CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - NYSE:CAT - US1491231015 - Common Stock
466.54 USD
-0.42 (-0.09%)
466.54 USD
0 (0%)
CAT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. While CAT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, CAT is valued expensive at the moment. CAT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAT had positive earnings in the past year.
In the past year CAT had a positive cash flow from operations.
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 (10.45%) than 82.81% of its industry peers.
CAT has a Return On Equity of 50.57%. This is amongst the best in the industry. CAT outperforms 97.66% of its industry peers.
CAT's Return On Invested Capital of 17.25% is amongst the best of the industry. CAT outperforms 92.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAT is significantly above the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 50.57% | ||
| ROIC | 17.25% |
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 14.95%. This is amongst the best in the industry. CAT outperforms 89.84% of its industry peers.
In the last couple of years the Profit Margin of CAT has grown nicely.
CAT has a better Operating Margin (20.57%) than 90.63% of its industry peers.
CAT's Operating Margin has improved in the last couple of years.
The Gross Margin of CAT (36.53%) is better than 67.19% of its industry peers.
CAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.57% | ||
| PM (TTM) | 14.95% | ||
| GM | 36.53% |
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
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
Compared to 5 years ago, CAT has less shares outstanding
Compared to 1 year ago, CAT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.13 indicates that CAT is not in any danger for bankruptcy at the moment.
The Altman-Z score of CAT (4.13) is better than 68.75% of its industry peers.
CAT has a debt to FCF ratio of 5.26. This is a neutral value as CAT would need 5.26 years to pay back of all of its debts.
CAT's Debt to FCF ratio of 5.26 is in line compared to the rest of the industry. CAT outperforms 46.88% of its industry peers.
CAT has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
CAT has a worse Debt to Equity ratio (1.74) than 85.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 4.13 |
ROIC/WACC1.77
WACC9.73%
2.3 Liquidity
A Current Ratio of 1.34 indicates that CAT should not have too much problems paying its short term obligations.
CAT has a Current ratio of 1.34. This is amonst the worse of the industry: CAT underperforms 81.25% of its industry peers.
CAT has a Quick Ratio of 1.34. 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 Quick ratio of 0.81. This is in the lower half of the industry: CAT underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
CAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.70%.
CAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.64% yearly.
CAT shows a decrease in Revenue. In the last year, the revenue decreased by -4.87%.
The Revenue has been growing slightly by 3.79% on average over the past years.
EPS 1Y (TTM)-13.7%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-21.2%
Revenue 1Y (TTM)-4.87%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-0.72%
3.2 Future
Based on estimates for the next years, CAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.23% on average per year.
The Revenue is expected to grow by 5.18% on average over the next years.
EPS Next Y-15.69%
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
EPS Next 5Y10.23%
Revenue Next Year-0.8%
Revenue Next 2Y2.69%
Revenue Next 3Y3.5%
Revenue Next 5Y5.18%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.20, which indicates a rather expensive current valuation of CAT.
CAT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (27.38), we can say CAT is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.62, CAT is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as CAT.
CAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 21.62 |
4.2 Price Multiples
CAT's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 28.24 | ||
| EV/EBITDA | 16.44 |
4.3 Compensation for Growth
The excellent profitability rating of CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.65
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
5. Dividend
5.1 Amount
CAT has a Yearly Dividend Yield of 1.40%.
CAT's Dividend Yield is a higher than the industry average which is at 1.74.
Compared to an average S&P500 Dividend Yield of 2.38, CAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
The dividend of CAT is nicely growing with an annual growth rate of 7.41%!
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)7.41%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CAT pays out 28.60% 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.
DP28.6%
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
466.54
-0.42 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.2%
Inst Owner Change0.23%
Ins Owners0.19%
Ins Owner Change0.07%
Market Cap218.56B
Analysts75
Price Target450.69 (-3.4%)
Short Float %1.4%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend5.41
Dividend Growth(5Y)7.41%
DP28.6%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.88%
Min EPS beat(2)-4.57%
Max EPS beat(2)-3.19%
EPS beat(4)1
Avg EPS beat(4)-2.61%
Min EPS beat(4)-4.57%
Max EPS beat(4)1.39%
EPS beat(8)5
Avg EPS beat(8)3.44%
EPS beat(12)9
Avg EPS beat(12)8.74%
EPS beat(16)13
Avg EPS beat(16)9.79%
Revenue beat(2)1
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)0.9%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)0.9%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)6
Avg Revenue beat(12)0.25%
Revenue beat(16)8
Avg Revenue beat(16)0.25%
PT rev (1m)11.42%
PT rev (3m)19.54%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-4.2%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-1.95%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)1.89%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 21.62 | ||
| P/S | 3.46 | ||
| P/FCF | 28.24 | ||
| P/OCF | 19.22 | ||
| P/B | 11.71 | ||
| P/tB | 16.8 | ||
| EV/EBITDA | 16.44 |
EPS(TTM)19.28
EY4.13%
EPS(NY)21.58
Fwd EY4.62%
FCF(TTM)16.52
FCFY3.54%
OCF(TTM)24.28
OCFY5.2%
SpS134.77
BVpS39.83
TBVpS27.77
PEG (NY)N/A
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 50.57% | ||
| ROCE | 23.44% | ||
| ROIC | 17.25% | ||
| ROICexc | 18.97% | ||
| ROICexgc | 21.17% | ||
| OM | 20.57% | ||
| PM (TTM) | 14.95% | ||
| GM | 36.53% | ||
| FCFM | 12.26% |
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%
ROICexcg growth 3Y20.44%
ROICexcg 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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 165.74% | ||
| Cap/Sales | 5.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.93% | ||
| Profit Quality | 82.02% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 4.13 |
F-Score5
WACC9.73%
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)-13.7%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-21.2%
EPS Next Y-15.69%
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
EPS Next 5Y10.23%
Revenue 1Y (TTM)-4.87%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-0.72%
Revenue Next Year-0.8%
Revenue Next 2Y2.69%
Revenue Next 3Y3.5%
Revenue Next 5Y5.18%
EBIT growth 1Y-14.31%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-1.03%
EBIT Next 3Y3.39%
EBIT Next 5Y10.41%
FCF growth 1Y6.61%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y13.25%
OCF growth 3Y18.69%
OCF growth 5Y11.73%