CATERPILLAR INC (CAT) Fundamental Analysis & Valuation

NYSE:CAT • US1491231015

Current stock price

695.4 USD
-7.79 (-1.11%)
At close:
694 USD
-1.4 (-0.2%)
After Hours:

This CAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CAT Profitability Analysis

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.
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

  • CAT's Return On Assets of 9.01% is fine compared to the rest of the industry. CAT outperforms 79.39% of its industry peers.
  • With an excellent Return On Equity value of 41.67%, CAT belongs to the best of the industry, outperforming 96.95% of the companies in the same industry.
  • CAT has a better Return On Invested Capital (14.63%) than 89.31% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CAT is significantly above the industry average of 10.17%.
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's Profit Margin of 13.14% is amongst the best of the industry. CAT outperforms 80.92% of its industry peers.
  • CAT's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 18.70%, CAT belongs to the top of the industry, outperforming 87.02% of the companies in the same industry.
  • CAT's Operating Margin has improved in the last couple of years.
  • CAT's Gross Margin of 33.87% is in line compared to the rest of the industry. CAT outperforms 58.78% of 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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4

2. CAT Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAT is still creating some value.
  • Compared to 1 year ago, CAT has less shares outstanding
  • Compared to 5 years ago, CAT has less shares outstanding
  • CAT has a worse debt/assets ratio than last year.
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 4.77. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of CAT (4.77) is better than 72.52% of its industry peers.
  • The Debt to FCF ratio of CAT is 5.81, which is a neutral value as it means it would take CAT, 5.81 years of fcf income to pay off all of its debts.
  • CAT has a Debt to FCF ratio of 5.81. This is comparable to the rest of the industry: CAT outperforms 51.15% of its industry peers.
  • A Debt/Equity ratio of 1.70 is on the high side and indicates that CAT has dependencies on debt financing.
  • CAT's Debt to Equity ratio of 1.70 is on the low side compared to the rest of the industry. CAT is outperformed by 85.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 4.77
ROIC/WACC1.46
WACC10.03%
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

  • CAT has a Current Ratio of 1.44. 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 1.44. This is in the lower half of the industry: CAT underperforms 73.28% of its industry peers.
  • A Quick Ratio of 0.94 indicates that CAT may have some problems paying its short term obligations.
  • CAT has a worse Quick ratio (0.94) than 68.70% of its industry peers.
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. CAT Growth Analysis

3.1 Past

  • The earnings per share for CAT have decreased strongly by -12.88% in the last year.
  • The Earnings Per Share has been growing by 25.66% on average over the past years. This is a very strong growth
  • 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

  • Based on estimates for the next years, CAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.90% on average per year.
  • CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.51% yearly.
EPS Next Y20.46%
EPS Next 2Y20.74%
EPS Next 3Y19.31%
EPS Next 5Y19.9%
Revenue Next Year11.77%
Revenue Next 2Y10.2%
Revenue Next 3Y9%
Revenue Next 5Y7.51%

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 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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1

4. CAT Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 36.45, the valuation of CAT can be described as expensive.
  • CAT's Price/Earnings ratio is a bit more expensive when compared to the industry. CAT is more expensive than 62.60% of the companies in the same industry.
  • CAT is valuated rather expensively when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 30.26, the valuation of CAT can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 62.60% of the companies listed in the same industry.
  • CAT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 36.45
Fwd PE 30.26
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

  • Based on the Enterprise Value to EBITDA ratio, CAT is valued a bit more expensive than 68.70% of the companies in the same industry.
  • CAT's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CAT is more expensive than 60.31% of the companies in the same industry.
Industry RankSector Rank
P/FCF 43.41
EV/EBITDA 23.83
CAT Per share dataCAT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

  • CAT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • 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 19.31% in the coming years.
PEG (NY)1.78
PEG (5Y)1.42
EPS Next 2Y20.74%
EPS Next 3Y19.31%

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6

5. CAT Dividend Analysis

5.1 Amount

  • CAT has a yearly dividend return of 0.88%, which is pretty low.
  • CAT's Dividend Yield is a higher than the industry average which is at 1.22.
  • With a Dividend Yield of 0.88, CAT pays less dividend than the S&P500 average, which is at 1.90.
Industry RankSector Rank
Dividend Yield 0.88%

5.2 History

  • On average, the dividend of CAT grows each year by 7.25%, which is quite nice.
  • 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)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

  • 30.94% 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.
DP30.94%
EPS Next 2Y20.74%
EPS Next 3Y19.31%
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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CAT Fundamentals: All Metrics, Ratios and Statistics

CATERPILLAR INC

NYSE:CAT (3/27/2026, 8:04:16 PM)

After market: 694 -1.4 (-0.2%)

695.4

-7.79 (-1.11%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners72.31%
Inst Owner Change-3.14%
Ins Owners0.17%
Ins Owner Change0.52%
Market Cap323.56B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.12
Price Target713.02 (2.53%)
Short Float %1.79%
Short Ratio2.83
Dividend
Industry RankSector Rank
Dividend Yield 0.88%
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)5.5%
PT rev (3m)19.62%
EPS NQ rev (1m)2.03%
EPS NQ rev (3m)4.41%
EPS NY rev (1m)0.97%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)4.12%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)3.39%
Valuation
Industry RankSector Rank
PE 36.45
Fwd PE 30.26
P/S 4.79
P/FCF 43.41
P/OCF 27.56
P/B 15.18
P/tB 20.54
EV/EBITDA 23.83
EPS(TTM)19.08
EY2.74%
EPS(NY)22.98
Fwd EY3.31%
FCF(TTM)16.02
FCFY2.3%
OCF(TTM)25.23
OCFY3.63%
SpS145.26
BVpS45.82
TBVpS33.86
PEG (NY)1.78
PEG (5Y)1.42
Graham Number140.25
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 4.77
F-Score6
WACC10.03%
ROIC/WACC1.46
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 Y20.46%
EPS Next 2Y20.74%
EPS Next 3Y19.31%
EPS Next 5Y19.9%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year11.77%
Revenue Next 2Y10.2%
Revenue Next 3Y9%
Revenue Next 5Y7.51%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year32.81%
EBIT Next 3Y20.79%
EBIT Next 5Y19.31%
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 Fundamental Analysis 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 36.45 and the Price/Book (PB) ratio is 15.18.


Can you provide the expected EPS growth for CAT stock?

The Earnings per Share (EPS) of CATERPILLAR INC (CAT) is expected to grow by 20.46% in the next year.