CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAT - US1491231015 - Common Stock
645.38 USD
+16.38 (+2.6%)
652.09 USD
+6.71 (+1.04%)
CAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. CAT scores excellent on profitability, but there are some minor concerns on its financial health. CAT 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 CAT was profitable.
- 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's Return On Assets of 9.89% is amongst the best of the industry. CAT outperforms 80.30% of its industry peers.
- CAT has a better Return On Equity (44.89%) than 96.97% of its industry peers.
- The Return On Invested Capital of CAT (16.47%) is better than 92.42% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CAT is significantly above the industry average of 10.24%.
| 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
- The Profit Margin of CAT (14.34%) is better than 84.85% of its industry peers.
- In the last couple of years the Profit Margin of CAT has grown nicely.
- CAT has a better Operating Margin (19.93%) than 89.39% of its industry peers.
- In the last couple of years the Operating Margin of CAT has grown nicely.
- CAT has a better Gross Margin (35.53%) than 65.91% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CAT is creating value.
- Compared to 1 year ago, CAT has less shares outstanding
- 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.
2.2 Solvency
- An Altman-Z score of 4.76 indicates that CAT is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.76, CAT is doing good in the industry, outperforming 70.45% of the companies in the same industry.
- CAT has a debt to FCF ratio of 4.34. This is a neutral value as CAT would need 4.34 years to pay back of 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.
- The Debt to Equity ratio of CAT (1.56) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.76 |
ROIC/WACC1.72
WACC9.6%
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.
- CAT has a Quick Ratio of 1.38. 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 has a worse Quick ratio (0.86) than 73.48% 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 CAT 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.
- The Revenue has decreased by -1.51% in the past 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
- CAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.73% yearly.
- The Revenue is expected to grow by 4.38% on average over the next years.
EPS Next Y-13.6%
EPS Next 2Y1.27%
EPS Next 3Y6.79%
EPS Next 5Y14.73%
Revenue Next Year2.29%
Revenue Next 2Y5.13%
Revenue Next 3Y6.02%
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
- With a Price/Earnings ratio of 33.86, CAT can be considered very expensive at the moment.
- CAT's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (27.32), we can say CAT is valued slightly more expensively.
- A Price/Forward Earnings ratio of 28.74 indicates a quite expensive valuation of CAT.
- CAT's Price/Forward Earnings is on the same level as the industry average.
- CAT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.86 | ||
| Fwd PE | 28.74 |
4.2 Price Multiples
- 64.39% of the companies in the same industry are cheaper than CAT, based on the Enterprise Value to EBITDA ratio.
- CAT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.54 | ||
| EV/EBITDA | 21.94 |
4.3 Compensation for Growth
- The excellent profitability rating of CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.31
EPS Next 2Y1.27%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.93%, CAT is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.98, CAT pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.93, CAT pays less dividend than the S&P500 average, which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.41%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- CAT pays out 29.36% of its income as dividend. This is a sustainable payout ratio.
- CAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.36%
EPS Next 2Y1.27%
EPS Next 3Y6.79%
645.38
+16.38 (+2.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)01-29 2026-01-29/bmo
Inst Owners74.11%
Inst Owner Change-0.14%
Ins Owners0.17%
Ins Owner Change-3.28%
Market Cap302.02B
Revenue(TTM)64.67B
Net Income(TTM)9.27B
Analysts74.55
Price Target608.63 (-5.69%)
Short Float %1.2%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend5.41
Dividend Growth(5Y)7.41%
DP29.36%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-20 2026-01-20 (1.51)
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)2.11%
PT rev (3m)33.57%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)8.42%
EPS NY rev (1m)0%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)3.15%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.86 | ||
| Fwd PE | 28.74 | ||
| P/S | 4.67 | ||
| P/FCF | 31.54 | ||
| P/OCF | 22.28 | ||
| P/B | 14.62 | ||
| P/tB | 20.07 | ||
| EV/EBITDA | 21.94 |
EPS(TTM)19.06
EY2.95%
EPS(NY)22.46
Fwd EY3.48%
FCF(TTM)20.46
FCFY3.17%
OCF(TTM)28.97
OCFY4.49%
SpS138.19
BVpS44.14
TBVpS32.16
PEG (NY)N/A
PEG (5Y)2.31
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 | 4.76 |
F-Score5
WACC9.6%
ROIC/WACC1.72
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 Year2.29%
Revenue Next 2Y5.13%
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 33.86 and the Price/Book (PB) ratio is 14.62.
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.