CATERPILLAR INC (CAT) Stock Fundamental Analysis

NYSE:CAT • US1491231015

751.97 USD
-12.79 (-1.67%)
At close: Feb 18, 2026
752.99 USD
+1.02 (+0.14%)
After Hours: 2/18/2026, 8:17:50 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall CAT gets a fundamental rating of 5 out of 10. We evaluated CAT against 131 industry peers in the Machinery industry. While CAT belongs to the best of the industry regarding profitability, 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

  • 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.
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 a decent Return On Assets value of 9.01%, CAT is doing good in the industry, outperforming 78.63% of the companies in the same industry.
  • CAT's Return On Equity of 41.67% is amongst the best of the industry. CAT outperforms 96.95% 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 87.02% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital 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 82.44% of its industry peers.
  • CAT's Profit Margin has improved in the last couple of years.
  • The Operating Margin of CAT (18.70%) is better than 85.50% of its industry peers.
  • In the last couple of years the Operating Margin of CAT has grown nicely.
  • Looking at the Gross Margin, with a value of 33.87%, CAT is in line with its industry, outperforming 59.54% of the companies in the same 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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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.
  • 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

  • An Altman-Z score of 5.01 indicates that CAT is not in any danger for bankruptcy at the moment.
  • CAT has a Altman-Z score of 5.01. This is in the better half of the industry: CAT outperforms 75.57% 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.
  • CAT has a Debt to FCF ratio of 5.81. This is comparable to the rest of the industry: CAT outperforms 50.38% 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 has a Debt to Equity ratio of 1.70. This is amonst the worse of the industry: CAT underperforms 83.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 5.01
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.
  • With a Current ratio value of 1.44, CAT is not doing good in the industry: 74.81% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.94 indicates that CAT may have some problems paying its short term obligations.
  • CAT has a Quick ratio of 0.94. This is in the lower half of the industry: CAT underperforms 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. Growth

3.1 Past

  • CAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.88%.
  • Measured over the past years, CAT shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.66% on average per year.
  • 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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.21% yearly.
  • The Revenue is expected to grow by 7.04% on average over the next years.
EPS Next Y19.3%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
EPS Next 5Y20.21%
Revenue Next Year10.46%
Revenue Next 2Y9.5%
Revenue Next 3Y8.41%
Revenue Next 5Y7.04%

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.
  • 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 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. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 39.41 indicates a quite expensive valuation of CAT.
  • 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's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.27.
  • Based on the Price/Forward Earnings ratio of 33.04, the valuation of CAT can be described as expensive.
  • Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than the industry average as 62.60% of the companies are valued more cheaply.
  • When comparing the Price/Forward Earnings ratio of CAT to the average of the S&P500 Index (28.16), we can say CAT is valued inline with the index average.
Industry RankSector Rank
PE 39.41
Fwd PE 33.04
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

  • CAT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CAT is more expensive than 66.41% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CAT is valued a bit more expensive than 60.31% of the companies in the same industry.
Industry RankSector Rank
P/FCF 47.22
EV/EBITDA 25.89
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 an expensive valuation of the company.
  • 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)2.04
PEG (5Y)1.54
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

  • With a yearly dividend of 0.80%, CAT is not a good candidate for dividend investing.
  • CAT's Dividend Yield is a higher than the industry average which is at 1.17.
  • With a Dividend Yield of 0.80, CAT pays less dividend than the S&P500 average, which is at 1.84.
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 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

  • CAT pays out 30.94% of its income as dividend. This is a 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 (2/18/2026, 8:17:50 PM)

After market: 752.99 +1.02 (+0.14%)

751.97

-12.79 (-1.67%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners74.11%
Inst Owner Change-2.31%
Ins Owners0.17%
Ins Owner Change-0.95%
Market Cap351.91B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.55
Price Target675.88 (-10.12%)
Short Float %1.33%
Short Ratio2.22
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)13.12%
PT rev (3m)35.3%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)4.03%
EPS NY rev (1m)1.35%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)3.93%
Revenue NQ rev (3m)3.98%
Revenue NY rev (1m)2.35%
Revenue NY rev (3m)4.54%
Valuation
Industry RankSector Rank
PE 39.41
Fwd PE 33.04
P/S 5.21
P/FCF 47.22
P/OCF 29.98
P/B 16.51
P/tB 22.33
EV/EBITDA 25.89
EPS(TTM)19.08
EY2.54%
EPS(NY)22.76
Fwd EY3.03%
FCF(TTM)15.93
FCFY2.12%
OCF(TTM)25.08
OCFY3.34%
SpS144.43
BVpS45.55
TBVpS33.67
PEG (NY)2.04
PEG (5Y)1.54
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 5.01
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 Year10.46%
Revenue Next 2Y9.5%
Revenue Next 3Y8.41%
Revenue Next 5Y7.04%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year31.87%
EBIT Next 3Y29.93%
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 39.41 and the Price/Book (PB) ratio is 16.51.


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.