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. CAT scores excellent on profitability, but there are some minor concerns on its financial health. CAT is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year CAT was profitable.
  • CAT had a positive operating cash flow in the past year.
  • CAT had positive earnings in each of the past 5 years.
  • 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.
  • With an excellent Return On Equity value of 41.67%, CAT belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 14.63%, CAT belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CAT 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

  • The Profit Margin of CAT (13.14%) is better than 82.58% of its industry peers.
  • CAT's Profit Margin has improved in the last couple of years.
  • CAT has a better Operating Margin (18.70%) than 85.61% of its industry peers.
  • CAT's Operating Margin has improved in the last couple of years.
  • The Gross Margin of CAT (33.87%) is comparable to the rest of the 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CAT is creating value.
  • The number of shares outstanding for CAT has been reduced compared to 1 year ago.
  • CAT has less shares outstanding than it did 5 years ago.
  • CAT has a worse debt/assets ratio than last year.
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.
  • With a decent Altman-Z score value of 4.70, CAT is doing good in the industry, outperforming 74.24% 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.
  • 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 has a Debt to Equity ratio of 1.70. This is amonst the worse of the industry: CAT underperforms 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

  • A Current Ratio of 1.44 indicates that CAT should not have too much problems paying its short term obligations.
  • CAT has a Current ratio of 1.44. This is in the lower half of the industry: CAT underperforms 75.00% 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 Quick ratio of 0.94. This is in the lower half of the industry: CAT underperforms 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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

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.
  • CAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.29%.
  • 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 very strong growth in Earnings Per Share. The EPS will grow by 22.90% on average per year.
  • The Revenue is expected to grow by 4.11% on average over the next years.
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

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 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

More info and screens

Find the best growth stocksShow best growing peers

1

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 38.06, CAT can be considered very expensive at the moment.
  • 62.12% of the companies in the same industry are cheaper than CAT, based on the Price/Earnings ratio.
  • CAT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.92.
  • CAT is valuated quite expensively with a Price/Forward Earnings ratio of 31.90.
  • Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than the industry average as 61.36% of the companies are valued more cheaply.
  • 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.
  • CAT's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CAT is 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.
  • A more expensive valuation may be justified as CAT's earnings are expected to grow with 17.39% in the coming years.
PEG (NY)1.97
PEG (5Y)1.48
EPS Next 2Y20.58%
EPS Next 3Y17.39%

More info and screens

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.
  • With a Dividend Yield of 0.89, CAT pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.89%

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 their dividend for at least 10 years, which is a reliable track record.
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

  • 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 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

More info and screens

Find the best dividend stocksShow peers with best dividend

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.