Deere: services revenue is compounding under a cyclical label
The installed base generates recurring revenue that the cycle does not touch, and it has grown every year for a decade.
Unlock the full report
The locked call and the disclosures stay visible. The research body unlocks with purchase or subscription.
Discussion · 6
Good piece. The installed base argument is stronger than the cycle argument here. Does the same logic apply to the closest comparable?
Been long since the last one. The destocking signature is textbook and nobody is naming it. Would you underwrite this without the catalyst date?
Not convinced, but well argued. The utilisation assumption is where I disagree. Where does this break if rates back up another 50bp?
This is the second-order point everyone skips. The exclusivity window is the part the market keeps mispricing. Has anything in the last print changed the entry you would take?
I have been waiting for someone to make this argument. The depreciation schedule really is the whole disagreement. What is the base rate on this kind of setup working?
Reading this against my own model. The point about conversion rather than demand is the right one. What is the level where you would walk away?