CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAT - US1491231015 - Common Stock
599.15 USD
+7.66 (+1.3%)
608 USD
+8.85 (+1.48%)
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. While showing a medium growth rate, CAT is valued expensive at the moment. CAT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CAT was profitable.
In the past year CAT had a positive cash flow from operations.
In the past 5 years CAT has always been profitable.
CAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CAT (9.89%) is better than 82.31% of its industry peers.
CAT's Return On Equity of 44.89% is amongst the best of the industry. CAT outperforms 96.92% of its industry peers.
CAT has a Return On Invested Capital of 16.47%. This is amongst the best in the industry. CAT outperforms 92.31% of its industry peers.
CAT had an Average Return On Invested Capital over the past 3 years of 17.90%. This is significantly above the industry average of 10.39%.
| 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.
In the last couple of years the Profit Margin of CAT has grown nicely.
CAT has a better Operating Margin (19.93%) than 89.23% of its industry peers.
CAT's Operating Margin has improved in the last couple of years.
CAT has a Gross Margin of 35.53%. This is in the better half of the industry: CAT outperforms 66.15% of its industry peers.
In the last couple of years the Gross Margin of CAT has grown nicely.
| 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.
Compared to 5 years ago, CAT has less shares outstanding
The debt/assets ratio for CAT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.59 indicates that CAT is not in any danger for bankruptcy at the moment.
CAT has a better Altman-Z score (4.59) than 73.08% of its industry peers.
The Debt to FCF ratio of CAT is 4.34, which is a neutral value as it means it would take CAT, 4.34 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAT (4.34) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.56 is on the high side and indicates that CAT has dependencies on debt financing.
The Debt to Equity ratio of CAT (1.56) is worse than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.59 |
ROIC/WACC1.79
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.38 indicates that CAT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, CAT is not doing good in the industry: 79.23% of the companies in the same industry are doing better.
A Quick Ratio of 0.86 indicates that CAT may have some problems paying its short term obligations.
CAT has a worse Quick ratio (0.86) than 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.32%.
Measured over the past years, CAT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.64% on average per year.
The Revenue has decreased by -1.51% in the past year.
The Revenue has been growing slightly by 3.79% on average over the past years.
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
The Earnings Per Share is expected to grow by 14.73% on average over the next years. This is quite good.
CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
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 5Y4.38%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.43, CAT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CAT is valued a bit more expensive than 60.00% of the companies in the same industry.
CAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.41.
A Price/Forward Earnings ratio of 27.24 indicates a quite expensive valuation of CAT.
Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than 62.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CAT to the average of the S&P500 Index (35.40), we can say CAT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.43 | ||
| Fwd PE | 27.24 |
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 63.08% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CAT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.28 | ||
| EV/EBITDA | 20.51 |
4.3 Compensation for Growth
CAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.15
EPS Next 2Y0.21%
EPS Next 3Y6.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, CAT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.90, CAT pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.05, CAT pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
On average, the dividend of CAT grows each year by 7.41%, which is quite nice.
CAT has paid a dividend for at least 10 years, which is a reliable track record.
CAT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.41%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CAT pays out 29.36% 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.
DP29.36%
EPS Next 2Y0.21%
EPS Next 3Y6.26%
599.15
+7.66 (+1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners71.95%
Inst Owner Change0.7%
Ins Owners0.18%
Ins Owner Change-1.68%
Market Cap280.39B
Revenue(TTM)64.67B
Net Income(TTM)9.27B
Analysts73.13
Price Target589.78 (-1.56%)
Short Float %1.37%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)18.06%
PT rev (3m)32.39%
EPS NQ rev (1m)7.98%
EPS NQ rev (3m)2.33%
EPS NY rev (1m)2.65%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)3.6%
Revenue NQ rev (3m)3.86%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.43 | ||
| Fwd PE | 27.24 | ||
| P/S | 4.34 | ||
| P/FCF | 29.28 | ||
| P/OCF | 20.68 | ||
| P/B | 13.57 | ||
| P/tB | 18.63 | ||
| EV/EBITDA | 20.51 |
EPS(TTM)19.06
EY3.18%
EPS(NY)21.99
Fwd EY3.67%
FCF(TTM)20.46
FCFY3.41%
OCF(TTM)28.97
OCFY4.83%
SpS138.19
BVpS44.14
TBVpS32.16
PEG (NY)N/A
PEG (5Y)2.15
Graham Number137.59
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 | 4.59 |
F-Score5
WACC9.22%
ROIC/WACC1.79
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 5Y4.38%
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%.