CATERPILLAR INC (CAT) Stock Fundamental Analysis
NYSE:CAT - New York Stock Exchange, Inc. - US1491231015 - Common Stock - Currency: USD
CAT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. CAT scores excellent on profitability, but there are some minor concerns on its financial health. CAT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CAT was profitable.
In the past year CAT had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 12.38%, CAT belongs to the top of the industry, outperforming 87.40% of the companies in the same industry.
Looking at the Return On Equity, with a value of 55.04%, CAT belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.04%, CAT belongs to the top of the industry, outperforming 96.06% of the companies in the same industry.
CAT had an Average Return On Invested Capital over the past 3 years of 14.39%. This is above the industry average of 11.19%.
The 3 year average ROIC (14.39%) for CAT is below the current ROIC(20.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 55.04% | ||
| ROIC | 20.04% |
ROA(3y)9.28%
ROA(5y)7.89%
ROE(3y)44.88%
ROE(5y)39.19%
ROIC(3y)14.39%
ROIC(5y)12.73%
1.3 Margins
CAT has a better Profit Margin (16.26%) than 91.34% of its industry peers.
CAT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.74%, CAT belongs to the best of the industry, outperforming 93.70% of the companies in the same industry.
CAT's Operating Margin has improved in the last couple of years.
CAT has a better Gross Margin (37.93%) than 68.50% of its industry peers.
CAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.74% | ||
| PM (TTM) | 16.26% | ||
| GM | 37.93% |
OM growth 3Y18.73%
OM growth 5Y5.1%
PM growth 3Y28.99%
PM growth 5Y6.53%
GM growth 3Y6.13%
GM growth 5Y2.15%
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.
Compared to 5 years ago, CAT has less shares outstanding
Compared to 1 year ago, CAT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.17 indicates that CAT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.17, CAT is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
CAT has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as CAT would need 3.94 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.94, CAT perfoms like the industry average, outperforming 58.27% of the companies in the same industry.
CAT has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
CAT has a Debt to Equity ratio of 1.52. This is amonst the worse of the industry: CAT underperforms 88.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 4.17 |
ROIC/WACC2.15
WACC9.32%
2.3 Liquidity
CAT has a Current Ratio of 1.40. 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 1.40 is on the low side compared to the rest of the industry. CAT is outperformed by 79.53% of its industry peers.
CAT has a Quick Ratio of 1.40. This is a bad value and indicates that CAT is not financially healthy enough and could expect problems in meeting its short term obligations.
CAT has a Quick ratio of 0.86. This is in the lower half of the industry: CAT underperforms 75.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.59%, which is quite good.
The Earnings Per Share has been growing by 13.62% on average over the past years. This is quite good.
CAT shows a decrease in Revenue. In the last year, the revenue decreased by -1.39%.
Measured over the past years, CAT shows a small growth in Revenue. The Revenue has been growing by 4.15% on average per year.
EPS 1Y (TTM)8.59%
EPS 3Y51.58%
EPS 5Y13.62%
EPS Q2Q%-6.34%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y17.11%
Revenue growth 5Y4.15%
Sales Q2Q%-4.19%
3.2 Future
The Earnings Per Share is expected to grow by 7.54% on average over the next years.
Based on estimates for the next years, CAT will show a small growth in Revenue. The Revenue will grow by 4.17% on average per year.
EPS Next Y4.03%
EPS Next 2Y2.64%
EPS Next 3Y4.94%
EPS Next 5Y7.54%
Revenue Next Year-3.55%
Revenue Next 2Y-1.37%
Revenue Next 3Y0.77%
Revenue Next 5Y4.17%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.48, the valuation of CAT can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CAT indicates a somewhat cheap valuation: CAT is cheaper than 74.02% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.64, CAT is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.19, which indicates a rather expensive current valuation of CAT.
CAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAT is cheaper than 68.50% of the companies in the same industry.
CAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 18.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAT is valued a bit cheaper than 64.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAT indicates a somewhat cheap valuation: CAT is cheaper than 75.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.41 | ||
| EV/EBITDA | 12.91 |
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.
PEG (NY)4.58
PEG (5Y)1.36
EPS Next 2Y2.64%
EPS Next 3Y4.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.48%, CAT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.65, CAT pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.28, CAT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
The dividend of CAT is nicely growing with an annual growth rate of 8.72%!
