CATERPILLAR INC (CAT) Fundamental Analysis & Valuation

NYSE:CAT • US1491231015

Current stock price

693.99 USD
-6.7 (-0.96%)
At close:
694.35 USD
+0.36 (+0.05%)
After Hours:

This CAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CAT Profitability Analysis

1.1 Basic Checks

  • CAT had positive earnings in the past year.
  • In the past year CAT had a positive cash flow from operations.
  • In the past 5 years CAT has always been profitable.
  • CAT had a positive operating cash flow in each of the past 5 years.
CAT Yearly Net Income VS EBIT VS OCF VS FCFCAT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

1.2 Ratios

  • CAT has a Return On Assets of 9.01%. This is in the better half of the industry: CAT outperforms 79.39% of its industry peers.
  • CAT has a Return On Equity of 41.67%. This is amongst the best in the industry. CAT outperforms 96.95% of its industry peers.
  • CAT has a Return On Invested Capital of 14.63%. This is amongst the best in the industry. CAT outperforms 88.55% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CAT is significantly above the industry average of 10.16%.
Industry RankSector Rank
ROA 9.01%
ROE 41.67%
ROIC 14.63%
ROA(3y)11.04%
ROA(5y)9.83%
ROE(3y)50.02%
ROE(5y)46.34%
ROIC(3y)17.94%
ROIC(5y)15.44%
CAT Yearly ROA, ROE, ROICCAT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

1.3 Margins

  • With an excellent Profit Margin value of 13.14%, CAT belongs to the best of the industry, outperforming 81.68% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CAT has grown nicely.
  • The Operating Margin of CAT (18.70%) is better than 85.50% of its industry peers.
  • CAT's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 33.87%, CAT perfoms like the industry average, outperforming 59.54% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CAT has grown nicely.
Industry RankSector Rank
OM 18.7%
PM (TTM) 13.14%
GM 33.87%
OM growth 3Y4.3%
OM growth 5Y7.05%
PM growth 3Y5.22%
PM growth 5Y12.85%
GM growth 3Y3.16%
GM growth 5Y2.11%
CAT Yearly Profit, Operating, Gross MarginsCAT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

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4

2. CAT Health Analysis

2.1 Basic Checks

  • CAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • The number of shares outstanding for CAT has been reduced compared to 1 year ago.
  • The number of shares outstanding for CAT has been reduced compared to 5 years ago.
  • The debt/assets ratio for CAT is higher compared to a year ago.
CAT Yearly Shares OutstandingCAT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
CAT Yearly Total Debt VS Total AssetsCAT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.2 Solvency

  • CAT has an Altman-Z score of 4.74. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
  • CAT's Altman-Z score of 4.74 is fine compared to the rest of the industry. CAT outperforms 71.76% of its industry peers.
  • CAT has a debt to FCF ratio of 5.81. This is a neutral value as CAT would need 5.81 years to pay back of all of its debts.
  • The Debt to FCF ratio of CAT (5.81) is comparable to the rest of the industry.
  • CAT has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.70, CAT is not doing good in the industry: 85.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 4.74
ROIC/WACC1.57
WACC9.3%
CAT Yearly LT Debt VS Equity VS FCFCAT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.3 Liquidity

  • CAT has a Current Ratio of 1.44. This is a normal value and indicates that CAT is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of CAT (1.44) is worse than 74.05% of its industry peers.
  • CAT has a Quick Ratio of 1.44. This is a bad value and indicates that CAT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • CAT's Quick ratio of 0.94 is on the low side compared to the rest of the industry. CAT is outperformed by 68.70% of its industry peers.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 0.94
CAT Yearly Current Assets VS Current LiabilitesCAT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. CAT Growth Analysis

3.1 Past

  • The earnings per share for CAT have decreased strongly by -12.88% in the last year.
  • CAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.66% yearly.
  • Looking at the last year, CAT shows a small growth in Revenue. The Revenue has grown by 4.29% in the last year.
  • CAT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.12% yearly.
EPS 1Y (TTM)-12.88%
EPS 3Y10.14%
EPS 5Y25.66%
EPS Q2Q%0.39%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%

