CATERPILLAR INC (CAT)
US1491231015 - Common Stock
Taking everything into account, CAT scores 6 out of 10 in our fundamental rating. CAT was compared to 132 industry peers in the Machinery industry. CAT scores excellent on profitability, but there are some minor concerns on its financial health. CAT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CAT had positive earnings in the past year.
CAT had a positive operating cash flow in the past year.
Each year in the past 5 years CAT has been profitable.
In the past 5 years CAT always reported a positive cash flow from operatings.
1.2 Ratios
CAT has a better Return On Assets (12.38%) than 87.69% of its industry peers.
The Return On Equity of CAT (55.04%) is better than 96.92% of its industry peers.
With an excellent Return On Invested Capital value of 20.04%, CAT belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAT is above the industry average of 11.13%.
The 3 year average ROIC (14.39%) for CAT is below the current ROIC(20.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 55.04% | ||
| ROIC | 20.04% |
ROA(3y)9.28%
ROA(5y)7.89%
ROE(3y)44.88%
ROE(5y)39.19%
ROIC(3y)14.39%
ROIC(5y)12.73%
1.3 Margins
CAT has a better Profit Margin (16.26%) than 91.54% of its industry peers.
CAT's Profit Margin has improved in the last couple of years.
CAT's Operating Margin of 22.74% is amongst the best of the industry. CAT outperforms 94.62% of its industry peers.
In the last couple of years the Operating Margin of CAT has grown nicely.
CAT's Gross Margin of 37.93% is fine compared to the rest of the industry. CAT outperforms 70.00% of its industry peers.
In the last couple of years the Gross Margin of CAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.74% | ||
| PM (TTM) | 16.26% | ||
| GM | 37.93% |
OM growth 3Y18.73%
OM growth 5Y5.1%
PM growth 3Y28.99%
PM growth 5Y6.53%
GM growth 3Y6.13%
GM growth 5Y2.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CAT 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.
Compared to 1 year ago, CAT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.03 indicates that CAT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.03, CAT is doing good in the industry, outperforming 68.46% of the companies in the same industry.
CAT has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as CAT would need 3.94 years to pay back of all of its debts.
The Debt to FCF ratio of CAT (3.94) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.52 is on the high side and indicates that CAT has dependencies on debt financing.
The Debt to Equity ratio of CAT (1.52) is worse than 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 4.03 |
ROIC/WACC2.31
WACC8.66%
2.3 Liquidity
CAT has a Current Ratio of 1.40. This is a normal value and indicates that CAT is financially healthy and should not expect problems in meeting its short term obligations.
CAT has a Current ratio of 1.40. This is amonst the worse of the industry: CAT underperforms 80.00% of its industry peers.
CAT has a Quick Ratio of 1.40. 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 0.86 is on the low side compared to the rest of the industry. CAT is outperformed by 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.59% over the past year.
CAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.62% yearly.
The Revenue has decreased by -1.39% in the past year.
CAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.15% yearly.
EPS 1Y (TTM)8.59%
EPS 3Y51.58%
EPS 5Y13.62%
EPS Q2Q%-6.34%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y17.11%
Revenue growth 5Y4.15%
Sales Q2Q%-4.19%
3.2 Future
Based on estimates for the next years, CAT will show a small growth in Earnings Per Share. The EPS will grow by 0.66% on average per year.
CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
EPS Next Y4.03%
EPS Next 2Y2.64%
EPS Next 3Y4.94%
EPS Next 5Y0.66%
Revenue Next Year-3.56%
Revenue Next 2Y-1.39%
Revenue Next 3Y0.79%
Revenue Next 5Y4.17%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CAT is valuated correctly with a Price/Earnings ratio of 16.62.
CAT's Price/Earnings ratio is a bit cheaper when compared to the industry. CAT is cheaper than 74.62% of the companies in the same industry.
CAT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.17.
With a Price/Forward Earnings ratio of 16.35, CAT is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAT indicates a somewhat cheap valuation: CAT is cheaper than 71.54% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.68. CAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAT is valued a bit cheaper than the industry average as 66.92% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CAT is valued a bit cheaper than the industry average as 79.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.35 | ||
| EV/EBITDA | 12.02 |
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 CAT may justify a higher PE ratio.
PEG (NY)4.12
PEG (5Y)1.22
EPS Next 2Y2.64%
EPS Next 3Y4.94%
5. Dividend
5.1 Amount
CAT has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.71, CAT pays a bit more dividend than its industry peers.
CAT's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of CAT is nicely growing with an annual growth rate of 8.72%!