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)8.72%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CAT pays out 24.61% of its income as dividend. This is a sustainable payout ratio.
CAT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.61%
EPS Next 2Y2.64%
EPS Next 3Y4.94%
CATERPILLAR INC
NYSE:CAT (1/23/2025, 8:48:04 PM)
After market: 406.4 0 (0%)406.4
+8.79 (+2.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.55%
Inst Owner Change-0.64%
Ins Owners0.17%
Ins Owner Change-0.21%
Market Cap196.21B
Analysts68.67
Price Target393.12 (-3.27%)
Short Float %1.88%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend5.05
Dividend Growth(5Y)8.72%
DP24.61%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.49%
Min EPS beat(2)-4.08%
Max EPS beat(2)7.07%
EPS beat(4)3
Avg EPS beat(4)4.97%
Min EPS beat(4)-4.08%
Max EPS beat(4)8.92%
EPS beat(8)7
Avg EPS beat(8)10.94%
EPS beat(12)11
Avg EPS beat(12)11.96%
EPS beat(16)15
Avg EPS beat(16)16.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)-0.86%
Revenue beat(8)4
Avg Revenue beat(8)0.54%
Revenue beat(12)7
Avg Revenue beat(12)0.87%
Revenue beat(16)9
Avg Revenue beat(16)0.96%
PT rev (1m)1.23%
PT rev (3m)13.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 18.19 | ||
| P/S | 2.99 | ||
| P/FCF | 20.41 | ||
| P/OCF | 15.52 | ||
| P/B | 10.12 | ||
| P/tB | 14.39 | ||
| EV/EBITDA | 12.91 |
EPS(TTM)21.99
EY5.41%
EPS(NY)22.34
Fwd EY5.5%
FCF(TTM)19.91
FCFY4.9%
OCF(TTM)26.19
OCFY6.44%
SpS136.01
BVpS40.18
TBVpS28.24
PEG (NY)4.58
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 55.04% | ||
| ROCE | 27.62% | ||
| ROIC | 20.04% | ||
| ROICexc | 22.2% | ||
| ROICexgc | 24.96% | ||
| OM | 22.74% | ||
| PM (TTM) | 16.26% | ||
| GM | 37.93% | ||
| FCFM | 14.64% |
ROA(3y)9.28%
ROA(5y)7.89%
ROE(3y)44.88%
ROE(5y)39.19%
ROIC(3y)14.39%
ROIC(5y)12.73%
ROICexc(3y)16.56%
ROICexc(5y)14.78%
ROICexgc(3y)18.95%
ROICexgc(5y)17.17%
ROCE(3y)20.42%
ROCE(5y)17.93%
ROICexcg growth 3Y31.38%
ROICexcg growth 5Y7.16%
ROICexc growth 3Y34.15%
ROICexc growth 5Y8.47%
OM growth 3Y18.73%
OM growth 5Y5.1%
PM growth 3Y28.99%
PM growth 5Y6.53%
GM growth 3Y6.13%
GM growth 5Y2.15%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 141.48% | ||
| Cap/Sales | 4.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.06% | ||
| Profit Quality | 90.03% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 4.17 |
F-Score6
WACC9.32%
ROIC/WACC2.15
Cap/Depr(3y)122.15%
Cap/Depr(5y)111.4%
Cap/Sales(3y)4.61%
Cap/Sales(5y)4.77%
Profit Quality(3y)81.55%
Profit Quality(5y)90.96%
High Growth Momentum
Growth
EPS 1Y (TTM)8.59%
EPS 3Y51.58%
EPS 5Y13.62%
EPS Q2Q%-6.34%
EPS Next Y4.03%
EPS Next 2Y2.64%
EPS Next 3Y4.94%
EPS Next 5Y7.54%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y17.11%
Revenue growth 5Y4.15%
Sales Q2Q%-4.19%
Revenue Next Year-3.55%
Revenue Next 2Y-1.37%
Revenue Next 3Y0.77%
Revenue Next 5Y4.17%
EBIT growth 1Y4.68%
EBIT growth 3Y39.05%
EBIT growth 5Y9.47%
EBIT Next Year15.84%
EBIT Next 3Y6.11%
EBIT Next 5Y8.06%
FCF growth 1Y155.46%
FCF growth 3Y32.48%
FCF growth 5Y21.88%
OCF growth 1Y96.38%
OCF growth 3Y26.75%
OCF growth 5Y14.46%