CATERPILLAR INC (1CAT.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1CAT • US1491231015
538 EUR
-6 (-1.1%)
Last: Jan 23, 2026, 07:00 PM
Overall 1CAT gets a fundamental rating of 5 out of 10. We evaluated 1CAT against 111 industry peers in the Machinery industry. 1CAT scores excellent on profitability, but there are some minor concerns on its financial health. 1CAT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1CAT had positive earnings in the past year.
- In the past year 1CAT had a positive cash flow from operations.
- 1CAT had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1CAT had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1CAT (9.89%) is better than 87.39% of its industry peers.
- 1CAT has a better Return On Equity (44.89%) than 97.30% of its industry peers.
- 1CAT has a Return On Invested Capital of 16.47%. This is amongst the best in the industry. 1CAT outperforms 91.89% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1CAT is significantly above the industry average of 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | 44.89% | ||
| ROIC | 16.47% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.9%
ROIC(5y)14.36%
1.3 Margins
- Looking at the Profit Margin, with a value of 14.34%, 1CAT belongs to the top of the industry, outperforming 92.79% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1CAT has grown nicely.
- The Operating Margin of 1CAT (19.93%) is better than 91.89% of its industry peers.
- In the last couple of years the Operating Margin of 1CAT has grown nicely.
- 1CAT has a Gross Margin (35.53%) which is in line with its industry peers.
- 1CAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.93% | ||
| PM (TTM) | 14.34% | ||
| GM | 35.53% |
OM growth 3Y15.96%
OM growth 5Y5.59%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.82%
GM growth 5Y3.49%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1CAT is creating value.
- The number of shares outstanding for 1CAT has been reduced compared to 1 year ago.
- Compared to 5 years ago, 1CAT has less shares outstanding
- 1CAT has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.76 indicates that 1CAT is not in any danger for bankruptcy at the moment.
- 1CAT's Altman-Z score of 4.76 is amongst the best of the industry. 1CAT outperforms 87.39% of its industry peers.
- The Debt to FCF ratio of 1CAT is 4.34, which is a neutral value as it means it would take 1CAT, 4.34 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 4.34, 1CAT is doing good in the industry, outperforming 61.26% of the companies in the same industry.
- A Debt/Equity ratio of 1.56 is on the high side and indicates that 1CAT has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.56, 1CAT is doing worse than 85.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.76 |
ROIC/WACC1.75
WACC9.42%
2.3 Liquidity
- A Current Ratio of 1.38 indicates that 1CAT should not have too much problems paying its short term obligations.
- The Current ratio of 1CAT (1.38) is comparable to the rest of the industry.
- A Quick Ratio of 0.86 indicates that 1CAT may have some problems paying its short term obligations.
- With a Quick ratio value of 0.86, 1CAT is not doing good in the industry: 60.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- 1CAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.32%.
- 1CAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.64% yearly.
- 1CAT shows a decrease in Revenue. In the last year, the revenue decreased by -1.51%.
- The Revenue has been growing slightly by 3.79% on average over the past years.
EPS 1Y (TTM)-13.32%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-4.26%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%9.51%
3.2 Future
- 1CAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.73% yearly.
- Based on estimates for the next years, 1CAT will show a small growth in Revenue. The Revenue will grow by 4.38% on average per year.
EPS Next Y-13.69%
EPS Next 2Y1.49%
EPS Next 3Y6.95%
EPS Next 5Y14.73%
Revenue Next Year2.4%
Revenue Next 2Y5.27%
Revenue Next 3Y6.12%
Revenue Next 5Y4.38%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1CAT is valuated quite expensively with a Price/Earnings ratio of 33.77.
- 1CAT's Price/Earnings ratio is in line with the industry average.
- 1CAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 28.55, 1CAT can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, 1CAT is valued a bit more expensive than the industry average as 72.97% of the companies are valued more cheaply.
- 1CAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.77 | ||
| Fwd PE | 28.55 |
4.2 Price Multiples
- 77.48% of the companies in the same industry are cheaper than 1CAT, based on the Enterprise Value to EBITDA ratio.
- 1CAT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.47 | ||
| EV/EBITDA | 21.89 |
4.3 Compensation for Growth
- The excellent profitability rating of 1CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.31
EPS Next 2Y1.49%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.93%, 1CAT is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.48, 1CAT has a dividend in line with its industry peers.
- With a Dividend Yield of 0.93, 1CAT pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
- The dividend of 1CAT is nicely growing with an annual growth rate of 7.41%!
Dividend Growth(5Y)7.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1CAT pays out 29.36% of its income as dividend. This is a sustainable payout ratio.
- 1CAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.36%
EPS Next 2Y1.49%
EPS Next 3Y6.95%
CATERPILLAR INC / 1CAT.MI FAQ
Can you provide the ChartMill fundamental rating for CATERPILLAR INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1CAT.MI.
What is the valuation status of CATERPILLAR INC (1CAT.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to CATERPILLAR INC (1CAT.MI). This can be considered as Overvalued.
Can you provide the profitability details for CATERPILLAR INC?
CATERPILLAR INC (1CAT.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CATERPILLAR INC (1CAT.MI) stock?
The Price/Earnings (PE) ratio for CATERPILLAR INC (1CAT.MI) is 33.77 and the Price/Book (PB) ratio is 14.59.
What is the financial health of CATERPILLAR INC (1CAT.MI) stock?
The financial health rating of CATERPILLAR INC (1CAT.MI) is 5 / 10.