CAT has been paying a dividend for at least 10 years, so it has a reliable track record.
CAT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.72%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
24.61% of the earnings are spent on dividend by CAT. This is a low number and sustainable payout ratio.
The dividend of CAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.61%
EPS Next 2Y2.64%
EPS Next 3Y4.94%
CATERPILLAR INC
NYSE:CAT (12/23/2024, 1:46:08 PM)
365.39
-0.65 (-0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.55%
Inst Owner Change0.74%
Ins Owners0.17%
Ins Owner Change0.18%
Market Cap176.41B
Analysts68.67
Price Target388.32 (6.28%)
Short Float %1.84%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Dividend Growth(5Y)8.72%
DP24.61%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.49%
Min EPS beat(2)-4.08%
Max EPS beat(2)7.07%
EPS beat(4)3
Avg EPS beat(4)4.97%
Min EPS beat(4)-4.08%
Max EPS beat(4)8.92%
EPS beat(8)7
Avg EPS beat(8)10.94%
EPS beat(12)11
Avg EPS beat(12)11.96%
EPS beat(16)15
Avg EPS beat(16)16.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)-0.86%
Revenue beat(8)4
Avg Revenue beat(8)0.54%
Revenue beat(12)7
Avg Revenue beat(12)0.87%
Revenue beat(16)9
Avg Revenue beat(16)0.96%
PT rev (1m)6.41%
PT rev (3m)12.15%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-4.07%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-1.41%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-5.21%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 16.35 | ||
| P/S | 2.69 | ||
| P/FCF | 18.35 | ||
| P/OCF | 13.95 | ||
| P/B | 9.09 | ||
| P/tB | 12.94 | ||
| EV/EBITDA | 12.02 |
EPS(TTM)21.99
EY6.02%
EPS(NY)22.34
Fwd EY6.11%
FCF(TTM)19.91
FCFY5.45%
OCF(TTM)26.19
OCFY7.17%
SpS136.01
BVpS40.18
TBVpS28.24
PEG (NY)4.12
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 55.04% | ||
| ROCE | 27.62% | ||
| ROIC | 20.04% | ||
| ROICexc | 22.2% | ||
| ROICexgc | 24.96% | ||
| OM | 22.74% | ||
| PM (TTM) | 16.26% | ||
| GM | 37.93% | ||
| FCFM | 14.64% |
ROA(3y)9.28%
ROA(5y)7.89%
ROE(3y)44.88%
ROE(5y)39.19%
ROIC(3y)14.39%
ROIC(5y)12.73%
ROICexc(3y)16.56%
ROICexc(5y)14.78%
ROICexgc(3y)18.95%
ROICexgc(5y)17.17%
ROCE(3y)20.42%
ROCE(5y)17.93%
ROICexcg growth 3Y31.38%
ROICexcg growth 5Y7.16%
ROICexc growth 3Y34.15%
ROICexc growth 5Y8.47%
OM growth 3Y18.73%
OM growth 5Y5.1%
PM growth 3Y28.99%
PM growth 5Y6.53%
GM growth 3Y6.13%
GM growth 5Y2.15%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 141.48% | ||
| Cap/Sales | 4.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.06% | ||
| Profit Quality | 90.03% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 4.03 |
F-Score6
WACC8.66%
ROIC/WACC2.31
Cap/Depr(3y)122.15%
Cap/Depr(5y)111.4%
Cap/Sales(3y)4.61%
Cap/Sales(5y)4.77%
Profit Quality(3y)81.55%
Profit Quality(5y)90.96%
High Growth Momentum
Growth
EPS 1Y (TTM)8.59%
EPS 3Y51.58%
EPS 5Y13.62%
EPS Q2Q%-6.34%
EPS Next Y4.03%
EPS Next 2Y2.64%
EPS Next 3Y4.94%
EPS Next 5Y0.66%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y17.11%
Revenue growth 5Y4.15%
Sales Q2Q%-4.19%
Revenue Next Year-3.56%
Revenue Next 2Y-1.39%
Revenue Next 3Y0.79%
Revenue Next 5Y4.17%
EBIT growth 1Y4.68%
EBIT growth 3Y39.05%
EBIT growth 5Y9.47%
EBIT Next Year15.95%
EBIT Next 3Y5.57%
EBIT Next 5Y0.28%
FCF growth 1Y155.46%
FCF growth 3Y32.48%
FCF growth 5Y21.88%
OCF growth 1Y96.38%
OCF growth 3Y26.75%
OCF growth 5Y14.46%