CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - NYSE:CAT - US1491231015 - Common Stock
553.11 USD
+6.23 (+1.14%)
558 USD
+4.89 (+0.88%)
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. While CAT belongs to the best of the industry regarding profitability, 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.
CAT had a positive operating cash flow in the past year.
CAT had positive earnings in each of the past 5 years.
In the past 5 years CAT always reported a positive cash flow from operatings.
1.2 Ratios
CAT has a better Return On Assets (9.89%) than 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.
The Return On Invested Capital of CAT (16.47%) is better than 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 10.24%.
| 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.
The Operating Margin of CAT (19.93%) is better than 89.23% of its industry peers.
In the last couple of years the Operating Margin of CAT has grown nicely.
CAT's Gross Margin of 35.53% is fine compared to the rest of the industry. CAT outperforms 65.38% 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
CAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CAT has been reduced compared to 1 year ago.
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
An Altman-Z score of 4.41 indicates that CAT is not in any danger for bankruptcy at the moment.
The Altman-Z score of CAT (4.41) is better than 72.31% 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 in line with its industry peers.
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 85.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.41 |
ROIC/WACC1.77
WACC9.31%
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.
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%.
Measured over the past years, CAT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.64% on average per year.
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.
The Revenue is expected to grow by 3.92% on average over the next years.
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 5Y3.92%
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 29.02 indicates a quite expensive valuation of CAT.
Based on the Price/Earnings ratio, CAT is valued a bit more expensive than the industry average as 60.77% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 25.47, CAT is valued at the same level.
A Price/Forward Earnings ratio of 25.15 indicates a quite expensive valuation of CAT.
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 (35.42), we can say CAT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.02 | ||
| Fwd PE | 25.15 |
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 63.08% 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 | 27.06 | ||
| EV/EBITDA | 19.1 |
4.3 Compensation for Growth
The excellent profitability rating of CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y0.21%
EPS Next 3Y6.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, CAT has a reasonable but not impressive dividend return.
CAT's Dividend Yield is a higher than the industry average which is at 1.87.
Compared to an average S&P500 Dividend Yield of 2.44, CAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
CAT pays out 29.36% of its income as dividend. This is a 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%
553.11
+6.23 (+1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners71.95%
Inst Owner Change0.79%
Ins Owners0.18%
Ins Owner Change-4.39%
Market Cap259.12B
Revenue(TTM)64.67B
Net Income(TTM)9.27B
Analysts73.13
Price Target499.54 (-9.69%)
Short Float %1.45%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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)9.63%
PT rev (3m)23.5%
EPS NQ rev (1m)8.18%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)2.43%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)3.3%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)3.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.02 | ||
| Fwd PE | 25.15 | ||
| P/S | 4.01 | ||
| P/FCF | 27.06 | ||
| P/OCF | 19.11 | ||
| P/B | 12.54 | ||
| P/tB | 17.22 | ||
| EV/EBITDA | 19.1 |
EPS(TTM)19.06
EY3.45%
EPS(NY)21.99
Fwd EY3.98%
FCF(TTM)20.44
FCFY3.7%
OCF(TTM)28.94
OCFY5.23%
SpS138.04
BVpS44.1
TBVpS32.12
PEG (NY)N/A
PEG (5Y)1.98
Graham Number137.51
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 | 4.41 |
F-Score5
WACC9.31%
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 5Y3.92%
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%.