3.2 Future

  • CAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.90% yearly.
  • CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.51% yearly.
EPS Next Y20.46%
EPS Next 2Y20.74%
EPS Next 3Y19.31%
EPS Next 5Y19.9%
Revenue Next Year11.58%
Revenue Next 2Y10.09%
Revenue Next 3Y8.89%
Revenue Next 5Y7.51%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CAT Yearly Revenue VS EstimatesCAT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2033 20B 40B 60B 80B 100B
CAT Yearly EPS VS EstimatesCAT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30 40

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2

4. CAT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 36.37, CAT can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, CAT is valued a bit more expensive than 61.83% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (25.70), we can say CAT is valued slightly more expensively.
  • With a Price/Forward Earnings ratio of 30.19, CAT can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 63.36% of the companies listed in the same industry.
  • CAT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.84.
Industry RankSector Rank
PE 36.37
Fwd PE 30.19
CAT Price Earnings VS Forward Price EarningsCAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CAT is valued a bit more expensive than the industry average as 68.70% of the companies are valued more cheaply.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as CAT.
Industry RankSector Rank
P/FCF 43.33
EV/EBITDA 23.54
CAT Per share dataCAT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • CAT has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as CAT's earnings are expected to grow with 19.31% in the coming years.
PEG (NY)1.78
PEG (5Y)1.42
EPS Next 2Y20.74%
EPS Next 3Y19.31%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. CAT Dividend Analysis

5.1 Amount

  • CAT has a yearly dividend return of 0.86%, which is pretty low.
  • CAT's Dividend Yield is a higher than the industry average which is at 1.16.
  • With a Dividend Yield of 0.86, CAT pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.86%

5.2 History

  • On average, the dividend of CAT grows each year by 7.25%, which is quite nice.
  • CAT has been paying a dividend for at least 10 years, so it has a reliable track record.
  • CAT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.25%
Div Incr Years11
Div Non Decr Years11
CAT Yearly Dividends per shareCAT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • CAT pays out 30.94% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of CAT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.94%
EPS Next 2Y20.74%
EPS Next 3Y19.31%
CAT Yearly Income VS Free CF VS DividendCAT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B
CAT Dividend Payout.CAT Dividend Payout, showing the Payout Ratio.CAT Dividend Payout.PayoutRetained Earnings

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CAT Fundamentals: All Metrics, Ratios and Statistics

CATERPILLAR INC

NYSE:CAT (3/13/2026, 8:13:23 PM)

After market: 694.35 +0.36 (+0.05%)

