CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CAT1 - US1491231015 - Common Stock
524 EUR
-14 (-2.6%)
Taking everything into account, CAT1 scores 5 out of 10 in our fundamental rating. CAT1 was compared to 111 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 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.
- In the past year CAT1 had a positive cash flow from operations.
- In the past 5 years CAT1 has always been profitable.
- In the past 5 years CAT1 always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 9.89%, CAT1 belongs to the top of the industry, outperforming 87.39% of the companies in the same industry.
- CAT1's Return On Equity of 44.89% is amongst the best of the industry. CAT1 outperforms 97.30% of its industry peers.
- CAT1's Return On Invested Capital of 16.47% is amongst the best of the industry. CAT1 outperforms 91.89% of its industry peers.
- CAT1 had an Average Return On Invested Capital over the past 3 years of 17.90%. This 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 92.79% of its industry peers.
- In the last couple of years the Profit Margin of CAT1 has grown nicely.
- With an excellent Operating Margin value of 19.93%, CAT1 belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
- In the last couple of years the Operating Margin of CAT1 has grown nicely.
- CAT1 has a Gross Margin of 35.53%. This is comparable to the rest of the industry: CAT1 outperforms 40.54% of its industry peers.
- 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.
- CAT1 has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CAT1 is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.67 indicates that CAT1 is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.67, CAT1 belongs to the best of the industry, outperforming 87.39% of the companies in the same industry.
- 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.
- CAT1 has a Debt to FCF ratio of 4.34. This is in the better half of the industry: CAT1 outperforms 61.26% of its industry peers.
- A Debt/Equity ratio of 1.56 is on the high side and indicates that CAT1 has dependencies on debt financing.
- CAT1 has a Debt to Equity ratio of 1.56. This is amonst the worse of the industry: CAT1 underperforms 85.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.67 |
ROIC/WACC1.75
WACC9.41%
2.3 Liquidity
- CAT1 has a Current Ratio of 1.38. This is a normal value and indicates that CAT1 is financially healthy and should not expect problems in meeting its short term obligations.
- CAT1's Current ratio of 1.38 is in line compared to the rest of the industry. CAT1 outperforms 41.44% of its industry peers.
- A Quick Ratio of 0.86 indicates that CAT1 may have some problems paying its short term obligations.
- The Quick ratio of CAT1 (0.86) is worse than 60.36% 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.
- The Revenue has decreased by -1.51% in the past year.
- CAT1 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, CAT1 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 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
- 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
- CAT1 is valuated quite expensively with a Price/Earnings ratio of 32.55.
- CAT1's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of CAT1 to the average of the S&P500 Index (27.25), we can say CAT1 is valued inline with the index average.
- CAT1 is valuated quite expensively with a Price/Forward Earnings ratio of 27.50.
- CAT1's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CAT1 is more expensive than 69.37% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CAT1 to the average of the S&P500 Index (25.98), we can say CAT1 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.55 | ||
| Fwd PE | 27.5 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CAT1 is valued a bit more expensive than 75.68% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAT1 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.31 | ||
| EV/EBITDA | 21.16 |
4.3 Compensation for Growth
- The excellent profitability rating of CAT1 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.22
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.
- Compared to an average industry Dividend Yield of 1.48, CAT1 has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, CAT1's dividend is way lower than the S&P500 average.
| 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
- CAT1 pays out 29.36% of its income as dividend. This is a 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%.