CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAT - US1491231015 - Common Stock
594.36 USD
-2.14 (-0.36%)
594.3 USD
-0.06 (-0.01%)
Overall CAT gets a fundamental rating of 5 out of 10. We evaluated CAT against 130 industry peers in the Machinery industry. CAT has an excellent profitability rating, 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. Finally 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.
Each year in the past 5 years CAT has 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 fine compared to the rest of the industry. CAT outperforms 80.00% 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.
The Return On Invested Capital of CAT (16.47%) is better 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 10.46%.
| 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 has a Profit Margin of 14.34%. This is amongst the best in the industry. CAT outperforms 84.62% of its industry peers.
In the last couple of years the Profit Margin of CAT has grown nicely.
CAT has a better Operating Margin (19.93%) than 89.23% of its industry peers.
CAT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.53%, CAT is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
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
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
Compared to 1 year ago, CAT has a worse debt to assets ratio.
2.2 Solvency
CAT has an Altman-Z score of 4.58. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.58, CAT is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
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.
The Debt to FCF ratio of CAT (4.34) is comparable to the rest of the industry.
CAT has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
CAT's Debt to Equity ratio of 1.56 is on the low side compared to the rest of the industry. CAT is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.58 |
ROIC/WACC1.75
WACC9.4%
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 78.46% of its industry peers.
A Quick Ratio of 0.86 indicates that CAT may have some problems paying its short term obligations.
The Quick ratio of CAT (0.86) is worse than 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.
Looking at the last year, CAT shows a decrease in Revenue. The Revenue has decreased by -1.51% in the last 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
The Earnings Per Share is expected to grow by 14.73% on average over the next years. This is quite good.
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-13.6%
EPS Next 2Y1.12%
EPS Next 3Y6.69%
EPS Next 5Y14.73%
Revenue Next Year2.36%
Revenue Next 2Y5.21%
Revenue Next 3Y6%
Revenue Next 5Y4.38%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 31.18 indicates a quite expensive valuation of CAT.
CAT's Price/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.
Compared to an average S&P500 Price/Earnings ratio of 26.28, CAT is valued at the same level.
With a Price/Forward Earnings ratio of 26.54, 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.
CAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.18 | ||
| Fwd PE | 26.54 |
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 64.62% 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 | 29.05 | ||
| EV/EBITDA | 20.43 |
4.3 Compensation for Growth
The excellent profitability rating of CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.13
EPS Next 2Y1.12%
EPS Next 3Y6.69%
5. Dividend
5.1 Amount
CAT has a Yearly Dividend Yield of 1.01%.
Compared to an average industry Dividend Yield of 1.84, CAT pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.01, CAT pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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 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 2Y1.12%
EPS Next 3Y6.69%
594.36
-2.14 (-0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.14%
Inst Owner Change0.75%
Ins Owners0.18%
Ins Owner Change-2.19%
Market Cap278.15B
Revenue(TTM)64.67B
Net Income(TTM)9.27B
Analysts74.55
Price Target596.06 (0.29%)
Short Float %1.37%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)19.32%
PT rev (3m)33.28%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)6.82%
EPS NY rev (1m)2.25%
EPS NY rev (3m)2.47%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)4.2%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.18 | ||
| Fwd PE | 26.54 | ||
| P/S | 4.3 | ||
| P/FCF | 29.05 | ||
| P/OCF | 20.52 | ||
| P/B | 13.46 | ||
| P/tB | 18.48 | ||
| EV/EBITDA | 20.43 |
EPS(TTM)19.06
EY3.21%
EPS(NY)22.39
Fwd EY3.77%
FCF(TTM)20.46
FCFY3.44%
OCF(TTM)28.97
OCFY4.87%
SpS138.19
BVpS44.14
TBVpS32.16
PEG (NY)N/A
PEG (5Y)2.13
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 | 4.58 |
F-Score5
WACC9.4%
ROIC/WACC1.75
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-13.6%
EPS Next 2Y1.12%
EPS Next 3Y6.69%
EPS Next 5Y14.73%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%9.51%
Revenue Next Year2.36%
Revenue Next 2Y5.21%
Revenue Next 3Y6%
Revenue Next 5Y4.38%
EBIT growth 1Y-13.68%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-1.19%
EBIT Next 3Y9.01%
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 -13.6% 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%.