CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CAT1 - US1491231015 - Common Stock
538 EUR
-14 (-2.54%)
Overall CAT1 gets a fundamental rating of 5 out of 10. We evaluated CAT1 against 111 industry peers in the Machinery industry. CAT1 has an excellent profitability rating, but there are some minor concerns on its financial health. CAT1 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- CAT1 had positive earnings in the past year.
- CAT1 had a positive operating cash flow in the past year.
- CAT1 had positive earnings in each of the past 5 years.
- CAT1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 9.89%, CAT1 belongs to the best of the industry, outperforming 87.83% of the companies in the same industry.
- With an excellent Return On Equity value of 44.89%, CAT1 belongs to the best of the industry, outperforming 97.39% of the companies in the same industry.
- The Return On Invested Capital of CAT1 (16.47%) is better than 93.04% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CAT1 is significantly above the industry average of 9.21%.
| 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 CAT1 (14.34%) is better than 93.04% of its industry peers.
- CAT1's Profit Margin has improved in the last couple of years.
- The Operating Margin of CAT1 (19.93%) is better than 90.43% of its industry peers.
- CAT1's Operating Margin has improved in the last couple of years.
- The Gross Margin of CAT1 (35.53%) is comparable to the rest of the industry.
- CAT1'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
- CAT1 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- CAT1 has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for CAT1 has been reduced compared to 5 years ago.
- The debt/assets ratio for CAT1 is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.71 indicates that CAT1 is not in any danger for bankruptcy at the moment.
- CAT1 has a Altman-Z score of 4.71. This is amongst the best in the industry. CAT1 outperforms 87.83% of its industry peers.
- The Debt to FCF ratio of CAT1 is 4.34, which is a neutral value as it means it would take CAT1, 4.34 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.34, CAT1 is in the better half of the industry, outperforming 61.74% of the companies in the same industry.
- A Debt/Equity ratio of 1.56 is on the high side and indicates that CAT1 has dependencies on debt financing.
- CAT1's Debt to Equity ratio of 1.56 is on the low side compared to the rest of the industry. CAT1 is outperformed by 85.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.71 |
ROIC/WACC1.73
WACC9.54%
2.3 Liquidity
- A Current Ratio of 1.38 indicates that CAT1 should not have too much problems paying its short term obligations.
- The Current ratio of CAT1 (1.38) is comparable to the rest of the industry.
- CAT1 has a Quick Ratio of 1.38. This is a bad value and indicates that CAT1 is not financially healthy enough and could expect problems in meeting its short term obligations.
- CAT1's Quick ratio of 0.86 is on the low side compared to the rest of the industry. CAT1 is outperformed by 60.00% 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 CAT1 have decreased strongly by -13.32% in the last year.
- Measured over the past years, CAT1 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.64% on average per year.
- CAT1 shows a decrease in Revenue. In the last year, the revenue decreased by -1.51%.
- Measured over the past years, CAT1 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.
- The Revenue is expected to grow by 4.38% on average over the next years.
EPS Next Y-13.69%
EPS Next 2Y1.49%
EPS Next 3Y6.95%
EPS Next 5Y14.73%
Revenue Next Year2.4%
Revenue Next 2Y5.27%
Revenue Next 3Y6.12%
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
- The Price/Earnings ratio is 33.15, which means the current valuation is very expensive for CAT1.
- The rest of the industry has a similar Price/Earnings ratio as CAT1.
- The average S&P500 Price/Earnings ratio is at 27.21. CAT1 is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 28.01, CAT1 can be considered very expensive at the moment.
- CAT1's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CAT1 is more expensive than 68.70% of the companies in the same industry.
- CAT1's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.15 | ||
| Fwd PE | 28.01 |
4.2 Price Multiples
- CAT1's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CAT1 is more expensive than 74.78% of the companies in the same industry.
- CAT1's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.88 | ||
| EV/EBITDA | 21.52 |
4.3 Compensation for Growth
- CAT1 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.26
EPS Next 2Y1.49%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.93%, CAT1 is not a good candidate for dividend investing.
- CAT1's Dividend Yield is comparable with the industry average which is at 1.48.
- With a Dividend Yield of 0.93, CAT1 pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
- On average, the dividend of CAT1 grows each year by 7.41%, which is quite nice.
Dividend Growth(5Y)7.41%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 29.36% of the earnings are spent on dividend by CAT1. This is a low number and sustainable payout ratio.
- CAT1's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.36%
EPS Next 2Y1.49%
EPS Next 3Y6.95%
CATERPILLAR INC / CAT1.DE FAQ
What is the fundamental rating for CAT1 stock?
ChartMill assigns a fundamental rating of 5 / 10 to CAT1.DE.
What is the valuation status of CATERPILLAR INC (CAT1.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to CATERPILLAR INC (CAT1.DE). This can be considered as Overvalued.
How profitable is CATERPILLAR INC (CAT1.DE) stock?
CATERPILLAR INC (CAT1.DE) has a profitability rating of 9 / 10.
What is the expected EPS growth for CATERPILLAR INC (CAT1.DE) stock?
The Earnings per Share (EPS) of CATERPILLAR INC (CAT1.DE) is expected to decline by -13.69% in the next year.
How sustainable is the dividend of CATERPILLAR INC (CAT1.DE) stock?
The dividend rating of CATERPILLAR INC (CAT1.DE) is 4 / 10 and the dividend payout ratio is 29.36%.