Food technology

Five stock picks in new agriculture and food technologies

Highlights
Market capitalisation $118 billion Price $383
52 week high/low $447 / $321 Return on capital employed 13.7%
Forward price-earnings 16 Forward dividend yield 1.1%
CAGR EPS 5 years 31.6% EPS change expected at 3 months 6.6%

Price-to-earnings ratio, EPS growth and dividend yield based on 12-month forecast earnings
EPS = earnings per share; CAGR = compound annual growth rate
Source: FactSet, adjusted earnings figures, data as of May 6, 2022

While he’s known for his gigantic green and yellow tractors and combines, there’s a lot more going on at Deere & Co.

Founded in Illinois in 1837 by John Deere, a blacksmith who developed a plow that helped local farmers get more movement out of their sticky soil, the modern company manufactures a wide range of equipment used in construction, forestry and gardening, in addition to agriculture.

In addition to excavators, dumpers, loggers and lawn mowers, it manufactures engines, excavators, power electronics and even motorized scrapers for golf course bunker sand, among many other products. which it sells through an international network of resellers.

Deere & Co, which has been listed on the New York Stock Exchange since 1978, also has its own financial arm and provides spare parts and services.

Needless to say, advancements in technology have left their mark on every part of this business. There are the convenient features of a click-and-collect ordering service, a digital spare parts catalog and technology-driven diagnostic and repair services, for example.

However, Deere & Co’s equipment has also made tremendous progress, which is at the forefront of technological advancements in its markets. Its precision farming kit, for example, gives farmers more control over how they till, sow and harvest, improving their crop yields, reducing fuel consumption and making the whole process more efficient. and sustainable.

Source: Citywire/Morningstar, latest shareholding data disclosed