CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - NYSE:CAT - US1491231015 - Common Stock
569.15 USD
+21.57 (+3.94%)
572.01 USD
+2.86 (+0.5%)
Overall CAT gets a fundamental rating of 5 out of 10. We evaluated CAT against 130 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. CAT is quite expensive at the moment. It does show a decent growth rate. Finally CAT also has an excellent dividend rating.
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.
In the past 5 years CAT has always been profitable.
In the past 5 years CAT always reported a positive cash flow from operatings.
1.2 Ratios
CAT has a Return On Assets of 9.89%. This is in the better half of the industry: CAT outperforms 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 44.89%, CAT belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
CAT's Return On Invested Capital of 16.47% is amongst the best of the industry. CAT outperforms 91.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAT is significantly above the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | 44.89% | ||
| ROIC | 16.47% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.9%
ROIC(5y)14.36%
1.3 Margins
CAT has a better Profit Margin (14.34%) than 86.92% of its industry peers.
CAT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.93%, CAT belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
CAT's Operating Margin has improved in the last couple of years.
CAT has a better Gross Margin (35.53%) than 65.38% of its industry peers.
CAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.93% | ||
| PM (TTM) | 14.34% | ||
| GM | 35.53% |
OM growth 3Y15.96%
OM growth 5Y5.59%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.82%
GM growth 5Y3.49%
2. Health
2.1 Basic Checks
CAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, CAT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.47 indicates that CAT is not in any danger for bankruptcy at the moment.
CAT has a better Altman-Z score (4.47) than 70.77% of its industry peers.
CAT has a debt to FCF ratio of 4.34. This is a neutral value as CAT would need 4.34 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.34, CAT is in line with its industry, outperforming 56.92% of the companies in the same industry.
A Debt/Equity ratio of 1.56 is on the high side and indicates that CAT has dependencies on debt financing.
CAT has a worse Debt to Equity ratio (1.56) than 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.77
WACC9.33%
2.3 Liquidity
A Current Ratio of 1.38 indicates that CAT should not have too much problems paying its short term obligations.
CAT has a worse Current ratio (1.38) than 79.23% of its industry peers.
A Quick Ratio of 0.86 indicates that CAT may have some problems paying its short term obligations.
CAT's Quick ratio of 0.86 is on the low side compared to the rest of the industry. CAT is outperformed by 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for CAT have decreased strongly by -13.32% in the last year.
The Earnings Per Share has been growing by 14.64% on average over the past years. This is quite good.
Looking at the last year, CAT shows a decrease in Revenue. The Revenue has decreased by -1.51% in the last year.
CAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
EPS 1Y (TTM)-13.32%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-4.26%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%9.51%
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 14.73% yearly.
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y-15.51%
EPS Next 2Y0.21%
EPS Next 3Y6.26%
EPS Next 5Y14.73%
Revenue Next Year1.03%
Revenue Next 2Y4.02%
Revenue Next 3Y4.91%
Revenue Next 5Y3.92%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.86, the valuation of CAT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CAT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.13, CAT is valued at the same level.
A Price/Forward Earnings ratio of 25.88 indicates a quite expensive valuation of CAT.
The rest of the industry has a similar Price/Forward Earnings ratio as CAT.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, CAT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.86 | ||
| Fwd PE | 25.88 |
4.2 Price Multiples
62.31% of the companies in the same industry are cheaper than CAT, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CAT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.85 | ||
| EV/EBITDA | 19.6 |
4.3 Compensation for Growth
CAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.04
EPS Next 2Y0.21%
EPS Next 3Y6.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.06%, CAT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.83, CAT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, CAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
On average, the dividend of CAT grows each year by 7.41%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.41%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
29.36% 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.
DP29.36%
EPS Next 2Y0.21%
EPS Next 3Y6.26%
569.15
+21.57 (+3.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners71.95%
Inst Owner Change-0.18%
Ins Owners0.18%
Ins Owner Change-1.31%
Market Cap266.64B
Revenue(TTM)64.67B
Net Income(TTM)9.27B
Analysts73.13
Price Target499.54 (-12.23%)
Short Float %1.67%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend5.41
Dividend Growth(5Y)7.41%
DP29.36%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.89%
Min EPS beat(2)-4.57%
Max EPS beat(2)8.35%
EPS beat(4)2
Avg EPS beat(4)0.5%
Min EPS beat(4)-4.57%
Max EPS beat(4)8.35%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)9
Avg EPS beat(12)7.46%
EPS beat(16)13
Avg EPS beat(16)9.09%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)0.9%
Max Revenue beat(2)4.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)4.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)9
Avg Revenue beat(16)0.61%
PT rev (1m)10.84%
PT rev (3m)27.09%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-9.2%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)5.41%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.86 | ||
| Fwd PE | 25.88 | ||
| P/S | 4.12 | ||
| P/FCF | 27.85 | ||
| P/OCF | 19.67 | ||
| P/B | 12.91 | ||
| P/tB | 17.72 | ||
| EV/EBITDA | 19.6 |
EPS(TTM)19.06
EY3.35%
EPS(NY)21.99
Fwd EY3.86%
FCF(TTM)20.44
FCFY3.59%
OCF(TTM)28.94
OCFY5.08%
SpS138.04
BVpS44.1
TBVpS32.12
PEG (NY)N/A
PEG (5Y)2.04
Graham Number137.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | 44.89% | ||
| ROCE | 22.33% | ||
| ROIC | 16.47% | ||
| ROICexc | 18.74% | ||
| ROICexgc | 20.88% | ||
| OM | 19.93% | ||
| PM (TTM) | 14.34% | ||
| GM | 35.53% | ||
| FCFM | 14.81% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.9%
ROIC(5y)14.36%
ROICexc(3y)20.33%
ROICexc(5y)16.54%
ROICexgc(3y)22.96%
ROICexgc(5y)18.93%
ROCE(3y)24.59%
ROCE(5y)19.65%
ROICexgc growth 3Y20.44%
ROICexgc growth 5Y6.45%
ROICexc growth 3Y22.47%
ROICexc growth 5Y7.76%
OM growth 3Y15.96%
OM growth 5Y5.59%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.82%
GM growth 5Y3.49%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 179.41% | ||
| Cap/Sales | 6.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.72% | ||
| Profit Quality | 103.26% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 4.47 |
F-Score5
WACC9.33%
ROIC/WACC1.77
Cap/Depr(3y)136.89%
Cap/Depr(5y)120.55%
Cap/Sales(3y)4.65%
Cap/Sales(5y)4.77%
Profit Quality(3y)84.51%
Profit Quality(5y)93.37%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.32%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-4.26%
EPS Next Y-15.51%
EPS Next 2Y0.21%
EPS Next 3Y6.26%
EPS Next 5Y14.73%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%9.51%
Revenue Next Year1.03%
Revenue Next 2Y4.02%
Revenue Next 3Y4.91%
Revenue Next 5Y3.92%
EBIT growth 1Y-13.68%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-5.47%
EBIT Next 3Y5.38%
EBIT Next 5Y15.12%
FCF growth 1Y10.37%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y16.65%
OCF growth 3Y18.69%
OCF growth 5Y11.73%
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 for CAT stock?
ChartMill assigns a valuation rating of 2 / 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 9 / 10.
Can you provide the expected EPS growth for CAT stock?
The Earnings per Share (EPS) of CATERPILLAR INC (CAT) is expected to decline by -15.51% in the next year.
How sustainable is the dividend of CATERPILLAR INC (CAT) stock?
The dividend rating of CATERPILLAR INC (CAT) is 7 / 10 and the dividend payout ratio is 29.36%.