CATERPILLAR INC (1CAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CAT - US1491231015 - Common Stock
538 EUR
-6 (-1.1%)
We assign a fundamental rating of 5 out of 10 to 1CAT. 1CAT was compared to 111 industry peers in the Machinery industry. 1CAT scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, 1CAT is valued expensive at the moment.
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.
- Each year in the past 5 years 1CAT has been profitable.
- Each year in the past 5 years 1CAT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 9.89%, 1CAT belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
- The Return On Equity of 1CAT (44.89%) is better than 96.40% of its industry peers.
- With an excellent Return On Invested Capital value of 16.47%, 1CAT belongs to the best of the industry, outperforming 90.99% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of 1CAT (14.34%) is better than 91.89% of its industry peers.
- In the last couple of years the Profit Margin of 1CAT has grown nicely.
- 1CAT has a Operating Margin of 19.93%. This is amongst the best in the industry. 1CAT outperforms 90.99% of its industry peers.
- 1CAT's Operating Margin has improved in the last couple of years.
- 1CAT's Gross Margin of 35.53% is on the low side compared to the rest of the industry. 1CAT is outperformed by 60.36% of 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1CAT is creating value.
- The number of shares outstanding for 1CAT has been reduced compared to 1 year ago.
- 1CAT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1CAT has a worse debt to assets ratio.
2.2 Solvency
- 1CAT has an Altman-Z score of 4.71. This indicates that 1CAT is financially healthy and has little risk of bankruptcy at the moment.
- 1CAT has a better Altman-Z score (4.71) than 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 60.36% 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.
- With a Debt to Equity ratio value of 1.56, 1CAT is not doing good in the industry: 86.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.71 |
ROIC/WACC1.75
WACC9.41%
2.3 Liquidity
- A Current Ratio of 1.38 indicates that 1CAT should not have too much problems paying its short term obligations.
- 1CAT's Current ratio of 1.38 is in line compared to the rest of the industry. 1CAT outperforms 40.54% of its industry peers.
- 1CAT has a Quick Ratio of 1.38. This is a bad value and indicates that 1CAT is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1CAT has a worse Quick ratio (0.86) than 61.26% of its industry peers.
| 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.
- Looking at the last year, 1CAT shows a decrease in Revenue. The Revenue has decreased by -1.51% in the last year.
- 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
- Based on estimates for the next years, 1CAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.73% on average per year.
- The Revenue is expected to grow by 4.38% on average over the next years.
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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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 33.15.
- 1CAT's Price/Earnings is on the same level as the industry average.
- 1CAT is valuated rather expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 28.01, 1CAT can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, 1CAT is valued a bit more expensive than 70.27% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1CAT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.15 | ||
| Fwd PE | 28.01 |
4.2 Price Multiples
- 1CAT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1CAT is more expensive than 76.58% of the companies in the same industry.
- 1CAT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.88 | ||
| EV/EBITDA | 21.52 |
4.3 Compensation for Growth
- The excellent profitability rating of 1CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.26
EPS Next 2Y1.49%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
- 1CAT has a yearly dividend return of 0.93%, which is pretty low.
- 1CAT's Dividend Yield is comparable with the industry average which is at 1.48.
- 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
- On average, the dividend of 1CAT grows each year by 7.41%, which is quite nice.
Dividend Growth(5Y)7.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 29.36% of the earnings are spent on dividend by 1CAT. This is a low number and 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 33.15 and the Price/Book (PB) ratio is 14.31.
What is the financial health of CATERPILLAR INC (1CAT.MI) stock?
The financial health rating of CATERPILLAR INC (1CAT.MI) is 5 / 10.