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Deere (NYSE:DE) Shows Strong Potential for Growth

Finding a business with significant growth potential can be a challenging task, but it is not impossible. One approach is to analyze a company’s returns on capital employed (ROCE) along with its capital employed. Deere, a leading agricultural machinery manufacturer, exhibits promising trends in these key financial metrics.

ROCE measures the return a company generates from the capital employed in its business. Deere’s ROCE sits at an impressive 25%, surpassing the industry average of 12%. This signifies that the company is utilizing its capital efficiently to generate profits.

In the past five years, Deere has experienced substantial growth in returns on capital employed. The company is now making more money per dollar of capital used, and the amount of capital employed has also increased by 40%. These figures indicate Deere’s ability to reinvest capital profitably and fuel its growth.

Investors have recognized these positive changes, evident in the stock’s remarkable 158% return over the past five years. This emphasizes the importance of high returns on capital for a company’s overall performance.

To determine whether these trends will continue, it would be worthwhile to explore forecasts and monitor the company’s future performance closely.

While Deere shows great potential, it is essential to consider potential risks. Our analysis has identified two warning signs that investors should be aware of.

To gain more insight into companies with high returns on equity and strong balance sheets, we offer a free list of stocks worth exploring.

Valuation is a complex undertaking, but our comprehensive analysis of Deere provides fair value estimates, risk assessment, dividend analysis, insider transactions, and insight into the company’s financial health.

Please note that the information presented in this article is for general purposes only and should not be considered financial advice. It is important to conduct further research and take into account your personal objectives and financial situation before making any investment decisions.

FAQ:

1. What is Deere?
Deere is a leading agricultural machinery manufacturer.

2. What does ROCE stand for?
ROCE stands for returns on capital employed.

3. What is the industry average for ROCE?
The industry average for ROCE is 12%.

4. How does Deere’s ROCE compare to the industry average?
Deere’s ROCE is at an impressive 25%, surpassing the industry average.

5. What does a high ROCE indicate?
A high ROCE indicates that a company is utilizing its capital efficiently to generate profits.

6. How has Deere’s returns on capital employed changed in the past five years?
Deere has experienced substantial growth in returns on capital employed in the past five years.

7. Has the amount of capital employed by Deere increased?
Yes, the amount of capital employed by Deere has increased by 40% in the past five years.

8. What is the stock’s return on Deere over the past five years?
The stock’s return on Deere over the past five years is a remarkable 158%.

9. What should investors consider when assessing Deere’s future performance?
Investors should explore forecasts and closely monitor Deere’s future performance.

10. What are the potential risks associated with investing in Deere?
The article mentions that there are two warning signs that investors should be aware of, but does not specify what they are.

11. Are there other companies with high returns on equity and strong balance sheets worth exploring?
Yes, there is a free list of stocks worth exploring for more insight into companies with high returns on equity and strong balance sheets.

12. What information does the comprehensive analysis of Deere provide?
The comprehensive analysis of Deere provides fair value estimates, risk assessment, dividend analysis, insider transactions, and insight into the company’s financial health.

Definitions:

– Returns on capital employed (ROCE): A financial ratio that measures the return a company generates from the capital employed in its business.

Related links:
Deere (official website)