CATERPILLAR INC (1CAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CAT - US1491231015 - Common Stock
538 EUR
-6 (-1.1%)
Taking everything into account, 1CAT scores 5 out of 10 in our fundamental rating. 1CAT was compared to 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.
- 1CAT had a positive operating cash flow in the past year.
- 1CAT had positive earnings in each of the past 5 years.
- 1CAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 9.89%, 1CAT belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
- With an excellent Return On Equity value of 44.89%, 1CAT belongs to the best of the industry, outperforming 96.40% 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 90.99% 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 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's Profit Margin of 14.34% is amongst the best of the industry. 1CAT outperforms 91.89% 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 90.99% of its industry peers.
- 1CAT's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1CAT (35.53%) is worse than 60.36% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1CAT is creating value.
- Compared to 1 year ago, 1CAT has less shares outstanding
- 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 4.73 indicates that 1CAT is not in any danger for bankruptcy at the moment.
- 1CAT has a better Altman-Z score (4.73) than 88.29% 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.
- The Debt to FCF ratio of 1CAT (4.34) is better than 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 Debt to Equity ratio of 1.56. This is amonst the worse of the industry: 1CAT underperforms 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.73 |
ROIC/WACC1.75
WACC9.41%
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.
- 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 Quick ratio of 0.86. This is in the lower half of the industry: 1CAT underperforms 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.
- 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
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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 33.42, which means the current valuation is very expensive for 1CAT.
- The rest of the industry has a similar Price/Earnings ratio as 1CAT.
- 1CAT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 28.23, the valuation of 1CAT can be described as expensive.
- Based on the Price/Forward Earnings ratio, 1CAT is valued a bit more expensive than the industry average as 72.07% of the companies are valued more cheaply.
- 1CAT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.42 | ||
| Fwd PE | 28.23 |
4.2 Price Multiples
- 76.58% of the companies in the same industry are cheaper than 1CAT, based on the Enterprise Value to EBITDA ratio.
- 1CAT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.12 | ||
| EV/EBITDA | 21.67 |
4.3 Compensation for Growth
- The excellent profitability rating of 1CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.28
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.
- 1CAT's Dividend Yield is comparable with the industry average which is at 1.48.
- 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
- 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 2Y1.49%
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 33.42 and the Price/Book (PB) ratio is 14.43.
What is the financial health of CATERPILLAR INC (1CAT.MI) stock?
The financial health rating of CATERPILLAR INC (1CAT.MI) is 5 / 10.