CATERPILLAR INC (CAT) Stock Fundamental Analysis

NYSE:CAT • US1491231015

742.83 USD
-10.1 (-1.34%)
At close: Feb 27, 2026
740 USD
-2.83 (-0.38%)
After Hours: 2/27/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall CAT gets a fundamental rating of 5 out of 10. We evaluated CAT against 130 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.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year CAT was profitable.
  • In the past year CAT had a positive cash flow from operations.
  • Each year in the past 5 years CAT has been profitable.
  • Each year in the past 5 years CAT had a positive operating cash flow.
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

  • The Return On Assets of CAT (9.01%) is better than 78.46% of its industry peers.
  • Looking at the Return On Equity, with a value of 41.67%, CAT belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
  • CAT's Return On Invested Capital of 14.63% is amongst the best of the industry. CAT outperforms 86.92% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CAT is significantly above the industry average of 10.27%.
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

  • CAT has a Profit Margin of 13.14%. This is amongst the best in the industry. CAT outperforms 82.31% of its industry peers.
  • CAT's Profit Margin has improved in the last couple of years.
  • CAT has a better Operating Margin (18.70%) than 85.38% of its industry peers.
  • CAT's Operating Margin has improved in the last couple of years.
  • CAT has a Gross Margin (33.87%) which is in line with its industry peers.
  • CAT's Gross Margin has improved in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
  • Compared to 1 year ago, CAT has a worse debt to assets ratio.
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 4.97. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.97, CAT is doing good in the industry, outperforming 75.38% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 5.81, CAT is in line with its industry, outperforming 48.46% of the companies in the same industry.
  • A Debt/Equity ratio of 1.70 is on the high side and indicates that CAT has dependencies on debt financing.
  • CAT has a Debt to Equity ratio of 1.70. This is amonst the worse of the industry: CAT underperforms 84.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 4.97
ROIC/WACC1.62
WACC9.04%
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

  • A Current Ratio of 1.44 indicates that CAT should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.44, CAT is doing worse than 74.62% of the companies in the same industry.
  • A Quick Ratio of 0.94 indicates that CAT may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.94, CAT is doing worse than 69.23% of the companies in the same industry.
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. Growth

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.
  • The Revenue has been growing by 10.12% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 20.21% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 7.04% on average over the next years.
EPS Next Y19.3%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
EPS Next 5Y20.21%
Revenue Next Year11.6%
Revenue Next 2Y10.13%
Revenue Next 3Y9.08%
Revenue Next 5Y7.04%

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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Find the best growth stocksShow best growing peers

1

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 38.93, CAT can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 63.08% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.10, CAT is valued a bit more expensive.
  • With a Price/Forward Earnings ratio of 32.63, CAT can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than 63.08% of the companies in the same industry.
  • CAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 38.93
Fwd PE 32.63
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

  • CAT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CAT is more expensive than 66.15% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CAT is valued a bit more expensive than the industry average as 62.31% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 46.64
EV/EBITDA 25.51
CAT Per share dataCAT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAT does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of CAT may justify a higher PE ratio.
  • A more expensive valuation may be justified as CAT's earnings are expected to grow with 17.39% in the coming years.
PEG (NY)2.02
PEG (5Y)1.52
EPS Next 2Y20.58%
EPS Next 3Y17.39%

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

6

5. Dividend

5.1 Amount

  • CAT has a yearly dividend return of 0.79%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.19, CAT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, CAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.79%

5.2 History

  • On average, the dividend of CAT grows each year by 7.25%, 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)7.25%
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.
  • CAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.94%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
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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CATERPILLAR INC

NYSE:CAT (2/27/2026, 8:04:00 PM)

After market: 740 -2.83 (-0.38%)

742.83

-10.1 (-1.34%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners74.11%
Inst Owner Change-3.2%
Ins Owners0.17%
Ins Owner Change-1.08%
Market Cap347.63B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.55
Price Target675.88 (-9.01%)
Short Float %1.33%
Short Ratio2.22
Dividend
Industry RankSector Rank
Dividend Yield 0.79%
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)11.05%
PT rev (3m)14.6%
EPS NQ rev (1m)1.34%
EPS NQ rev (3m)3.23%
EPS NY rev (1m)0.91%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)3.93%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)3.13%
Revenue NY rev (3m)5.61%
Valuation
Industry RankSector Rank
PE 38.93
Fwd PE 32.63
P/S 5.14
P/FCF 46.64
P/OCF 29.61
P/B 16.31
P/tB 22.06
EV/EBITDA 25.51
EPS(TTM)19.08
EY2.57%
EPS(NY)22.76
Fwd EY3.06%
FCF(TTM)15.93
FCFY2.14%
OCF(TTM)25.08
OCFY3.38%
SpS144.43
BVpS45.55
TBVpS33.67
PEG (NY)2.02
PEG (5Y)1.52
Graham Number139.84
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 4.97
F-Score6
WACC9.04%
ROIC/WACC1.62
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 Y19.3%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
EPS Next 5Y20.21%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year11.6%
Revenue Next 2Y10.13%
Revenue Next 3Y9.08%
Revenue Next 5Y7.04%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year31.87%
EBIT Next 3Y29.93%
EBIT Next 5Y20.38%
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 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 1 / 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 38.93 and the Price/Book (PB) ratio is 16.31.


Can you provide the expected EPS growth for CAT stock?

The Earnings per Share (EPS) of CATERPILLAR INC (CAT) is expected to grow by 19.3% in the next year.