CATERPILLAR INC (CAT) Stock Fundamental Analysis

NYSE:CAT • US1491231015

722.18 USD
-30.14 (-4.01%)
At close: Mar 3, 2026
721.1 USD
-1.08 (-0.15%)
After Hours: 3/3/2026, 6:02:46 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

CAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. CAT has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, CAT is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

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.
  • CAT had positive earnings in each of the past 5 years.
  • 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

  • Looking at the Return On Assets, with a value of 9.01%, CAT is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
  • 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.
  • Looking at the Return On Invested Capital, with a value of 14.63%, CAT belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
  • CAT had an Average Return On Invested Capital over the past 3 years of 17.94%. This is significantly above the industry average of 10.21%.
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 81.54% of its industry peers.
  • CAT's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 18.70%, CAT belongs to the best of the industry, outperforming 85.38% of the companies in the same industry.
  • 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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
  • The debt/assets ratio for CAT is higher compared to a year ago.
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 73.85% 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.
  • CAT has a Debt to FCF ratio of 5.81. This is comparable to the rest of the industry: CAT outperforms 50.00% of its industry peers.
  • CAT has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
  • CAT has a worse Debt to Equity ratio (1.70) than 85.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 4.97
ROIC/WACC1.63
WACC8.99%
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 70.00% 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.
  • The Earnings Per Share has been growing by 25.66% on average over the past years. This is a very strong growth
  • CAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.29%.
  • CAT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.12% yearly.
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
  • Based on estimates for the next years, CAT will show a small growth in Revenue. The Revenue will grow by 7.04% on average per year.
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

  • 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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Find the best growth stocksShow best growing peers

1

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 37.85, CAT can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, CAT is valued a bit more expensive than the industry average as 63.08% of the companies are valued more cheaply.
  • When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (26.83), we can say CAT is valued slightly more expensively.
  • Based on the Price/Forward Earnings ratio of 31.73, the valuation of CAT can be described as expensive.
  • CAT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CAT is more expensive than 63.08% of the companies in the same industry.
  • CAT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.95, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 37.85
Fwd PE 31.73
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

  • 66.92% of the companies in the same industry are cheaper than CAT, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 61.54% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 45.35
EV/EBITDA 25.5
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)1.96
PEG (5Y)1.48
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 0.80%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.13, CAT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, CAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.8%

5.2 History

  • The dividend of CAT is nicely growing with an annual growth rate of 7.25%!
  • 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

  • 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 2Y20.58%
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 (3/3/2026, 6:02:46 PM)

After market: 721.1 -1.08 (-0.15%)

722.18

-30.14 (-4.01%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners74.11%
Inst Owner Change-3.18%
Ins Owners0.17%
Ins Owner Change-1.08%
Market Cap337.97B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.55
Price Target713.02 (-1.27%)
Short Float %2.14%
Short Ratio3.56
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
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)17.15%
PT rev (3m)20.9%
EPS NQ rev (1m)1.9%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)0.91%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)4.27%
Revenue NQ rev (3m)3.64%
Revenue NY rev (1m)3.13%
Revenue NY rev (3m)5.61%
Valuation
Industry RankSector Rank
PE 37.85
Fwd PE 31.73
P/S 5
P/FCF 45.35
P/OCF 28.79
P/B 15.85
P/tB 21.45
EV/EBITDA 25.5
EPS(TTM)19.08
EY2.64%
EPS(NY)22.76
Fwd EY3.15%
FCF(TTM)15.93
FCFY2.21%
OCF(TTM)25.08
OCFY3.47%
SpS144.43
BVpS45.55
TBVpS33.67
PEG (NY)1.96
PEG (5Y)1.48
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
WACC8.99%
ROIC/WACC1.63
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 Year32.81%
EBIT Next 3Y20.79%
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 37.85 and the Price/Book (PB) ratio is 15.85.


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.