CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAT - US1491231015 - Common Stock
625.62 USD
+8 (+1.3%)
We assign a fundamental rating of 5 out of 10 to CAT. 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. While showing a medium growth rate, CAT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CAT was profitable.
CAT had a positive operating cash flow in the past year.
CAT had positive earnings in each of the past 5 years.
In the past 5 years CAT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CAT (9.89%) is better than 80.30% of its industry peers.
Looking at the Return On Equity, with a value of 44.89%, CAT belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.47%, CAT belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAT is significantly above the industry average of 10.25%.
| 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
CAT has a Profit Margin of 14.34%. This is amongst the best in the industry. CAT outperforms 84.85% of its industry peers.
CAT's Profit Margin has improved in the last couple of years.
CAT has a Operating Margin of 19.93%. This is amongst the best in the industry. CAT outperforms 89.39% of its industry peers.
In the last couple of years the Operating Margin of CAT has grown nicely.
Looking at the Gross Margin, with a value of 35.53%, CAT is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
CAT'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
CAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CAT has less shares outstanding than it did 1 year ago.
CAT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CAT is higher compared to a year ago.
2.2 Solvency
CAT has an Altman-Z score of 4.66. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CAT (4.66) is better than 70.45% of its industry peers.
The Debt to FCF ratio of CAT is 4.34, which is a neutral value as it means it would take CAT, 4.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.34, CAT is in line with its industry, outperforming 57.58% of the companies in the same industry.
CAT has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.56, CAT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.66 |
ROIC/WACC1.77
WACC9.29%
2.3 Liquidity
A Current Ratio of 1.38 indicates that CAT should not have too much problems paying its short term obligations.
The Current ratio of CAT (1.38) is worse than 78.03% of its industry peers.
A Quick Ratio of 0.86 indicates that CAT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, CAT is doing worse than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.32%.
The Earnings Per Share has been growing by 14.64% on average over the past years. This is quite good.
CAT shows a decrease in Revenue. In the last year, the revenue decreased by -1.51%.
CAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
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
The Earnings Per Share is expected to grow by 14.73% on average over the next years. This is quite good.
CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
EPS Next Y-13.6%
EPS Next 2Y1.27%
EPS Next 3Y6.79%
EPS Next 5Y14.73%
Revenue Next Year2.36%
Revenue Next 2Y5.25%
Revenue Next 3Y6.02%
Revenue Next 5Y4.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
CAT is valuated quite expensively with a Price/Earnings ratio of 32.82.
Compared to the rest of the industry, the Price/Earnings ratio of CAT is on the same level as its industry peers.
CAT is valuated rather expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 27.86 indicates a quite expensive valuation of CAT.
Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than 60.61% of the companies in the same industry.
CAT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.82 | ||
| Fwd PE | 27.86 |
4.2 Price Multiples
CAT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CAT is more expensive than 64.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.58 | ||
| EV/EBITDA | 21.08 |
4.3 Compensation for Growth
The excellent profitability rating of CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.24
EPS Next 2Y1.27%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, CAT is not a good candidate for dividend investing.
CAT's Dividend Yield is a higher than the industry average which is at 0.80.
Compared to an average S&P500 Dividend Yield of 1.92, CAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
On average, the dividend of CAT grows each year by 7.41%, which is quite nice.
CAT has paid a dividend for at least 10 years, which is a reliable track record.
CAT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.41%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
29.36% 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 earnings are growing more, so the dividend growth is sustainable.
DP29.36%
EPS Next 2Y1.27%
EPS Next 3Y6.79%
NYSE:CAT (1/12/2026, 9:51:07 AM)
625.62
+8 (+1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.11%
Inst Owner Change-0.15%
Ins Owners0.17%
Ins Owner Change-2.81%
Market Cap292.78B
Revenue(TTM)64.67B
Net Income(TTM)9.27B
Analysts74.55
Price Target597.49 (-4.5%)
Short Float %1.53%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend5.41
Dividend Growth(5Y)7.41%
DP29.36%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.89%
Min EPS beat(2)-4.57%
Max EPS beat(2)8.35%
EPS beat(4)2
Avg EPS beat(4)0.5%
Min EPS beat(4)-4.57%
Max EPS beat(4)8.35%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)9
Avg EPS beat(12)7.46%
EPS beat(16)13
Avg EPS beat(16)9.09%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)0.9%
Max Revenue beat(2)4.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)4.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)9
Avg Revenue beat(16)0.61%
PT rev (1m)0.24%
PT rev (3m)31.13%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)7.66%
EPS NY rev (1m)0%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.82 | ||
| Fwd PE | 27.86 | ||
| P/S | 4.53 | ||
| P/FCF | 30.58 | ||
| P/OCF | 21.6 | ||
| P/B | 14.17 | ||
| P/tB | 19.46 | ||
| EV/EBITDA | 21.08 |
EPS(TTM)19.06
EY3.05%
EPS(NY)22.46
Fwd EY3.59%
FCF(TTM)20.46
FCFY3.27%
OCF(TTM)28.97
OCFY4.63%
SpS138.19
BVpS44.14
TBVpS32.16
PEG (NY)N/A
PEG (5Y)2.24
Graham Number137.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | 44.89% | ||
| ROCE | 22.33% | ||
| ROIC | 16.47% | ||
| ROICexc | 18.74% | ||
| ROICexgc | 20.88% | ||
| OM | 19.93% | ||
| PM (TTM) | 14.34% | ||
| GM | 35.53% | ||
| FCFM | 14.81% |
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%
ROICexgc growth 3Y20.44%
ROICexgc 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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 179.41% | ||
| Cap/Sales | 6.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.72% | ||
| Profit Quality | 103.26% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 4.66 |
F-Score5
WACC9.29%
ROIC/WACC1.77
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)-13.32%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-4.26%
EPS Next Y-13.6%
EPS Next 2Y1.27%
EPS Next 3Y6.79%
EPS Next 5Y14.73%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%9.51%
Revenue Next Year2.36%
Revenue Next 2Y5.25%
Revenue Next 3Y6.02%
Revenue Next 5Y4.38%
EBIT growth 1Y-13.68%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-1.19%
EBIT Next 3Y9.09%
EBIT Next 5Y15.12%
FCF growth 1Y10.37%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y16.65%
OCF growth 3Y18.69%
OCF growth 5Y11.73%
CATERPILLAR INC / CAT 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 9 / 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 32.82 and the Price/Book (PB) ratio is 14.17.
Can you provide the expected EPS growth for CAT stock?
The Earnings per Share (EPS) of CATERPILLAR INC (CAT) is expected to decline by -13.6% in the next year.