CATERPILLAR INC (CAT) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CAT • US1491231015

702.89 USD
+11.98 (+1.73%)
At close: Feb 3, 2026
702.2 USD
-0.69 (-0.1%)
After Hours: 2/3/2026, 8:04:00 PM
Fundamental Rating

5

CAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. CAT scores excellent on profitability, 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.
  • CAT had a positive operating cash flow in the past year.
  • 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

  • The Return On Assets of CAT (9.01%) is better than 78.03% of its industry peers.
  • CAT has a better Return On Equity (41.67%) than 96.97% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 14.63%, CAT belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CAT is significantly above the industry average of 10.37%.
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 82.58% 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 85.61% 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. 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.
  • 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

  • An Altman-Z score of 4.79 indicates that CAT is not in any danger for bankruptcy at the moment.
  • CAT has a Altman-Z score of 4.79. This is in the better half of the industry: CAT outperforms 72.73% of its industry peers.
  • CAT has a debt to FCF ratio of 5.81. This is a neutral value as CAT would need 5.81 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 5.81, CAT is in line with its industry, outperforming 50.00% of the companies in the same 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 84.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 4.79
ROIC/WACC1.54
WACC9.53%
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 75.00% 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.
  • CAT has a worse Quick ratio (0.94) than 68.18% 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. Growth

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
  • The Revenue has been growing slightly by 4.29% in the past 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

  • The Earnings Per Share is expected to grow by 22.90% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 4.11% on average over the next years.
EPS Next Y19.3%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
EPS Next 5Y22.9%
Revenue Next Year10.46%
Revenue Next 2Y9.5%
Revenue Next 3Y8.41%
Revenue Next 5Y4.11%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 20B 40B 60B 80B
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 10 20 30 40

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1

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 36.84 indicates a quite expensive valuation of CAT.
  • Compared to the rest of the industry, the Price/Earnings ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 62.12% of the companies listed in the same industry.
  • CAT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.18.
  • A Price/Forward Earnings ratio of 30.88 indicates a quite expensive valuation of CAT.
  • Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than 62.12% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, CAT is valued a bit more expensive.
Industry RankSector Rank
PE 36.84
Fwd PE 30.88
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

  • 65.15% 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 61.36% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 44.14
EV/EBITDA 23.94
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 17.39% in the coming years.
PEG (NY)1.91
PEG (5Y)1.44
EPS Next 2Y20.58%
EPS Next 3Y17.39%

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6

5. Dividend

5.1 Amount

  • CAT has a yearly dividend return of 0.86%, which is pretty low.
  • CAT's Dividend Yield is a higher than the industry average which is at 1.01.
  • With a Dividend Yield of 0.86, CAT pays less dividend than the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 0.86%

5.2 History

  • On average, the dividend of CAT grows each year by 7.25%, which is quite nice.
  • 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 (2/3/2026, 8:04:00 PM)

After market: 702.2 -0.69 (-0.1%)

702.89

+11.98 (+1.73%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners74.11%
Inst Owner Change-2.48%
Ins Owners0.17%
Ins Owner Change-3.28%
Market Cap328.94B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.55
Price Target675.88 (-3.84%)
Short Float %1.32%
Short Ratio2.42
Dividend
Industry RankSector Rank
Dividend Yield 0.86%
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)1.86%
PT rev (3m)21.84%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)0.44%
EPS NY rev (3m)5.07%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)4.78%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)4.41%
Valuation
Industry RankSector Rank
PE 36.84
Fwd PE 30.88
P/S 4.87
P/FCF 44.14
P/OCF 28.02
P/B 15.43
P/tB 20.88
EV/EBITDA 23.94
EPS(TTM)19.08
EY2.71%
EPS(NY)22.76
Fwd EY3.24%
FCF(TTM)15.93
FCFY2.27%
OCF(TTM)25.08
OCFY3.57%
SpS144.43
BVpS45.55
TBVpS33.67
PEG (NY)1.91
PEG (5Y)1.44
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 4.79
F-Score6
WACC9.53%
ROIC/WACC1.54
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 5Y22.9%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year10.46%
Revenue Next 2Y9.5%
Revenue Next 3Y8.41%
Revenue Next 5Y4.11%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year31.87%
EBIT Next 3Y29.93%
EBIT Next 5Y23.91%
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 36.84 and the Price/Book (PB) ratio is 15.43.


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.