CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
FRA:CAT1 - Deutsche Boerse Ag - US1491231015 - Common Stock - Currency: EUR
CAT1 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 107 industry peers in the Machinery industry. While CAT1 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CAT1 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CAT1 was profitable.
In the past year CAT1 had a positive cash flow from operations.
Each year in the past 5 years CAT1 has been profitable.
CAT1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAT1 has a better Return On Assets (12.30%) than 96.04% of its industry peers.
The Return On Equity of CAT1 (55.37%) is better than 99.01% of its industry peers.
CAT1 has a Return On Invested Capital of 19.49%. This is amongst the best in the industry. CAT1 outperforms 96.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAT1 is significantly above the industry average of 8.38%.
The last Return On Invested Capital (19.49%) for CAT1 is above the 3 year average (17.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 55.37% | ||
| ROIC | 19.49% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.74%
ROIC(5y)14.27%
1.3 Margins
CAT1 has a better Profit Margin (16.65%) than 97.03% of its industry peers.
In the last couple of years the Profit Margin of CAT1 has grown nicely.
The Operating Margin of CAT1 (22.65%) is better than 96.04% of its industry peers.
In the last couple of years the Operating Margin of CAT1 has grown nicely.
The Gross Margin of CAT1 (38.12%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CAT1 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.65% | ||
| PM (TTM) | 16.65% | ||
| GM | 38.12% |
OM growth 3Y15.01%
OM growth 5Y5.07%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.65%
GM growth 5Y3.39%
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.
The number of shares outstanding for CAT1 has been reduced compared to 1 year ago.
CAT1 has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAT1 has a worse debt to assets ratio.
2.2 Solvency
CAT1 has an Altman-Z score of 3.95. This indicates that CAT1 is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.95, CAT1 belongs to the best of the industry, outperforming 91.09% of the companies in the same industry.
CAT1 has a debt to FCF ratio of 4.35. This is a neutral value as CAT1 would need 4.35 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.35, CAT1 is doing good in the industry, outperforming 64.36% of the companies in the same industry.
CAT1 has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
CAT1 has a worse Debt to Equity ratio (1.63) than 88.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 3.95 |
ROIC/WACC2.03
WACC9.62%
2.3 Liquidity
CAT1 has a Current Ratio of 1.42. This is a normal value and indicates that CAT1 is financially healthy and should not expect problems in meeting its short term obligations.
CAT1 has a worse Current ratio (1.42) than 64.36% of its industry peers.
CAT1 has a Quick Ratio of 1.42. This is a bad value and indicates that CAT1 is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CAT1 (0.89) is worse than 63.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.25% over the past year.
The Earnings Per Share has been growing by 14.64% on average over the past years. This is quite good.
CAT1 shows a decrease in Revenue. In the last year, the revenue decreased by -3.36%.
CAT1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
EPS 1Y (TTM)3.25%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-1.72%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-5.01%
3.2 Future
CAT1 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.64% yearly.
CAT1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.55% yearly.
EPS Next Y0.88%
EPS Next 2Y5.47%
EPS Next 3Y3.3%
EPS Next 5Y8.64%
Revenue Next Year0.83%
Revenue Next 2Y3.13%
Revenue Next 3Y6.26%
Revenue Next 5Y9.55%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.49, which indicates a correct valuation of CAT1.
61.39% of the companies in the same industry are more expensive than CAT1, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CAT1 to the average of the S&P500 Index (28.47), we can say CAT1 is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.35 indicates a correct valuation of CAT1.
CAT1's Price/Forward Earnings is on the same level as the industry average.
CAT1's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAT1 is valued a bit more expensive than 65.35% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CAT1.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.77 | ||
| EV/EBITDA | 11.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAT1 does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CAT1 may justify a higher PE ratio.
PEG (NY)18.66
PEG (5Y)1.13
EPS Next 2Y5.47%
EPS Next 3Y3.3%
5. Dividend
5.1 Amount
CAT1 has a Yearly Dividend Yield of 1.50%.
CAT1's Dividend Yield is comparable with the industry average which is at 3.14.
CAT1's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of CAT1 is nicely growing with an annual growth rate of 7.30%!
Dividend Growth(5Y)7.3%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
24.52% of the earnings are spent on dividend by CAT1. This is a low number and sustainable payout ratio.
The dividend of CAT1 is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP24.52%
EPS Next 2Y5.47%
EPS Next 3Y3.3%
CATERPILLAR INC
FRA:CAT1 (2/4/2025, 7:00:00 PM)
349.5
-7 (-1.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.55%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap168.74B
Analysts68.67
Price Target374.26 (7.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend5.39
Dividend Growth(5Y)7.3%
DP24.52%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.26%
Min EPS beat(2)-4.08%
Max EPS beat(2)1.56%
EPS beat(4)3
Avg EPS beat(4)3.13%
Min EPS beat(4)-4.08%
Max EPS beat(4)7.96%
EPS beat(8)7
Avg EPS beat(8)10.5%
EPS beat(12)11
Avg EPS beat(12)10.59%
EPS beat(16)15
Avg EPS beat(16)13.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)-0.86%
Revenue beat(8)3
Avg Revenue beat(8)-0.02%
Revenue beat(12)6
Avg Revenue beat(12)0.38%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)0.28%
PT rev (3m)11.43%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-9.84%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-2.78%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-4.55%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 16.35 | ||
| P/S | 2.69 | ||
| P/FCF | 19.77 | ||
| P/OCF | 14.49 | ||
| P/B | 8.95 | ||
| P/tB | 12.59 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)21.19
EY6.06%
EPS(NY)21.38
Fwd EY6.12%
FCF(TTM)17.68
FCFY5.06%
OCF(TTM)24.12
OCFY6.9%
SpS129.88
BVpS39.06
TBVpS27.76
PEG (NY)18.66
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 55.37% | ||
| ROCE | 26.45% | ||
| ROIC | 19.49% | ||
| ROICexc | 22.03% | ||
| ROICexgc | 24.65% | ||
| OM | 22.65% | ||
| PM (TTM) | 16.65% | ||
| GM | 38.12% | ||
| FCFM | 13.61% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.74%
ROIC(5y)14.27%
ROICexc(3y)20.15%
ROICexc(5y)16.43%
ROICexgc(3y)22.76%
ROICexgc(5y)18.81%
ROCE(3y)24.37%
ROCE(5y)19.52%
ROICexcg growth 3Y19.45%
ROICexcg growth 5Y5.93%
ROICexc growth 3Y21.46%
ROICexc growth 5Y7.23%
OM growth 3Y15.01%
OM growth 5Y5.07%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.65%
GM growth 5Y3.39%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 149.33% | ||
| Cap/Sales | 4.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.5% | ||
| Profit Quality | 81.73% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 3.95 |
F-Score7
WACC9.62%
ROIC/WACC2.03
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)3.25%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-1.72%
EPS Next Y0.88%
EPS Next 2Y5.47%
EPS Next 3Y3.3%
EPS Next 5Y8.64%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-5.01%
Revenue Next Year0.83%
Revenue Next 2Y3.13%
Revenue Next 3Y6.26%
Revenue Next 5Y9.55%
EBIT growth 1Y-0.65%
EBIT growth 3Y24.6%
EBIT growth 5Y9.05%
EBIT Next Year14.89%
EBIT Next 3Y1.04%
EBIT Next 5Y10.29%
FCF growth 1Y-9.94%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y-6.6%
OCF growth 3Y18.69%
OCF growth 5Y11.73%