CATERPILLAR INC (1CAT.MI) Stock Fundamental Analysis
BIT:1CAT - Euronext Milan - US1491231015 - Common Stock - Currency: EUR
Taking everything into account, 1CAT scores 6 out of 10 in our fundamental rating. 1CAT was compared to 102 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1CAT was profitable.
1CAT had a positive operating cash flow in the past year.
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
1CAT has a Return On Assets of 12.30%. This is amongst the best in the industry. 1CAT outperforms 95.10% of its industry peers.
With an excellent Return On Equity value of 55.37%, 1CAT belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
1CAT's Return On Invested Capital of 19.54% is amongst the best of the industry. 1CAT outperforms 96.08% of its industry peers.
1CAT had an Average Return On Invested Capital over the past 3 years of 17.74%. This is significantly above the industry average of 8.38%.
The last Return On Invested Capital (19.54%) for 1CAT is above the 3 year average (17.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 55.37% | ||
| ROIC | 19.54% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.74%
ROIC(5y)14.27%
1.3 Margins
The Profit Margin of 1CAT (16.65%) is better than 96.08% of its industry peers.
In the last couple of years the Profit Margin of 1CAT has grown nicely.
With an excellent Operating Margin value of 22.71%, 1CAT belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
In the last couple of years the Operating Margin of 1CAT has grown nicely.
The Gross Margin of 1CAT (38.16%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1CAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.71% | ||
| PM (TTM) | 16.65% | ||
| GM | 38.16% |
OM growth 3Y15.01%
OM growth 5Y5.07%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.65%
GM growth 5Y3.39%
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.
1CAT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1CAT is higher compared to a year ago.
2.2 Solvency
1CAT has an Altman-Z score of 3.62. This indicates that 1CAT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.62, 1CAT belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
1CAT has a debt to FCF ratio of 4.35. This is a neutral value as 1CAT would need 4.35 years to pay back of all of its debts.
1CAT has a better Debt to FCF ratio (4.35) than 63.73% of its industry peers.
1CAT has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.63, 1CAT is doing worse than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 3.62 |
ROIC/WACC2.02
WACC9.69%
2.3 Liquidity
A Current Ratio of 1.42 indicates that 1CAT should not have too much problems paying its short term obligations.
1CAT has a Current ratio (1.42) which is comparable to the rest of the industry.
A Quick Ratio of 0.89 indicates that 1CAT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.89, 1CAT is doing worse than 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
1CAT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.25%.
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 -3.36% 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)3.25%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-1.72%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-5.01%
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 8.22% yearly.
Based on estimates for the next years, 1CAT will show a quite strong growth in Revenue. The Revenue will grow by 9.61% on average per year.
EPS Next Y-7.52%
EPS Next 2Y1.78%
EPS Next 3Y5.02%
EPS Next 5Y8.22%
Revenue Next Year-2.67%
Revenue Next 2Y1.03%
Revenue Next 3Y2.44%
Revenue Next 5Y9.61%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.99 indicates a correct valuation of 1CAT.
Based on the Price/Earnings ratio, 1CAT is valued a bit cheaper than the industry average as 68.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 1CAT is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.04, 1CAT is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as 1CAT.
The average S&P500 Price/Forward Earnings ratio is at 21.38. 1CAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1CAT is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1CAT is valued a bit cheaper than the industry average as 60.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.41 | ||
| EV/EBITDA | 9.67 |
4.3 Compensation for Growth
1CAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y1.78%
EPS Next 3Y5.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, 1CAT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.71, 1CAT pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.51, 1CAT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
The dividend of 1CAT is nicely growing with an annual growth rate of 7.30%!
Dividend Growth(5Y)7.3%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
24.52% of the earnings are spent on dividend by 1CAT. This is a low number and sustainable payout ratio.
1CAT's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP24.52%
EPS Next 2Y1.78%
EPS Next 3Y5.02%
BIT:1CAT (4/22/2025, 7:00:00 PM)
250
-13 (-4.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap119.48B
Analysts69.68
Price Target355.66 (42.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend4.75
Dividend Growth(5Y)7.3%
DP24.52%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.35%
Min EPS beat(2)-4.08%
Max EPS beat(2)1.39%
EPS beat(4)3
Avg EPS beat(4)3.08%
Min EPS beat(4)-4.08%
Max EPS beat(4)7.96%
EPS beat(8)7
Avg EPS beat(8)10.48%
EPS beat(12)11
Avg EPS beat(12)10.58%
EPS beat(16)15
Avg EPS beat(16)13.65%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)-0.86%
Revenue beat(8)3
Avg Revenue beat(8)-0.02%
Revenue beat(12)6
Avg Revenue beat(12)0.38%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)-6.97%
PT rev (3m)17.56%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-23.77%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-10.88%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-9.31%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-5.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 14.04 | ||
| P/S | 2.1 | ||
| P/FCF | 15.41 | ||
| P/OCF | 11.29 | ||
| P/B | 6.97 | ||
| P/tB | 9.81 | ||
| EV/EBITDA | 9.67 |
EPS(TTM)19.25
EY7.7%
EPS(NY)17.8
Fwd EY7.12%
FCF(TTM)16.22
FCFY6.49%
OCF(TTM)22.14
OCFY8.85%
SpS119.2
BVpS35.85
TBVpS25.48
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 55.37% | ||
| ROCE | 26.52% | ||
| ROIC | 19.54% | ||
| ROICexc | 22.08% | ||
| ROICexgc | 24.71% | ||
| OM | 22.71% | ||
| PM (TTM) | 16.65% | ||
| GM | 38.16% | ||
| FCFM | 13.61% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.74%
ROIC(5y)14.27%
ROICexc(3y)20.15%
ROICexc(5y)16.43%
ROICexgc(3y)22.76%
ROICexgc(5y)18.81%
ROCE(3y)24.37%
ROCE(5y)19.52%
ROICexcg growth 3Y19.45%
ROICexcg growth 5Y5.93%
ROICexc growth 3Y21.46%
ROICexc growth 5Y7.23%
OM growth 3Y15.01%
OM growth 5Y5.07%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.65%
GM growth 5Y3.39%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 149.33% | ||
| Cap/Sales | 4.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.34% | ||
| Profit Quality | 81.73% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 3.62 |
F-Score7
WACC9.69%
ROIC/WACC2.02
Cap/Depr(3y)136.89%
Cap/Depr(5y)120.55%
Cap/Sales(3y)4.65%
Cap/Sales(5y)4.77%
Profit Quality(3y)84.51%
Profit Quality(5y)93.37%
High Growth Momentum
Growth
EPS 1Y (TTM)3.25%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-1.72%
EPS Next Y-7.52%
EPS Next 2Y1.78%
EPS Next 3Y5.02%
EPS Next 5Y8.22%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-5.01%
Revenue Next Year-2.67%
Revenue Next 2Y1.03%
Revenue Next 3Y2.44%
Revenue Next 5Y9.61%
EBIT growth 1Y-0.4%
EBIT growth 3Y24.6%
EBIT growth 5Y9.05%
EBIT Next Year3.68%
EBIT Next 3Y4.38%
EBIT Next 5Y8.31%
FCF growth 1Y-9.94%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y-6.6%
OCF growth 3Y18.69%
OCF growth 5Y11.73%