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.
- In the past 5 years 1CAT has always been profitable.
- Each year in the past 5 years 1CAT had a positive operating cash flow.
1.2 Ratios
- 1CAT has a better Return On Assets (9.89%) than 86.49% of its industry peers.
- 1CAT has a Return On Equity of 44.89%. This is amongst the best in the industry. 1CAT outperforms 96.40% of its industry peers.
- 1CAT has a Return On Invested Capital of 16.47%. This is amongst the best in the industry. 1CAT outperforms 90.99% of its industry peers.
- 1CAT had an Average Return On Invested Capital over the past 3 years of 17.90%. This 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
- 1CAT has a better Profit Margin (14.34%) than 91.89% of its industry peers.
- 1CAT's Profit Margin has improved in the last couple of years.
- 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 has a worse Gross Margin (35.53%) than 60.36% of its industry peers.
- In the last couple of years the Gross Margin of 1CAT has grown nicely.
| 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
- 1CAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- 1CAT has less shares outstanding than it did 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 4.75 indicates that 1CAT is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.75, 1CAT belongs to the best of the industry, outperforming 88.29% of the companies in the same industry.
- 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's Debt to FCF ratio of 4.34 is fine compared to the rest of the industry. 1CAT outperforms 60.36% 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.
- 1CAT has a worse Debt to Equity ratio (1.56) than 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.75 |
ROIC/WACC1.75
WACC9.39%
2.3 Liquidity
- A Current Ratio of 1.38 indicates that 1CAT should not have too much problems paying its short term obligations.
- 1CAT has a Current ratio of 1.38. This is comparable 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.
- The Quick ratio of 1CAT (0.86) is worse than 61.26% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 14.64% on average over the past years. This is quite good.
- The Revenue has decreased by -1.51% in the past 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
- 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
- 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
- The Price/Earnings ratio is 33.67, which means the current valuation is very expensive for 1CAT.
- 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 (28.82), we can say 1CAT is valued inline with the index average.
- The Price/Forward Earnings ratio is 28.45, which means the current valuation is very expensive for 1CAT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CAT indicates a slightly more expensive valuation: 1CAT is more expensive than 72.97% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of 1CAT to the average of the S&P500 Index (25.95), we can say 1CAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 28.45 |
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 78.38% 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 | 31.37 | ||
| EV/EBITDA | 21.83 |
4.3 Compensation for Growth
- The excellent profitability rating of 1CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.3
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.
- Compared to an average industry Dividend Yield of 1.48, 1CAT has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1CAT's dividend is way lower than the S&P500 average.
| 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 33.67 and the Price/Book (PB) ratio is 14.54.
What is the financial health of CATERPILLAR INC (1CAT.MI) stock?
The financial health rating of CATERPILLAR INC (1CAT.MI) is 5 / 10.