CATERPILLAR INC (1CAT.MI) Stock Fundamental Analysis
BIT:1CAT - Euronext Milan - US1491231015 - Common Stock - Currency: EUR
Overall 1CAT gets a fundamental rating of 6 out of 10. We evaluated 1CAT against 108 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1CAT had positive earnings in the past year.
1CAT had a positive operating cash flow in the past year.
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's Return On Assets of 12.30% is amongst the best of the industry. 1CAT outperforms 94.17% of its industry peers.
Looking at the Return On Equity, with a value of 55.37%, 1CAT belongs to the top of the industry, outperforming 98.06% of the companies in the same industry.
The Return On Invested Capital of 1CAT (19.49%) is better than 95.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1CAT is significantly above the industry average of 8.73%.
The 3 year average ROIC (17.74%) for 1CAT is below the current ROIC(19.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 55.37% | ||
| ROIC | 19.49% |
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
With an excellent Profit Margin value of 16.65%, 1CAT belongs to the best of the industry, outperforming 96.12% of the companies in the same industry.
1CAT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.65%, 1CAT belongs to the best of the industry, outperforming 95.15% of the companies in the same industry.
1CAT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 38.12%, 1CAT perfoms like the industry average, outperforming 47.57% of the companies in the same industry.
1CAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.65% | ||
| PM (TTM) | 16.65% | ||
| GM | 38.12% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1CAT is creating value.
The number of shares outstanding for 1CAT has been reduced compared to 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
1CAT has an Altman-Z score of 3.90. This indicates that 1CAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1CAT (3.90) is better than 89.32% of its industry peers.
The Debt to FCF ratio of 1CAT is 4.35, which is a neutral value as it means it would take 1CAT, 4.35 years of fcf income to pay off all of its debts.
1CAT's Debt to FCF ratio of 4.35 is fine compared to the rest of the industry. 1CAT outperforms 63.11% of its industry peers.
A Debt/Equity ratio of 1.63 is on the high side and indicates that 1CAT has dependencies on debt financing.
1CAT has a Debt to Equity ratio of 1.63. This is amonst the worse of the industry: 1CAT underperforms 87.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 3.9 |
ROIC/WACC1.88
WACC10.35%
2.3 Liquidity
A Current Ratio of 1.42 indicates that 1CAT should not have too much problems paying its short term obligations.
The Current ratio of 1CAT (1.42) is worse than 63.11% of its industry peers.
1CAT has a Quick Ratio of 1.42. 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's Quick ratio of 0.89 is on the low side compared to the rest of the industry. 1CAT is outperformed by 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.25% over the past year.
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.
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 8.64% yearly.
Based on estimates for the next years, 1CAT will show a quite strong growth in Revenue. The Revenue will grow by 9.55% on average per year.
EPS Next Y0.88%
EPS Next 2Y5.47%
EPS Next 3Y3.3%
EPS Next 5Y8.64%
Revenue Next Year0.83%
Revenue Next 2Y3.13%
Revenue Next 3Y6.26%
Revenue Next 5Y9.55%
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
A Price/Earnings ratio of 15.93 indicates a correct valuation of 1CAT.
Based on the Price/Earnings ratio, 1CAT is valued a bit cheaper than 60.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, 1CAT is valued a bit cheaper.
1CAT is valuated correctly with a Price/Forward Earnings ratio of 15.79.
1CAT's Price/Forward Earnings ratio is in line with the industry average.
1CAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 15.79 |
4.2 Price Multiples
66.02% 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 | 19.09 | ||
| EV/EBITDA | 11.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1CAT may justify a higher PE ratio.
PEG (NY)18.02
PEG (5Y)1.09
EPS Next 2Y5.47%
EPS Next 3Y3.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.50%, 1CAT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.13, 1CAT has a dividend in line with its industry peers.
1CAT's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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 2Y5.47%
EPS Next 3Y3.3%
BIT:1CAT (2/20/2025, 7:00:00 PM)
334
-17 (-4.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.55%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap161.26B
Analysts68.67
Price Target382.3 (14.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend5.39
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)-1.26%
Min EPS beat(2)-4.08%
Max EPS beat(2)1.56%
EPS beat(4)3
Avg EPS beat(4)3.13%
Min EPS beat(4)-4.08%
Max EPS beat(4)7.96%
EPS beat(8)7
Avg EPS beat(8)10.5%
EPS beat(12)11
Avg EPS beat(12)10.59%
EPS beat(16)15
Avg EPS beat(16)13.66%
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)26.37%
PT rev (3m)26.37%
EPS NQ rev (1m)-9.84%
EPS NQ rev (3m)-9.84%
EPS NY rev (1m)-2.78%
EPS NY rev (3m)-2.78%
Revenue NQ rev (1m)-4.55%
Revenue NQ rev (3m)-4.55%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 15.79 | ||
| P/S | 2.6 | ||
| P/FCF | 19.09 | ||
| P/OCF | 13.99 | ||
| P/B | 8.64 | ||
| P/tB | 12.16 | ||
| EV/EBITDA | 11.62 |
EPS(TTM)20.97
EY6.28%
EPS(NY)21.16
Fwd EY6.33%
FCF(TTM)17.49
FCFY5.24%
OCF(TTM)23.87
OCFY7.15%
SpS128.54
BVpS38.66
TBVpS27.47
PEG (NY)18.02
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 55.37% | ||
| ROCE | 26.45% | ||
| ROIC | 19.49% | ||
| ROICexc | 22.03% | ||
| ROICexgc | 24.65% | ||
| OM | 22.65% | ||
| PM (TTM) | 16.65% | ||
| GM | 38.12% | ||
| 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 | 1.89 | ||
| Cap/Depr | 149.33% | ||
| Cap/Sales | 4.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.5% | ||
| Profit Quality | 81.73% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 3.9 |
F-Score7
WACC10.35%
ROIC/WACC1.88
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 Y0.88%
EPS Next 2Y5.47%
EPS Next 3Y3.3%
EPS Next 5Y8.64%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-5.01%
Revenue Next Year0.83%
Revenue Next 2Y3.13%
Revenue Next 3Y6.26%
Revenue Next 5Y9.55%
EBIT growth 1Y-0.65%
EBIT growth 3Y24.6%
EBIT growth 5Y9.05%
EBIT Next Year14.89%
EBIT Next 3Y1.04%
EBIT Next 5Y10.29%
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%