CATERPILLAR INC (1CAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CAT - US1491231015 - Common Stock
538 EUR
-6 (-1.1%)
1CAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 111 industry peers in the Machinery industry. While 1CAT has a great profitability rating, 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
- In the past year 1CAT was profitable.
- In the past year 1CAT had a positive cash flow from operations.
- 1CAT had positive earnings in each of the past 5 years.
- In the past 5 years 1CAT always reported a positive cash flow from operatings.
1.2 Ratios
- 1CAT has a better Return On Assets (9.89%) than 86.49% of its industry peers.
- 1CAT has a better Return On Equity (44.89%) than 96.40% of its industry peers.
- The Return On Invested Capital of 1CAT (16.47%) is better than 90.99% of its industry peers.
- 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
- Looking at the Profit Margin, with a value of 14.34%, 1CAT belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
- 1CAT's Profit Margin has improved in the last couple of years.
- 1CAT's Operating Margin of 19.93% is amongst the best of the industry. 1CAT outperforms 90.99% of its industry peers.
- In the last couple of years the Operating Margin of 1CAT has grown nicely.
- Looking at the Gross Margin, with a value of 35.53%, 1CAT is doing worse than 60.36% of the companies in the same industry.
- 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.
- 1CAT has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1CAT has been reduced compared to 5 years ago.
- The debt/assets ratio for 1CAT is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.71 indicates that 1CAT is not in any danger for bankruptcy at the moment.
- 1CAT's Altman-Z score of 4.71 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.
- Looking at the Debt to FCF ratio, with a value of 4.34, 1CAT is in the better half of 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.
- The Debt to Equity ratio of 1CAT (1.56) is worse than 86.49% of its industry peers.
| 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.
- Looking at the Current ratio, with a value of 1.38, 1CAT is in line with its industry, outperforming 40.54% of the companies in the same industry.
- A Quick Ratio of 0.86 indicates that 1CAT may have some problems paying 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%.
- The Earnings Per Share has been growing by 14.64% on average over the past years. This is quite good.
- Looking at the last year, 1CAT shows a decrease in Revenue. The Revenue has decreased by -1.51% in the last year.
- 1CAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
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
- The Earnings Per Share is expected to grow by 14.73% on average over the next years. This is quite good.
- 1CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
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
- A Price/Earnings ratio of 33.15 indicates a quite expensive valuation of 1CAT.
- 1CAT's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1CAT is valued a bit more expensive.
- 1CAT is valuated quite expensively with a Price/Forward Earnings ratio of 28.01.
- 70.27% of the companies in the same industry are cheaper than 1CAT, based on the Price/Forward Earnings ratio.
- 1CAT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.15 | ||
| Fwd PE | 28.01 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1CAT is valued a bit more expensive than the industry average as 76.58% of the companies are valued more cheaply.
- 1CAT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.88 | ||
| EV/EBITDA | 21.52 |
4.3 Compensation for Growth
- 1CAT has an outstanding profitability rating, which 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
- With a yearly dividend of 0.93%, 1CAT is not a good candidate for dividend investing.
- 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 1.81.
| 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 9 / 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.