CATERPILLAR INC (CAT) Fundamental Analysis & Valuation

NYSE:CAT • US1491231015

Current stock price

830.79 USD
-4.45 (-0.53%)
At close:
831.2 USD
+0.41 (+0.05%)
After Hours:

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

9

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

  • With an excellent Return On Assets value of 9.01%, CAT belongs to the best of the industry, outperforming 80.92% of the companies in the same industry.
  • CAT has a Return On Equity of 41.67%. This is amongst the best in the industry. CAT outperforms 96.95% of its industry peers.
  • 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 10.00%.
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 better Profit Margin (13.14%) than 82.44% of its industry peers.
  • In the last couple of years the Profit Margin of CAT has grown nicely.
  • With an excellent Operating Margin value of 18.70%, CAT belongs to the best of the industry, outperforming 87.02% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CAT has grown nicely.
  • The Gross Margin of CAT (33.87%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of CAT has grown nicely.
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

  • CAT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • CAT has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for CAT has been reduced compared to 5 years ago.
  • 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 5.25. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 5.25, CAT is doing good in the industry, outperforming 77.10% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of CAT (5.81) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.70 is on the high side and indicates that CAT has dependencies on debt financing.
  • The Debt to Equity ratio of CAT (1.70) is worse than 85.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 5.25
ROIC/WACC1.42
WACC10.3%
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.
  • CAT's Current ratio of 1.44 is on the low side compared to the rest of the industry. CAT is outperformed by 73.28% of its industry peers.
  • A Quick Ratio of 0.94 indicates that CAT may have some problems paying its short term obligations.
  • The Quick ratio of CAT (0.94) is worse than 70.99% 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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5

3. CAT Growth Analysis

3.1 Past

  • CAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.88%.
  • 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.
  • Measured over the past years, CAT shows a quite strong growth in Revenue. The Revenue has been growing by 10.12% on average per year.
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

  • CAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.90% yearly.
  • Based on estimates for the next years, CAT will show a small growth in Revenue. The Revenue will grow by 7.51% on average per year.
EPS Next Y20.97%
EPS Next 2Y21.16%
EPS Next 3Y19.84%
EPS Next 5Y19.9%
Revenue Next Year11.7%
Revenue Next 2Y10.16%
Revenue Next 3Y9.06%
Revenue Next 5Y7.51%

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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1

4. CAT Valuation Analysis

4.1 Price/Earnings Ratio

  • CAT is valuated quite expensively with a Price/Earnings ratio of 43.54.
  • Compared to the rest of the industry, the Price/Earnings ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 61.83% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (27.42), we can say CAT is valued expensively.
  • CAT is valuated quite expensively with a Price/Forward Earnings ratio of 36.00.
  • Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than the industry average as 61.83% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, CAT is valued quite expensively.
Industry RankSector Rank
PE 43.54
Fwd PE 36
CAT Price Earnings VS Forward Price EarningsCAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 68.70% of the companies in the same industry are cheaper than CAT, based on the Enterprise Value to EBITDA ratio.
  • 61.83% of the companies in the same industry are cheaper than CAT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 51.87
EV/EBITDA 27.95
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.
  • CAT has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as CAT's earnings are expected to grow with 19.84% in the coming years.
PEG (NY)2.08
PEG (5Y)1.7
EPS Next 2Y21.16%
EPS Next 3Y19.84%

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6

5. CAT Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.78%, CAT is not a good candidate for dividend investing.
  • CAT's Dividend Yield is a higher than the industry average which is at 1.08.
  • With a Dividend Yield of 0.78, CAT pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.78%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.25%
Div Incr Years12
Div Non Decr Years12
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.
  • CAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.94%
EPS Next 2Y21.16%
EPS Next 3Y19.84%
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 (4/24/2026, 8:24:59 PM)

After market: 831.2 +0.41 (+0.05%)

830.79

-4.45 (-0.53%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-30
Inst Owners72.44%
Inst Owner Change-0.02%
Ins Owners0.17%
Ins Owner Change1.47%
Market Cap386.56B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.12
Price Target739.88 (-10.94%)
Short Float %1.71%
Short Ratio2.75
Dividend
Industry RankSector Rank
Dividend Yield 0.78%
Yearly Dividend5.81
Dividend Growth(5Y)7.25%
DP30.94%
Div Incr Years12
Div Non Decr Years12
Ex-Date04-20
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)3.77%
PT rev (3m)21.57%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)4.32%
EPS NY rev (1m)0.42%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)5.53%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)3.5%
Valuation
Industry RankSector Rank
PE 43.54
Fwd PE 36
P/S 5.72
P/FCF 51.87
P/OCF 32.93
P/B 18.13
P/tB 24.53
EV/EBITDA 27.95
EPS(TTM)19.08
EY2.3%
EPS(NY)23.08
Fwd EY2.78%
FCF(TTM)16.02
FCFY1.93%
OCF(TTM)25.23
OCFY3.04%
SpS145.26
BVpS45.82
TBVpS33.86
PEG (NY)2.08
PEG (5Y)1.7
Graham Number140.246 (-83.12%)
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 5.25
F-Score6
WACC10.3%
ROIC/WACC1.42
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 Y20.97%
EPS Next 2Y21.16%
EPS Next 3Y19.84%
EPS Next 5Y19.9%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year11.7%
Revenue Next 2Y10.16%
Revenue Next 3Y9.06%
Revenue Next 5Y7.51%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year33.63%
EBIT Next 3Y21.38%
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.


How profitable is CATERPILLAR INC (CAT) stock?

CATERPILLAR INC (CAT) has a profitability rating of 9 / 10.


Can you provide the expected EPS growth for CAT stock?

The Earnings per Share (EPS) of CATERPILLAR INC (CAT) is expected to grow by 20.97% in the next year.


Is the dividend of CATERPILLAR INC sustainable?

The dividend rating of CATERPILLAR INC (CAT) is 6 / 10 and the dividend payout ratio is 30.94%.