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%)
CAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. CAT scores excellent on profitability, 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
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.
CAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAT has a Return On Assets of 9.89%. This is amongst the best in the industry. CAT outperforms 82.31% of its industry peers.
With an excellent Return On Equity value of 44.89%, CAT belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
CAT's Return On Invested Capital of 16.47% is amongst the best of the industry. CAT outperforms 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAT is significantly above the industry average of 10.39%.
| 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
CAT's Profit Margin of 14.34% is amongst the best of the industry. CAT outperforms 86.92% of its industry peers.
CAT's Profit Margin has improved in the last couple of years.
CAT's Operating Margin of 19.93% is amongst the best of the industry. CAT outperforms 89.23% of its industry peers.
CAT's Operating Margin has improved in the last couple of years.
The Gross Margin of CAT (35.53%) is better than 66.15% 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.
CAT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CAT has less shares outstanding
The debt/assets ratio for CAT is higher compared to a year ago.
2.2 Solvency
CAT has an Altman-Z score of 4.59. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CAT (4.59) is better than 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.
CAT has a Debt to FCF ratio of 4.34. This is comparable to the rest of the industry: CAT outperforms 58.46% of its industry peers.
CAT has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CAT (1.56) is worse than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.59 |
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.
The Current ratio of CAT (1.38) is worse than 79.23% of its industry peers.
A Quick Ratio of 0.86 indicates that CAT may have some problems paying its short term obligations.
CAT has a worse Quick ratio (0.86) 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%.
The Earnings Per Share has been growing by 14.64% on average over the past years. This is quite good.
CAT shows a decrease in Revenue. In the last year, the revenue decreased by -1.51%.
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
CAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.73% yearly.
CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
EPS Next Y-15.51%
EPS Next 2Y0.21%
EPS Next 3Y6.26%
EPS Next 5Y14.73%
Revenue Next Year1.03%
Revenue Next 2Y4.02%
Revenue Next 3Y4.91%
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.
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
CAT is valuated quite expensively with a Price/Earnings ratio of 31.65.
Compared to the rest of the industry, the Price/Earnings ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 60.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (26.46), we can say CAT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 27.42, the valuation of CAT can be described as expensive.
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 62.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CAT to the average of the S&P500 Index (36.10), we can say CAT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.65 | ||
| Fwd PE | 27.42 |
4.2 Price Multiples
63.08% 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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.48 | ||
| EV/EBITDA | 20.51 |
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 2Y0.21%
EPS Next 3Y6.26%
5. Dividend
5.1 Amount
CAT has a Yearly Dividend Yield of 1.05%.
Compared to an average industry Dividend Yield of 1.90, CAT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, CAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of CAT is nicely growing with an annual growth rate of 7.41%!
CAT has paid a dividend for at least 10 years, which is 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.
The dividend of CAT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.36%
EPS Next 2Y0.21%
EPS Next 3Y6.26%
603.17
+4.02 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners71.95%
Inst Owner Change0.7%
Ins Owners0.18%
Ins Owner Change-1.68%
Market Cap282.27B
Revenue(TTM)64.67B
Net Income(TTM)9.27B
Analysts73.13
Price Target589.78 (-2.22%)
Short Float %1.37%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)18.06%
PT rev (3m)32.39%
EPS NQ rev (1m)7.98%
EPS NQ rev (3m)2.33%
EPS NY rev (1m)2.65%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)3.6%
Revenue NQ rev (3m)3.86%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.65 | ||
| Fwd PE | 27.42 | ||
| P/S | 4.36 | ||
| P/FCF | 29.48 | ||
| P/OCF | 20.82 | ||
| P/B | 13.66 | ||
| P/tB | 18.76 | ||
| EV/EBITDA | 20.51 |
EPS(TTM)19.06
EY3.16%
EPS(NY)21.99
Fwd EY3.65%
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 | 4.59 |
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-15.51%
EPS Next 2Y0.21%
EPS Next 3Y6.26%
EPS Next 5Y14.73%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%9.51%
Revenue Next Year1.03%
Revenue Next 2Y4.02%
Revenue Next 3Y4.91%
Revenue Next 5Y4.38%
EBIT growth 1Y-13.68%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-5.47%
EBIT Next 3Y5.38%
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 -15.51% 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%.