CATERPILLAR INC (1CAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CAT - US1491231015 - Common Stock
538 EUR
-6 (-1.1%)
Overall 1CAT gets a fundamental rating of 5 out of 10. We evaluated 1CAT against 115 industry peers in the Machinery industry. While 1CAT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1CAT is quite expensive at the moment. 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.
- In the past 5 years 1CAT always reported a positive cash flow from operatings.
1.2 Ratios
- 1CAT has a Return On Assets of 9.89%. This is amongst the best in the industry. 1CAT outperforms 87.83% of its industry peers.
- With an excellent Return On Equity value of 44.89%, 1CAT belongs to the best of the industry, outperforming 97.39% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 16.47%, 1CAT belongs to the best of the industry, outperforming 93.04% of the companies in the same industry.
- 1CAT had an Average Return On Invested Capital over the past 3 years of 17.90%. This 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 has a Profit Margin of 14.34%. This is amongst the best in the industry. 1CAT outperforms 93.04% of its industry peers.
- In the last couple of years the Profit Margin of 1CAT has grown nicely.
- The Operating Margin of 1CAT (19.93%) is better than 90.43% 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 in line with its industry, outperforming 42.61% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1CAT is creating value.
- 1CAT has less shares outstanding than it did 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
- An Altman-Z score of 4.73 indicates that 1CAT is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1CAT (4.73) is better than 86.96% of its industry peers.
- 1CAT has a debt to FCF ratio of 4.34. This is a neutral value as 1CAT would need 4.34 years to pay back of 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.
- 1CAT has a worse Debt to Equity ratio (1.56) than 85.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.73 |
ROIC/WACC1.72
WACC9.56%
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 41.74% of the companies in the same industry.
- 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 60.00% 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%.
- Measured over the past years, 1CAT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.64% on average per year.
- 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
- 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-13.6%
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.
- 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
- 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.
- Based on the Price/Forward Earnings ratio of 28.04, the valuation of 1CAT can be described as expensive.
- Based on the Price/Forward Earnings ratio, 1CAT is valued a bit more expensive than 71.30% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, 1CAT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 28.04 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1CAT indicates a slightly more expensive valuation: 1CAT is more expensive than 75.65% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1CAT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.78 | ||
| EV/EBITDA | 21.68 |
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 2Y1.27%
EPS Next 3Y6.79%
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 1.50, 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
- 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
- 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 2Y1.27%
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.