CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAT - US1491231015 - Common Stock
603.17 USD
+4.02 (+0.67%)
605.01 USD
+1.84 (+0.31%)
We assign a fundamental rating of 5 out of 10 to CAT. CAT was compared to 130 industry peers in the Machinery industry. CAT has an excellent profitability rating, but there are some minor concerns on its financial health. CAT is valied quite expensively at the moment, while it does show a decent growth rate. CAT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAT had positive earnings in the past year.
CAT had a positive operating cash flow in the past year.
In the past 5 years CAT has always been profitable.
In the past 5 years CAT always reported a positive cash flow from operatings.
1.2 Ratios
CAT has a better Return On Assets (9.89%) than 80.00% of its industry peers.
CAT has a Return On Equity of 44.89%. This is amongst the best in the industry. CAT outperforms 96.92% of its industry peers.
With an excellent Return On Invested Capital value of 16.47%, CAT belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CAT is significantly above the industry average of 10.46%.
| 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
With an excellent Profit Margin value of 14.34%, CAT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
CAT's Profit Margin has improved in the last couple of years.
CAT has a better Operating Margin (19.93%) than 89.23% of its industry peers.
In the last couple of years the Operating Margin of CAT has grown nicely.
The Gross Margin of CAT (35.53%) is better than 64.62% 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.
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.
2.2 Solvency
CAT has an Altman-Z score of 4.60. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
CAT has a Altman-Z score of 4.60. This is in the better half of the industry: CAT outperforms 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.
Looking at the Debt to FCF ratio, with a value of 4.34, CAT is in line with its industry, outperforming 57.69% of the companies in the same industry.
CAT has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.56, CAT is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.6 |
ROIC/WACC1.77
WACC9.3%
2.3 Liquidity
CAT has a Current Ratio of 1.38. This is a normal value and indicates that CAT is financially healthy and should not expect problems in meeting its short term obligations.
CAT's Current ratio of 1.38 is on the low side compared to the rest of the industry. CAT is outperformed by 78.46% of its industry peers.
CAT has a Quick Ratio of 1.38. 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 (0.86) is worse 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%.
CAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.64% yearly.
CAT shows a decrease in Revenue. In the last year, the revenue decreased by -1.51%.
CAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
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
Based on estimates for the next years, CAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.73% on average per year.
Based on estimates for the next years, CAT will show a small growth in Revenue. The Revenue will grow by 4.38% on average per year.
EPS Next Y-13.6%
EPS Next 2Y1.12%
EPS Next 3Y6.69%
EPS Next 5Y14.73%
Revenue Next Year2.36%
Revenue Next 2Y5.21%
Revenue Next 3Y6%
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
A Price/Earnings ratio of 31.65 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 60.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, CAT is valued at the same level.
A Price/Forward Earnings ratio of 26.94 indicates a quite expensive valuation of CAT.
Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than 60.77% 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 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.65 | ||
| Fwd PE | 26.94 |
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 64.62% 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 | 29.48 | ||
| EV/EBITDA | 20.63 |
4.3 Compensation for Growth
The excellent profitability rating of CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.16
EPS Next 2Y1.12%
EPS Next 3Y6.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, CAT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.84, CAT pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.01, CAT pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of CAT is nicely growing with an annual growth rate of 7.41%!
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)7.41%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
29.36% 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.
DP29.36%
EPS Next 2Y1.12%
EPS Next 3Y6.69%
603.17
+4.02 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.14%
Inst Owner Change0.75%
Ins Owners0.18%
Ins Owner Change-2.19%
Market Cap282.27B
Revenue(TTM)64.67B
Net Income(TTM)9.27B
Analysts74.55
Price Target596.06 (-1.18%)
Short Float %1.37%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)19.32%
PT rev (3m)33.28%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)6.82%
EPS NY rev (1m)2.25%
EPS NY rev (3m)2.47%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)4.2%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.65 | ||
| Fwd PE | 26.94 | ||
| P/S | 4.36 | ||
| P/FCF | 29.48 | ||
| P/OCF | 20.82 | ||
| P/B | 13.66 | ||
| P/tB | 18.76 | ||
| EV/EBITDA | 20.63 |
EPS(TTM)19.06
EY3.16%
EPS(NY)22.39
Fwd EY3.71%
FCF(TTM)20.46
FCFY3.39%
OCF(TTM)28.97
OCFY4.8%
SpS138.19
BVpS44.14
TBVpS32.16
PEG (NY)N/A
PEG (5Y)2.16
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 | 4.6 |
F-Score5
WACC9.3%
ROIC/WACC1.77
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-13.6%
EPS Next 2Y1.12%
EPS Next 3Y6.69%
EPS Next 5Y14.73%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%9.51%
Revenue Next Year2.36%
Revenue Next 2Y5.21%
Revenue Next 3Y6%
Revenue Next 5Y4.38%
EBIT growth 1Y-13.68%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-1.19%
EBIT Next 3Y9.01%
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 -13.6% 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%.