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. 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.
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 has a Return On Equity of 44.89%. This is amongst the best in the industry. CAT outperforms 96.92% of its industry peers.
With an excellent Return On Invested Capital value of 16.47%, CAT belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAT 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
With an excellent Profit Margin value of 14.34%, CAT belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
CAT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.93%, CAT belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
In the last couple of years the Operating Margin of CAT has grown nicely.
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
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.
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 4.50. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CAT (4.50) is better 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.
With a Debt to FCF ratio value of 4.34, CAT perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
A Debt/Equity ratio of 1.56 is on the high side and indicates that CAT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.56, CAT is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.5 |
ROIC/WACC1.8
WACC9.17%
2.3 Liquidity
A Current Ratio of 1.38 indicates that CAT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, CAT is not doing good in the industry: 79.23% of the companies in the same industry are doing better.
A Quick Ratio of 0.86 indicates that CAT may have some problems paying its short term obligations.
CAT has a Quick ratio of 0.86. This is in the lower half of the industry: CAT underperforms 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for CAT have decreased strongly by -13.32% in the last year.
CAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.64% yearly.
The Revenue has decreased by -1.51% in the past year.
Measured over the past years, CAT shows a small growth in Revenue. The Revenue has been growing by 3.79% on average per year.
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.
Based on estimates for the next years, CAT will show a small growth in Revenue. The Revenue will grow by 4.38% on average per year.
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
Based on the Price/Earnings ratio of 30.21, the valuation of CAT can be described as expensive.
CAT's Price/Earnings ratio is a bit more expensive when compared to the industry. CAT is more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (26.31), we can say CAT is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.18, CAT can be considered very expensive at the moment.
CAT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CAT is more expensive than 60.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. CAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.21 | ||
| Fwd PE | 26.18 |
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 62.31% of the companies listed in the same industry.
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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.90, CAT pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.05, CAT pays less dividend than the S&P500 average, which is at 2.34.
| 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 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%
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 Change0.69%
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
WACC9.17%
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%.