deere, read Buy or Sell DE Stock. Below we compare DE’s growth, margin, and valuation with peers across years

Revenue Growth Comparison

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  LTM 2024 2023 2022
DE -20.9% -16.1% 17.5% 19.2%
CAT -4.9% -3.4% 12.8% 16.6%
ALSN -4.2% 6.3% 9.6% 15.3%
TEX 4.6% -0.5% 16.6% 13.7%
ASTE 6.7% -2.5% 5.0% 16.3%

Operating Margin Comparison

  LTM 2024 2023 2022
DE 20.0% 22.6% 24.2% 17.6%
CAT 18.2% 20.2% 19.3% 14.9%
ALSN 30.8% 30.8% 30.3% 28.3%
TEX 7.3% 10.3% 12.4% 9.5%
ASTE 5.7% 4.0% 4.1% 1.3%

PE Ratio Comparison

  LTM 2024 2023 2022
DE 24.4 16.5 11.5 18.3
CAT 28.6 16.4 14.6 18.8
ALSN 10.8 12.9 7.8 7.5
TEX 19.2 9.2 7.5 9.8
ASTE 21.0 178.2 25.2 -9266.7

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