CATERPILLAR INC (CAT)
US1491231015 - Common Stock
We assign a fundamental rating of 6 out of 10 to CAT. CAT was compared to 131 industry peers in the Machinery industry. CAT scores excellent on profitability, but there are some minor concerns on its financial health. CAT is valued correctly, but it does not seem to be growing.
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.
CAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAT has a Return On Assets of 12.38%. This is amongst the best in the industry. CAT outperforms 88.19% of its industry peers.
CAT's Return On Equity of 55.04% is amongst the best of the industry. CAT outperforms 96.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.04%, CAT belongs to the top of the industry, outperforming 96.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAT is above the industry average of 11.01%.
The last Return On Invested Capital (20.04%) for CAT is above the 3 year average (14.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 55.04% | ||
| ROIC | 20.04% |
ROA(3y)9.28%
ROA(5y)7.89%
ROE(3y)44.88%
ROE(5y)39.19%
ROIC(3y)14.39%
ROIC(5y)12.73%
1.3 Margins
CAT has a Profit Margin of 16.26%. This is amongst the best in the industry. CAT outperforms 92.13% of its industry peers.
In the last couple of years the Profit Margin of CAT has grown nicely.
CAT has a better Operating Margin (22.74%) than 94.49% of its industry peers.
CAT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.93%, CAT is in the better half of the industry, outperforming 70.87% of the companies in the same industry.
CAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.74% | ||
| PM (TTM) | 16.26% | ||
| GM | 37.93% |
OM growth 3Y18.73%
OM growth 5Y5.1%
PM growth 3Y28.99%
PM growth 5Y6.53%
GM growth 3Y6.13%
GM growth 5Y2.15%
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.
CAT has a better debt/assets ratio than last year.
2.2 Solvency
CAT has an Altman-Z score of 4.14. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.14, CAT is in the better half of the industry, outperforming 66.14% of the companies in the same industry.
The Debt to FCF ratio of CAT is 3.94, which is a good value as it means it would take CAT, 3.94 years of fcf income to pay off all of its debts.
CAT has a Debt to FCF ratio of 3.94. This is comparable to the rest of the industry: CAT outperforms 59.06% of its industry peers.
CAT has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CAT (1.52) is worse than 88.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 4.14 |
ROIC/WACC2.26
WACC8.87%
2.3 Liquidity
CAT has a Current Ratio of 1.40. This is a normal value and indicates that CAT is financially healthy and should not expect problems in meeting its short term obligations.
CAT's Current ratio of 1.40 is on the low side compared to the rest of the industry. CAT is outperformed by 79.53% 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 75.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.59%, which is quite good.
The Earnings Per Share has been growing by 13.62% on average over the past years. This is quite good.
CAT shows a decrease in Revenue. In the last year, the revenue decreased by -1.39%.
CAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.15% yearly.
EPS 1Y (TTM)8.59%
EPS 3Y51.58%
EPS 5Y13.62%
EPS Q2Q%-6.34%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y17.11%
Revenue growth 5Y4.15%
Sales Q2Q%-4.19%
3.2 Future
The Earnings Per Share is expected to decrease by -1.05% on average over the next years.
The Revenue is expected to grow by 4.17% on average over the next years.
EPS Next Y4.01%
EPS Next 2Y2.71%
EPS Next 3Y4.28%
EPS Next 5Y-1.05%
Revenue Next Year-3.3%
Revenue Next 2Y-1.27%
Revenue Next 3Y0.88%
Revenue Next 5Y4.17%
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.72, which indicates a rather expensive current valuation of CAT.
Based on the Price/Earnings ratio, CAT is valued a bit cheaper than the industry average as 74.02% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (28.96), we can say CAT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.41, the valuation of CAT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAT indicates a somewhat cheap valuation: CAT is cheaper than 70.87% of the companies listed in the same industry.
CAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 17.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAT is valued a bit cheaper than the industry average as 63.78% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAT indicates a somewhat cheap valuation: CAT is cheaper than 76.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.57 | ||
| EV/EBITDA | 12.69 |
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.
CAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.41
PEG (5Y)1.3
EPS Next 2Y2.71%
EPS Next 3Y4.28%
5. Dividend
5.1 Amount
CAT has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
CAT's Dividend Yield is rather good when compared to the industry average which is at 1.54. CAT pays more dividend than 80.31% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.23, CAT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
On average, the dividend of CAT grows each year by 8.72%, 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)8.72%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
CAT pays out 24.61% of its income as dividend. This is a sustainable payout ratio.
DP24.61%
EPS Next 2Y2.71%
EPS Next 3Y4.28%
CATERPILLAR INC
NYSE:CAT (11/21/2024, 8:17:17 PM)
After market: 389.59 0 (0%)389.59
+8.09 (+2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap188.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 17.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.41
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 55.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.74% | ||
| PM (TTM) | 16.26% | ||
| GM | 37.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.59%
EPS 3Y51.58%
EPS 5Y
EPS Q2Q%
EPS Next Y4.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y17.11%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y