CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAT - US1491231015 - Common Stock
575.76 USD
+2.03 (+0.35%)
575.86 USD
+0.1 (+0.02%)
Taking everything into account, CAT scores 5 out of 10 in our fundamental rating. CAT was compared to 130 industry peers in the Machinery industry. CAT scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, CAT is valued expensive at the moment. Finally CAT also has an excellent dividend rating.
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.
CAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAT's Return On Assets of 9.89% is amongst the best of the industry. CAT outperforms 82.31% of its industry peers.
CAT's Return On Equity of 44.89% is amongst the best of the industry. CAT outperforms 96.92% of its industry peers.
CAT has a better Return On Invested Capital (16.47%) than 92.31% of its industry peers.
CAT had an Average Return On Invested Capital over the past 3 years of 17.90%. This is significantly above the industry average of 10.35%.
| 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
The Profit Margin of CAT (14.34%) is better than 86.92% 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 19.93%, CAT belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
CAT's Operating Margin has improved in the last couple of years.
CAT has a Gross Margin of 35.53%. This is in the better half of the industry: CAT outperforms 66.15% of its industry peers.
CAT's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CAT is creating value.
Compared to 1 year ago, CAT has less shares outstanding
The number of shares outstanding for CAT has been reduced compared to 5 years ago.
The debt/assets ratio for CAT is higher compared to a year ago.
2.2 Solvency
CAT has an Altman-Z score of 4.50. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
CAT has a better Altman-Z score (4.50) than 71.54% of its industry peers.
CAT has a debt to FCF ratio of 4.34. This is a neutral value as CAT would need 4.34 years to pay back of all of its debts.
CAT has a Debt to FCF ratio (4.34) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.56 is on the high side and indicates that CAT has dependencies on debt 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 | 4.5 |
ROIC/WACC1.8
WACC9.15%
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 has a Current ratio of 1.38. This is in the lower half of the industry: CAT underperforms 79.23% 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.
With a Quick ratio value of 0.86, CAT is not doing good in the industry: 72.31% of the companies in the same industry are doing better.
| 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.
Looking at the last year, CAT shows a decrease in Revenue. The Revenue has decreased by -1.51% in the last year.
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.
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.
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
CAT is valuated quite expensively with a Price/Earnings ratio of 30.21.
60.00% of the companies in the same industry are cheaper than CAT, based on the Price/Earnings ratio.
CAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 26.18, which means the current valuation is very expensive for CAT.
60.77% of the companies in the same industry are cheaper than CAT, based on the Price/Forward Earnings ratio.
CAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.21 | ||
| Fwd PE | 26.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAT is valued a bit more expensive than the industry average as 62.31% of the companies are valued more cheaply.
CAT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.14 | ||
| EV/EBITDA | 19.78 |
4.3 Compensation for Growth
CAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.06
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 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)7.41%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CAT pays out 29.36% 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.
DP29.36%
EPS Next 2Y0.21%
EPS Next 3Y6.26%
575.76
+2.03 (+0.35%)
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 Cap269.44B
Revenue(TTM)64.67B
Net Income(TTM)9.27B
Analysts73.13
Price Target589.78 (2.44%)
Short Float %1.45%
Short Ratio2.28
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 | 30.21 | ||
| Fwd PE | 26.18 | ||
| P/S | 4.17 | ||
| P/FCF | 28.14 | ||
| P/OCF | 19.88 | ||
| P/B | 13.04 | ||
| P/tB | 17.91 | ||
| EV/EBITDA | 19.78 |
EPS(TTM)19.06
EY3.31%
EPS(NY)21.99
Fwd EY3.82%
FCF(TTM)20.46
FCFY3.55%
OCF(TTM)28.97
OCFY5.03%
SpS138.19
BVpS44.14
TBVpS32.16
PEG (NY)N/A
PEG (5Y)2.06
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 | 4.5 |
F-Score5
WACC9.15%
ROIC/WACC1.8
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%.