CATERPILLAR INC (CAT) Stock Fundamental Analysis
NYSE:CAT • US1491231015
774.2 USD
+15.91 (+2.1%)
At close: Feb 13, 2026
775.02 USD
+0.82 (+0.11%)
After Hours: 2/13/2026, 8:04:00 PM
Overall CAT gets a fundamental rating of 5 out of 10. We evaluated CAT against 131 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.
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.
- In the past 5 years CAT has always been profitable.
- Each year in the past 5 years CAT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 9.01%, CAT is in the better half of the industry, outperforming 78.63% of the companies in the same industry.
- The Return On Equity of CAT (41.67%) is better than 96.95% of its industry peers.
- CAT has a better Return On Invested Capital (14.63%) than 87.02% 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 10.21%.
| 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
- Looking at the Profit Margin, with a value of 13.14%, CAT belongs to the top of the industry, outperforming 82.44% of the companies in the same industry.
- In the last couple of years the Profit Margin of CAT has grown nicely.
- CAT's Operating Margin of 18.70% is amongst the best of the industry. CAT outperforms 85.50% of its industry peers.
- In the last couple of years the Operating Margin of CAT has grown nicely.
- CAT has a Gross Margin of 33.87%. This is comparable to the rest of the industry: CAT outperforms 58.78% of its industry peers.
- 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
- 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
- CAT has less shares outstanding than it did 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 4.99. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.99, CAT is doing good in the industry, outperforming 74.81% 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 of 5.81. This is comparable to the rest of the industry: CAT outperforms 50.38% of its industry peers.
- A Debt/Equity ratio of 1.70 is on the high side and indicates that CAT has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.70, CAT is not doing good in the industry: 83.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 5.81 | ||
| Altman-Z | 4.99 |
ROIC/WACC1.57
WACC9.3%
2.3 Liquidity
- CAT has a Current Ratio of 1.44. 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 (1.44) is worse than 74.05% 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 68.70% 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%.
- The Earnings Per Share has been growing by 25.66% on average over the past years. This is a very strong growth
- CAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.29%.
- 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
- CAT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.90% yearly.
- The Revenue is expected to grow by 4.11% on average over the next years.
EPS Next Y19.3%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
EPS Next 5Y22.9%
Revenue Next Year10.46%
Revenue Next 2Y9.5%
Revenue Next 3Y8.41%
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
- CAT is valuated quite expensively with a Price/Earnings ratio of 40.58.
- 63.36% of the companies in the same industry are cheaper than CAT, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.97. CAT is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 34.01, 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 63.36% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.96, CAT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.58 | ||
| Fwd PE | 34.01 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 68.70% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.61 | ||
| EV/EBITDA | 25.68 |
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 17.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.1
PEG (5Y)1.58
EPS Next 2Y20.58%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.89%, CAT is not a good candidate for dividend investing.
- CAT's Dividend Yield is a higher than the industry average which is at 1.14.
- With a Dividend Yield of 0.89, CAT pays less dividend than the S&P500 average, which is at 1.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- On average, the dividend of CAT grows each year by 7.25%, which is quite nice.
- CAT has paid a dividend for at least 10 years, which is a reliable track record.
- CAT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.25%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 30.94% 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.
DP30.94%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
774.2
+15.91 (+2.1%)
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-1.91%
Ins Owners0.17%
Ins Owner Change-3.27%
Market Cap362.31B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.55
Price Target675.88 (-12.7%)
Short Float %1.32%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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)13.12%
PT rev (3m)35.3%
EPS NQ rev (1m)1.93%
EPS NQ rev (3m)4.8%
EPS NY rev (1m)1.35%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)3.13%
Revenue NQ rev (3m)3.56%
Revenue NY rev (1m)2.12%
Revenue NY rev (3m)4.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.58 | ||
| Fwd PE | 34.01 | ||
| P/S | 5.36 | ||
| P/FCF | 48.61 | ||
| P/OCF | 30.86 | ||
| P/B | 17 | ||
| P/tB | 23 | ||
| EV/EBITDA | 25.68 |
EPS(TTM)19.08
EY2.46%
EPS(NY)22.76
Fwd EY2.94%
FCF(TTM)15.93
FCFY2.06%
OCF(TTM)25.08
OCFY3.24%
SpS144.43
BVpS45.55
TBVpS33.67
PEG (NY)2.1
PEG (5Y)1.58
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 | 4.99 |
F-Score6
WACC9.3%
ROIC/WACC1.57
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 Y19.3%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
EPS Next 5Y22.9%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year10.46%
Revenue Next 2Y9.5%
Revenue Next 3Y8.41%
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 40.58 and the Price/Book (PB) ratio is 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 19.3% in the next year.