Deere & Company (NYSE:DE)
CAPS Rating:
The Company operates in 4 segments: agricultural equipment segment, commercial and consumer equipment segment, construction and forestry segment, and credit segment.
The Company operates in 4 segments: agricultural equipment segment, commercial and consumer equipment segment, construction and forestry segment, and credit segment.
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Recs
- 65% of the revenue and 80% of operating income comes out of US and Canada- US population in the last decade grew only around 26MM. Far lower than 90s and 80s rate of about 50MM.- In spite of a lower growth rate in population and disastrous stock market and economy, DE grew its sales from 11 to 26B and improved its EPS by 4 times. (Acquisitions may have something to do with sales growth to some extent)- Stock returned 15% per year for last 10 yearsI believe in reversion to the mean. US population growth is not going to slowdown.There are three main reasons I like it.a - looks very profitable.b - good international exposurec - i am bullish on the US economy over next 10 years in spite of all problems which I believe; will get resolved.