CATERPILLAR INC (CAT) Fundamental Analysis & Valuation

NYSE:CAT • US1491231015

Current stock price

817.87 USD
-10.92 (-1.32%)
At close:
820.129 USD
+2.26 (+0.28%)
After Hours:

This CAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. CAT Profitability Analysis

1.1 Basic Checks

  • CAT had positive earnings in the past year.
  • CAT had a positive operating cash flow in the past year.
  • Each year in the past 5 years CAT has 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

  • CAT has a Return On Assets of 9.01%. This is amongst the best in the industry. CAT outperforms 80.92% of its industry peers.
  • Looking at the Return On Equity, with a value of 41.67%, CAT belongs to the top of the industry, outperforming 96.95% of the companies in the same industry.
  • The Return On Invested Capital of CAT (14.63%) is better than 89.31% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CAT is significantly above the industry average of 10.06%.
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.
  • In the last couple of years the Profit Margin of CAT has grown nicely.
  • Looking at the Operating Margin, with a value of 18.70%, CAT belongs to the top of the industry, outperforming 87.02% of the companies in the same industry.
  • CAT's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 33.87%, CAT perfoms like the industry average, outperforming 58.02% of the companies in the same industry.
  • CAT's Gross Margin has improved in the last couple of years.
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. CAT Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAT is still creating some 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.
  • 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 5.19 indicates that CAT is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 5.19, CAT is doing good in the industry, outperforming 77.10% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of CAT (5.81) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.70 is on the high side and indicates that CAT has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.70, CAT is not doing good in the industry: 85.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 5.19
ROIC/WACC1.41
WACC10.37%
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.
  • CAT's Current ratio of 1.44 is on the low side compared to the rest of the industry. CAT is outperformed by 73.28% of its industry peers.
  • 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 71.76% 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. CAT Growth Analysis

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.
  • 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 19.87% 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 7.49% yearly.
EPS Next Y20.97%
EPS Next 2Y21.16%
EPS Next 3Y19.84%
EPS Next 5Y19.87%
Revenue Next Year11.7%
Revenue Next 2Y10.16%
Revenue Next 3Y9.06%
Revenue Next 5Y7.49%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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. CAT Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 42.87 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 61.07% of the companies listed in the same industry.
  • CAT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.91.
  • With a Price/Forward Earnings ratio of 35.44, CAT can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than 61.83% of the companies in the same industry.
  • CAT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.99.
Industry RankSector Rank
PE 42.87
Fwd PE 35.44
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

  • 68.70% of the companies in the same industry are cheaper than CAT, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, CAT is valued a bit more expensive than the industry average as 61.07% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 51.06
EV/EBITDA 27.41
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 19.84% in the coming years.
PEG (NY)2.04
PEG (5Y)1.67
EPS Next 2Y21.16%
EPS Next 3Y19.84%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. CAT Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.72%, CAT is not a good candidate for dividend investing.
  • CAT's Dividend Yield is comparable with the industry average which is at 1.13.
  • Compared to an average S&P500 Dividend Yield of 1.82, CAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.72%

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 Years12
Div Non Decr Years12
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.
  • CAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.94%
EPS Next 2Y21.16%
EPS Next 3Y19.84%
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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CAT Fundamentals: All Metrics, Ratios and Statistics

CATERPILLAR INC

NYSE:CAT (4/28/2026, 8:16:54 PM)

After market: 820.129 +2.26 (+0.28%)

817.87

-10.92 (-1.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Industry Strength83.85
Industry Growth71.43
Earnings (Last)01-29
Earnings (Next)04-30
Inst Owners72.44%
Inst Owner Change0.94%
Ins Owners0.17%
Ins Owner Change1.47%
Market Cap380.55B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.12
Price Target739.88 (-9.54%)
Short Float %1.64%
Short Ratio3
Dividend
Industry RankSector Rank
Dividend Yield 0.72%
Yearly Dividend5.81
Dividend Growth(5Y)7.25%
DP30.94%
Div Incr Years12
Div Non Decr Years12
Ex-Date04-20
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)3.77%
PT rev (3m)21.57%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)4.29%
EPS NY rev (1m)0.42%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)5.53%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)3.22%
Valuation
Industry RankSector Rank
PE 42.87
Fwd PE 35.44
P/S 5.63
P/FCF 51.06
P/OCF 32.42
P/B 17.85
P/tB 24.15
EV/EBITDA 27.41
EPS(TTM)19.08
EY2.33%
EPS(NY)23.08
Fwd EY2.82%
FCF(TTM)16.02
FCFY1.96%
OCF(TTM)25.23
OCFY3.08%
SpS145.26
BVpS45.82
TBVpS33.86
PEG (NY)2.04
PEG (5Y)1.67
Graham Number140.246 (-82.85%)
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 5.19
F-Score6
WACC10.37%
ROIC/WACC1.41
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 Y20.97%
EPS Next 2Y21.16%
EPS Next 3Y19.84%
EPS Next 5Y19.87%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year11.7%
Revenue Next 2Y10.16%
Revenue Next 3Y9.06%
Revenue Next 5Y7.49%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year33.63%
EBIT Next 3Y21.38%
EBIT Next 5Y19.25%
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 Fundamental Analysis 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.


How profitable is CATERPILLAR INC (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 grow by 20.97% in the next year.


Is the dividend of CATERPILLAR INC sustainable?

The dividend rating of CATERPILLAR INC (CAT) is 6 / 10 and the dividend payout ratio is 30.94%.