CATERPILLAR INC (CAT) Fundamental Analysis & Valuation

NYSE:CAT • US1491231015

Current stock price

790.66 USD
+3.59 (+0.46%)
At close:
791.76 USD
+1.1 (+0.14%)
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

  • In the past year CAT was profitable.
  • 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

  • Looking at the Return On Assets, with a value of 9.01%, CAT belongs to the top of the industry, outperforming 80.92% of the companies in the same industry.
  • CAT has a better Return On Equity (41.67%) than 96.95% of its industry peers.
  • CAT's Return On Invested Capital of 14.63% is amongst the best of the industry. CAT outperforms 89.31% 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 10.02%.
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 82.44% of the companies in the same industry.
  • CAT's Profit Margin has improved in the last couple of years.
  • CAT has a Operating Margin of 18.70%. This is amongst the best in the industry. CAT outperforms 87.02% of its industry peers.
  • In the last couple of years the Operating Margin of CAT has grown nicely.
  • CAT's Gross Margin of 33.87% is in line compared to the rest of the industry. CAT outperforms 58.78% of its industry peers.
  • 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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAT is creating some value.
  • Compared to 1 year ago, CAT has less shares outstanding
  • Compared to 5 years ago, CAT has less shares outstanding
  • 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 5.08 indicates that CAT is not in any danger for bankruptcy at the moment.
  • CAT has a Altman-Z score of 5.08. This is in the better half of the industry: CAT outperforms 74.81% of its industry peers.
  • The Debt to FCF ratio of CAT is 5.81, which is a neutral value as it means it would take CAT, 5.81 years of fcf income to pay off all of its debts.
  • CAT has a Debt to FCF ratio (5.81) which is in line with its industry peers.
  • CAT has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
  • CAT has a worse Debt to Equity ratio (1.70) than 85.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 5.08
ROIC/WACC1.46
WACC10.04%
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: 73.28% 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.
  • With a Quick ratio value of 0.94, CAT is not doing good in the industry: 70.23% of the companies in the same industry are doing better.
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.
  • The Revenue has been growing slightly by 4.29% in the past year.
  • CAT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.12% yearly.
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 quite strong growth in Earnings Per Share. The EPS will grow by 19.90% on average per year.
  • Based on estimates for the next years, CAT will show a small growth in Revenue. The Revenue will grow by 7.51% on average per year.
EPS Next Y20.46%
EPS Next 2Y20.74%
EPS Next 3Y19.31%
EPS Next 5Y19.9%
Revenue Next Year11.77%
Revenue Next 2Y10.2%
Revenue Next 3Y9%
Revenue Next 5Y7.51%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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. CAT Valuation Analysis

4.1 Price/Earnings Ratio

  • CAT is valuated quite expensively with a Price/Earnings ratio of 41.44.
  • Based on the Price/Earnings ratio, CAT is valued a bit more expensive than the industry average as 62.60% of the companies are valued more cheaply.
  • CAT is valuated expensively when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 34.40, CAT can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 64.12% of the companies listed in the same industry.
  • CAT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 41.44
Fwd PE 34.4
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

  • Based on the Enterprise Value to EBITDA ratio, CAT is valued a bit more expensive than 68.70% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CAT is valued a bit more expensive than 61.83% of the companies in the same industry.
Industry RankSector Rank
P/FCF 49.36
EV/EBITDA 26.44
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.
  • CAT's earnings are expected to grow with 19.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)1.62
EPS Next 2Y20.74%
EPS Next 3Y19.31%

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6

5. CAT Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.87%, CAT is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.21, CAT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, CAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.87%

5.2 History

  • On average, the dividend of CAT grows each year by 7.25%, 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)7.25%
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

  • 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 2Y20.74%
EPS Next 3Y19.31%
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 (4/10/2026, 8:09:39 PM)

After market: 791.76 +1.1 (+0.14%)

790.66

+3.59 (+0.46%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners72.31%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change0.58%
Market Cap367.89B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.12
Price Target736.42 (-6.86%)
Short Float %1.65%
Short Ratio2.58
Dividend
Industry RankSector Rank
Dividend Yield 0.87%
Yearly Dividend5.81
Dividend Growth(5Y)7.25%
DP30.94%
Div Incr Years12
Div Non Decr Years12
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)3.28%
PT rev (3m)23.25%
EPS NQ rev (1m)1.46%
EPS NQ rev (3m)3.24%
EPS NY rev (1m)0%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)4.82%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)3.33%
Valuation
Industry RankSector Rank
PE 41.44
Fwd PE 34.4
P/S 5.44
P/FCF 49.36
P/OCF 31.34
P/B 17.26
P/tB 23.35
EV/EBITDA 26.44
EPS(TTM)19.08
EY2.41%
EPS(NY)22.98
Fwd EY2.91%
FCF(TTM)16.02
FCFY2.03%
OCF(TTM)25.23
OCFY3.19%
SpS145.26
BVpS45.82
TBVpS33.86
PEG (NY)2.03
PEG (5Y)1.62
Graham Number140.25
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 5.08
F-Score6
WACC10.04%
ROIC/WACC1.46
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 Y20.46%
EPS Next 2Y20.74%
EPS Next 3Y19.31%
EPS Next 5Y19.9%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year11.77%
Revenue Next 2Y10.2%
Revenue Next 3Y9%
Revenue Next 5Y7.51%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year32.81%
EBIT Next 3Y20.79%
EBIT Next 5Y19.31%
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 20.46% 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%.