CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CAT • US1491231015
690.91 USD
+33.55 (+5.1%)
At close: Feb 2, 2026
692.45 USD
+1.54 (+0.22%)
Pre-Market: 2/3/2026, 5:54:44 AM
We assign a fundamental rating of 5 out of 10 to CAT. CAT was compared to 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.
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.
- 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.
1.2 Ratios
- The Return On Assets of CAT (9.01%) is better than 78.03% 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 96.97% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 14.63%, CAT belongs to the top of the industry, outperforming 86.36% 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 10.37%.
| Industry Rank | Sector 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%
1.3 Margins
- The Profit Margin of CAT (13.14%) is better than 82.58% of its industry peers.
- In the last couple of years the Profit Margin of CAT has grown nicely.
- With an excellent Operating Margin value of 18.70%, CAT belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
- In the last couple of years the Operating Margin of CAT has grown nicely.
- CAT has a Gross Margin (33.87%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of CAT has grown nicely.
| Industry Rank | Sector 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%
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.
- CAT has a worse debt/assets ratio than last year.
2.2 Solvency
- CAT has an Altman-Z score of 4.74. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.74, CAT is in the better half of the industry, outperforming 72.73% 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.
- CAT has a Debt to FCF ratio (5.81) which is comparable to the rest of the industry.
- 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 84.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 5.81 | ||
| Altman-Z | 4.74 |
ROIC/WACC1.54
WACC9.52%
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 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 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.94 |
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%.
- CAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.66% yearly.
- Looking at the last year, CAT shows a small growth in Revenue. The Revenue has grown by 4.29% in the last 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
- The Earnings Per Share is expected to grow by 22.90% on average over the next years. This is a very strong growth
- Based on estimates for the next years, CAT will show a small growth in Revenue. The Revenue will grow by 4.11% on average per year.
EPS Next Y18.22%
EPS Next 2Y18.5%
EPS Next 3Y20.91%
EPS Next 5Y22.9%
Revenue Next Year8.21%
Revenue Next 2Y8.02%
Revenue Next 3Y5.71%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 36.21, the valuation of CAT can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 62.12% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (28.41), we can say CAT is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 30.63, the valuation of CAT can be described as expensive.
- CAT's Price/Forward 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.21 | ||
| Fwd PE | 30.63 |
4.2 Price Multiples
- 65.15% of the companies in the same industry are cheaper than CAT, based on the Enterprise Value to EBITDA ratio.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.38 | ||
| EV/EBITDA | 23.57 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of CAT may justify a higher PE ratio.
- CAT's earnings are expected to grow with 20.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.99
PEG (5Y)1.41
EPS Next 2Y18.5%
EPS Next 3Y20.91%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.92%, CAT is not a good candidate for dividend investing.
- CAT's Dividend Yield is a higher than the industry average which is at 1.01.
- With a Dividend Yield of 0.92, CAT pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 Years11
Div Non Decr Years11
5.3 Sustainability
- CAT pays out 30.94% of its income as dividend. This is a sustainable payout ratio.
- CAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.94%
EPS Next 2Y18.5%
EPS Next 3Y20.91%
690.91
+33.55 (+5.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-28 2026-04-28/bmo
Inst Owners74.11%
Inst Owner Change-2.48%
Ins Owners0.17%
Ins Owner Change-3.28%
Market Cap323.33B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.55
Price Target608.63 (-11.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend5.81
Dividend Growth(5Y)7.25%
DP30.94%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-20 2026-01-20 (1.51)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.21 | ||
| Fwd PE | 30.63 | ||
| P/S | 4.78 | ||
| P/FCF | 43.38 | ||
| P/OCF | 27.54 | ||
| P/B | 15.17 | ||
| P/tB | 20.52 | ||
| EV/EBITDA | 23.57 |
EPS(TTM)19.08
EY2.76%
EPS(NY)22.56
Fwd EY3.26%
FCF(TTM)15.93
FCFY2.31%
OCF(TTM)25.08
OCFY3.63%
SpS144.43
BVpS45.55
TBVpS33.67
PEG (NY)1.99
PEG (5Y)1.41
Graham Number139.84
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.74 |
F-Score6
WACC9.52%
ROIC/WACC1.54
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 Y18.22%
EPS Next 2Y18.5%
EPS Next 3Y20.91%
EPS Next 5Y22.9%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year8.21%
Revenue Next 2Y8.02%
Revenue Next 3Y5.71%
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 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 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 36.21 and the Price/Book (PB) ratio is 15.17.
Can you provide the expected EPS growth for CAT stock?
The Earnings per Share (EPS) of CATERPILLAR INC (CAT) is expected to grow by 18.22% in the next year.