693.99

-6.7 (-0.96%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners72.31%
Inst Owner Change-3.15%
Ins Owners0.17%
Ins Owner Change-0.27%
Market Cap322.91B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.12
Price Target713.02 (2.74%)
Short Float %2.14%
Short Ratio3.56
Dividend
Industry RankSector Rank
Dividend Yield 0.86%
Yearly Dividend5.81
Dividend Growth(5Y)7.25%
DP30.94%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-20
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.81%
Min EPS beat(2)8.35%
Max EPS beat(2)9.27%
EPS beat(4)2
Avg EPS beat(4)2.47%
Min EPS beat(4)-4.57%
Max EPS beat(4)9.27%
EPS beat(8)5
Avg EPS beat(8)2.78%
EPS beat(12)9
Avg EPS beat(12)7.81%
EPS beat(16)13
Avg EPS beat(16)8.55%
Revenue beat(2)2
Avg Revenue beat(2)5.12%
Min Revenue beat(2)4.11%
Max Revenue beat(2)6.12%
Revenue beat(4)3
Avg Revenue beat(4)1.84%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)6.12%
Revenue beat(8)3
Avg Revenue beat(8)0.14%
Revenue beat(12)6
Avg Revenue beat(12)0.6%
Revenue beat(16)9
Avg Revenue beat(16)0.75%
PT rev (1m)5.5%
PT rev (3m)19.62%
EPS NQ rev (1m)2%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)0.97%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)4.06%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)3.21%
Valuation
Industry RankSector Rank
PE 36.37
Fwd PE 30.19
P/S 4.78
P/FCF 43.33
P/OCF 27.51
P/B 15.15
P/tB 20.49
EV/EBITDA 23.54
EPS(TTM)19.08
EY2.75%
EPS(NY)22.98
Fwd EY3.31%
FCF(TTM)16.02
FCFY2.31%
OCF(TTM)25.23
OCFY3.64%
SpS145.26
BVpS45.82
TBVpS33.86
PEG (NY)1.78
PEG (5Y)1.42
Graham Number140.25
Profitability
Industry RankSector Rank
ROA 9.01%
ROE 41.67%
ROCE 20.38%
ROIC 14.63%
ROICexc 17.17%
ROICexgc 19%
OM 18.7%
PM (TTM) 13.14%
GM 33.87%
FCFM 11.03%
ROA(3y)11.04%
ROA(5y)9.83%
ROE(3y)50.02%
ROE(5y)46.34%
ROIC(3y)17.94%
ROIC(5y)15.44%
ROICexc(3y)20.54%
ROICexc(5y)17.76%
ROICexgc(3y)23.01%
ROICexgc(5y)20.09%
ROCE(3y)24.9%
ROCE(5y)21.59%
ROICexgc growth 3Y2.45%
ROICexgc growth 5Y10.46%
ROICexc growth 3Y3.44%
ROICexc growth 5Y12.35%
OM growth 3Y4.3%
OM growth 5Y7.05%
PM growth 3Y5.22%
PM growth 5Y12.85%
GM growth 3Y3.16%
GM growth 5Y2.11%
F-Score6
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Debt/EBITDA 2.43
Cap/Depr 189.48%
Cap/Sales 6.34%
Interest Coverage 250
Cash Conversion 78.78%
Profit Quality 83.89%
Current Ratio 1.44
Quick Ratio 0.94
Altman-Z 4.74
F-Score6
WACC9.3%
ROIC/WACC1.57
Cap/Depr(3y)161.01%
Cap/Depr(5y)141.05%
Cap/Sales(3y)5.3%
Cap/Sales(5y)5.03%
Profit Quality(3y)86.79%
Profit Quality(5y)82.05%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.88%
EPS 3Y10.14%
EPS 5Y25.66%
EPS Q2Q%0.39%
EPS Next Y20.46%
EPS Next 2Y20.74%
EPS Next 3Y19.31%
EPS Next 5Y19.9%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year11.58%
Revenue Next 2Y10.09%
Revenue Next 3Y8.89%
Revenue Next 5Y7.51%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year32.81%
EBIT Next 3Y20.79%
EBIT Next 5Y19.31%
FCF growth 1Y-15.5%
FCF growth 3Y12.99%
FCF growth 5Y12.09%
OCF growth 1Y-2.46%
OCF growth 3Y14.77%
OCF growth 5Y13.16%

CATERPILLAR INC / CAT Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CATERPILLAR INC (CAT) stock?

ChartMill assigns a fundamental rating of 5 / 10 to CAT.


What is the valuation status of CATERPILLAR INC (CAT) stock?

ChartMill assigns a valuation rating of 2 / 10 to CATERPILLAR INC (CAT). This can be considered as Overvalued.


What is the profitability of CAT stock?

CATERPILLAR INC (CAT) has a profitability rating of 8 / 10.


What is the valuation of CATERPILLAR INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CATERPILLAR INC (CAT) is 36.37 and the Price/Book (PB) ratio is 15.15.


Can you provide the expected EPS growth for CAT stock?

The Earnings per Share (EPS) of CATERPILLAR INC (CAT) is expected to grow by 20.46% in the next year.