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 115 industry peers in the Machinery industry. 1CAT has an excellent profitability rating, 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
- In the past year 1CAT was profitable.
- In the past year 1CAT had a positive cash flow from operations.
- Each year in the past 5 years 1CAT has been profitable.
- In the past 5 years 1CAT always reported a positive cash flow from operatings.
1.2 Ratios
- 1CAT's Return On Assets of 9.89% is amongst the best of the industry. 1CAT outperforms 87.83% of its industry peers.
- The Return On Equity of 1CAT (44.89%) is better than 97.39% of its industry peers.
- 1CAT's Return On Invested Capital of 16.47% is amongst the best of the industry. 1CAT outperforms 93.04% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1CAT is significantly above the industry average of 8.97%.
| 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
- 1CAT's Profit Margin of 14.34% is amongst the best of the industry. 1CAT outperforms 93.04% of its industry peers.
- 1CAT's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 19.93%, 1CAT belongs to the best of the industry, outperforming 90.43% of the companies in the same industry.
- 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 in line with its industry, outperforming 42.61% 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
- 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.
- The number of shares outstanding for 1CAT has been reduced compared to 5 years ago.
- Compared to 1 year ago, 1CAT has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.73 indicates that 1CAT is not in any danger for bankruptcy at the moment.
- 1CAT's Altman-Z score of 4.73 is amongst the best of the industry. 1CAT outperforms 86.96% 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.
- 1CAT has a Debt to FCF ratio of 4.34. This is in the better half of the industry: 1CAT outperforms 61.74% of its industry peers.
- 1CAT has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of 1CAT (1.56) is worse than 85.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.73 |
ROIC/WACC1.73
WACC9.54%
2.3 Liquidity
- 1CAT has a Current Ratio of 1.38. This is a normal value and indicates that 1CAT is financially healthy and should not expect problems in meeting 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: 60.00% 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
- The earnings per share for 1CAT have decreased strongly by -13.32% in the last year.
- 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%.
- Measured over the past years, 1CAT shows a small growth in Revenue. The Revenue has been growing by 3.79% on average per year.
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.
- The Revenue is expected to grow by 4.38% on average over the next years.
EPS Next Y-13.6%
EPS Next 2Y1.27%
EPS Next 3Y6.79%
EPS Next 5Y14.73%
Revenue Next Year2.29%
Revenue Next 2Y5.13%
Revenue Next 3Y6.02%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 33.05, the valuation of 1CAT can be described as expensive.
- 1CAT's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of 1CAT to the average of the S&P500 Index (27.21), we can say 1CAT is valued slightly more expensively.
- 1CAT is valuated quite expensively with a Price/Forward Earnings ratio of 28.04.
- Based on the Price/Forward Earnings ratio, 1CAT is valued a bit more expensive than the industry average as 71.30% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. 1CAT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 28.04 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1CAT is valued a bit more expensive than 75.65% of the companies in the same industry.
- 1CAT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.78 | ||
| EV/EBITDA | 21.68 |
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 2Y1.27%
EPS Next 3Y6.79%
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 1.50.
- 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.
- The dividend of 1CAT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.36%
EPS Next 2Y1.27%
EPS Next 3Y6.79%
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 33.05 and the Price/Book (PB) ratio is 14.27.
What is the financial health of CATERPILLAR INC (1CAT.MI) stock?
The financial health rating of CATERPILLAR INC (1CAT.MI) is 5 / 10.