CATERPILLAR INC (CAT) Stock Fundamental Analysis

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

726.2 USD
+47.89 (+7.06%)
At close: Feb 6, 2026
726.1 USD
-0.1 (-0.01%)
After Hours: 2/6/2026, 8:21:18 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 132 industry peers in the Machinery industry. While CAT has a great profitability rating, 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.
  • In the past 5 years CAT has always been profitable.
  • In the past 5 years CAT always reported a positive cash flow from operatings.
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 78.03% of the companies in the same industry.
  • The Return On Equity of CAT (41.67%) is better than 96.97% of its industry peers.
  • CAT has a better Return On Invested Capital (14.63%) than 86.36% of its industry peers.
  • CAT had an Average Return On Invested Capital over the past 3 years of 17.94%. This is significantly above the industry average of 10.37%.
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

  • With an excellent Profit Margin value of 13.14%, CAT belongs to the best of the industry, outperforming 82.58% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CAT has grown nicely.
  • CAT's Operating Margin of 18.70% is amongst the best of the industry. CAT outperforms 85.61% of its industry peers.
  • CAT's Operating Margin has improved in the last couple of years.
  • CAT has a Gross Margin of 33.87%. This is comparable to the rest of the industry: CAT outperforms 59.85% of its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CAT is creating value.
  • CAT has less shares outstanding than it did 1 year ago.
  • CAT has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, CAT has a worse debt to assets ratio.
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 4.70 indicates that CAT is not in any danger for bankruptcy at the moment.
  • CAT has a Altman-Z score of 4.70. This is in the better half of the industry: CAT outperforms 74.24% 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.
  • With a Debt to FCF ratio value of 5.81, CAT perfoms like the industry average, 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.
  • CAT's Debt to Equity ratio of 1.70 is on the low side compared to the rest of the industry. CAT is outperformed by 84.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 4.7
ROIC/WACC1.55
WACC9.46%
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

  • CAT has a Current Ratio of 1.44. This is a normal value and indicates that CAT is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.44, CAT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
  • CAT has a Quick Ratio of 1.44. This is a bad value and indicates that CAT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of CAT (0.94) is worse than 68.94% 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

  • The earnings per share for CAT have decreased strongly by -12.88% in the last year.
  • 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.
  • The Revenue has been growing slightly by 4.29% in the past 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

  • Based on estimates for the next years, CAT will show a very strong growth in Earnings Per Share. The EPS will grow by 22.90% on average per year.
  • CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.11% yearly.
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

  • 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 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

  • Based on the Price/Earnings ratio of 38.06, the valuation of CAT can be described as expensive.
  • CAT's Price/Earnings ratio is a bit more expensive when compared to the industry. CAT is more expensive than 62.12% 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 27.92.
  • The Price/Forward Earnings ratio is 31.90, which means the current valuation is very expensive for CAT.
  • Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than 61.36% of the companies in the same industry.
  • CAT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.78, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 38.06
Fwd PE 31.9
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

  • Based on the Enterprise Value to EBITDA ratio, CAT is valued a bit more expensive than 65.15% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CAT is valued a bit more expensive than 61.36% of the companies in the same industry.
Industry RankSector Rank
P/FCF 45.6
EV/EBITDA 23.17
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.
  • CAT's earnings are expected to grow with 17.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.97
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 0.89%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.06, CAT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, CAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.89%

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 (2/6/2026, 8:21:18 PM)

After market: 726.1 -0.1 (-0.01%)

726.2

+47.89 (+7.06%)

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 Cap339.85B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.55
Price Target675.88 (-6.93%)
Short Float %1.32%
Short Ratio2.42
Dividend
Industry RankSector Rank
Dividend Yield 0.89%
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 38.06
Fwd PE 31.9
P/S 5.03
P/FCF 45.6
P/OCF 28.95
P/B 15.94
P/tB 21.57
EV/EBITDA 23.17
EPS(TTM)19.08
EY2.63%
EPS(NY)22.76
Fwd EY3.13%
FCF(TTM)15.93
FCFY2.19%
OCF(TTM)25.08
OCFY3.45%
SpS144.43
BVpS45.55
TBVpS33.67
PEG (NY)1.97
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 4.7
F-Score6
WACC9.46%
ROIC/WACC1.55
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 38.06 and the Price/Book (PB) ratio is 15.94.


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.