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 103 industry peers in the Machinery industry. 1CAT has an excellent profitability rating, but there are some minor concerns on its financial health. 1CAT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1CAT was profitable.
1CAT had a positive operating cash flow in the past year.
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 Return On Assets of 11.70%. This is amongst the best in the industry. 1CAT outperforms 93.69% of its industry peers.
Looking at the Return On Equity, with a value of 55.01%, 1CAT belongs to the top of the industry, outperforming 98.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.67%, 1CAT belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1CAT is significantly above the industry average of 8.83%.
The 3 year average ROIC (17.90%) for 1CAT is below the current ROIC(19.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.7% | ||
| ROE | 55.01% | ||
| ROIC | 19.67% |
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 15.71%, 1CAT belongs to the top of the industry, outperforming 93.69% of the companies in the same industry.
In the last couple of years the Profit Margin of 1CAT has grown nicely.
The Operating Margin of 1CAT (21.83%) is better than 94.59% of its industry peers.
In the last couple of years the Operating Margin of 1CAT has grown nicely.
1CAT has a Gross Margin (37.68%) which is in line with its industry peers.
1CAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.83% | ||
| PM (TTM) | 15.71% | ||
| GM | 37.68% |
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.
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 3.88 indicates that 1CAT is not in any danger for bankruptcy at the moment.
1CAT's Altman-Z score of 3.88 is amongst the best of the industry. 1CAT outperforms 87.39% of its industry peers.
1CAT has a debt to FCF ratio of 4.90. This is a neutral value as 1CAT would need 4.90 years to pay back of all of its debts.
1CAT's Debt to FCF ratio of 4.90 is fine compared to the rest of the industry. 1CAT outperforms 60.36% of its industry peers.
1CAT has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.62, 1CAT is not doing good in the industry: 85.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 3.88 |
ROIC/WACC2.06
WACC9.56%
2.3 Liquidity
1CAT has a Current Ratio of 1.32. This is a normal value and indicates that 1CAT is financially healthy and should not expect problems in meeting its short term obligations.
1CAT has a Current ratio of 1.32. This is in the lower half of the industry: 1CAT underperforms 63.96% of its industry peers.
1CAT has a Quick Ratio of 1.32. This is a bad value and indicates that 1CAT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.77, 1CAT is not doing good in the industry: 71.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
1CAT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.16%.
1CAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.64% yearly.
The Revenue has decreased by -5.58% 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)-6.16%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-24.11%
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-9.81%
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-14.01%
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
EPS Next 5Y8.22%
Revenue Next Year-2.48%
Revenue Next 2Y1.17%
Revenue Next 3Y2.67%
Revenue Next 5Y9.61%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 16.67, 1CAT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of 1CAT indicates a somewhat cheap valuation: 1CAT is cheaper than 63.06% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1CAT to the average of the S&P500 Index (27.45), we can say 1CAT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.34, the valuation of 1CAT can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CAT is on the same level as its industry peers.
1CAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 16.34 |
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 63.06% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1CAT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.45 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
The excellent profitability rating of 1CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, 1CAT has a reasonable but not impressive dividend return.
1CAT's Dividend Yield is comparable with the industry average which is at 2.91.
Compared to the average S&P500 Dividend Yield of 2.38, 1CAT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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 26.88% of its income as dividend. This is a 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.
DP26.88%
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
BIT:1CAT (5/23/2025, 7:00:00 PM)
302
-10.5 (-3.36%)
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 Cap142.03B
Analysts69.38
Price Target326.63 (8.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend4.78
Dividend Growth(5Y)7.41%
DP26.88%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.9%
Min EPS beat(2)-3.19%
Max EPS beat(2)1.39%
EPS beat(4)2
Avg EPS beat(4)0.3%
Min EPS beat(4)-4.08%
Max EPS beat(4)7.07%
EPS beat(8)6
Avg EPS beat(8)6.5%
EPS beat(12)10
Avg EPS beat(12)9.51%
EPS beat(16)14
Avg EPS beat(16)10.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.9%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-2.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.86%
Revenue beat(8)2
Avg Revenue beat(8)-0.87%
Revenue beat(12)5
Avg Revenue beat(12)0.03%
Revenue beat(16)8
Avg Revenue beat(16)0.28%
PT rev (1m)6.39%
PT rev (3m)-14.56%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)-5.97%
EPS NY rev (1m)-4.01%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)2.37%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 16.34 | ||
| P/S | 2.55 | ||
| P/FCF | 20.45 | ||
| P/OCF | 14.29 | ||
| P/B | 8.91 | ||
| P/tB | 12.95 | ||
| EV/EBITDA | 12.05 |
EPS(TTM)18.12
EY6%
EPS(NY)18.48
Fwd EY6.12%
FCF(TTM)14.77
FCFY4.89%
OCF(TTM)21.14
OCFY7%
SpS118.62
BVpS33.88
TBVpS23.32
PEG (NY)N/A
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.7% | ||
| ROE | 55.01% | ||
| ROCE | 26.37% | ||
| ROIC | 19.67% | ||
| ROICexc | 21.01% | ||
| ROICexgc | 23.55% | ||
| OM | 21.83% | ||
| PM (TTM) | 15.71% | ||
| GM | 37.68% | ||
| FCFM | 12.45% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.9%
ROIC(5y)14.36%
ROICexc(3y)20.33%
ROICexc(5y)16.54%
ROICexgc(3y)22.96%
ROICexgc(5y)18.93%
ROCE(3y)24.59%
ROCE(5y)19.65%
ROICexcg growth 3Y20.44%
ROICexcg growth 5Y6.45%
ROICexc growth 3Y22.47%
ROICexc growth 5Y7.76%
OM growth 3Y15.96%
OM growth 5Y5.59%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.82%
GM growth 5Y3.49%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 156.62% | ||
| Cap/Sales | 5.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.54% | ||
| Profit Quality | 79.23% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.88 |
F-Score5
WACC9.56%
ROIC/WACC2.06
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)-6.16%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-24.11%
EPS Next Y-14.01%
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
EPS Next 5Y8.22%
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-9.81%
Revenue Next Year-2.48%
Revenue Next 2Y1.17%
Revenue Next 3Y2.67%
Revenue Next 5Y9.61%
EBIT growth 1Y-8.1%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-1.31%
EBIT Next 3Y3.26%
EBIT Next 5Y8.31%
FCF growth 1Y23.9%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y24.88%
OCF growth 3Y18.69%
OCF growth 5Y11.73%