CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
FRA:CAT1 - Deutsche Boerse Ag - US1491231015 - Common Stock - Currency: EUR
Taking everything into account, CAT1 scores 6 out of 10 in our fundamental rating. CAT1 was compared to 106 industry peers in the Machinery industry. CAT1 scores excellent on profitability, but there are some minor concerns on its financial health. CAT1 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CAT1 was profitable.
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
Looking at the Return On Assets, with a value of 12.30%, CAT1 belongs to the top of the industry, outperforming 93.40% of the companies in the same industry.
CAT1's Return On Equity of 55.37% is amongst the best of the industry. CAT1 outperforms 97.17% of its industry peers.
CAT1's Return On Invested Capital of 19.54% is amongst the best of the industry. CAT1 outperforms 93.40% of its industry peers.
CAT1 had an Average Return On Invested Capital over the past 3 years of 17.74%. This is significantly above the industry average of 8.60%.
The last Return On Invested Capital (19.54%) 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 | 19.54% |
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 95.28% of its industry peers.
CAT1's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.71%, CAT1 belongs to the top of the industry, outperforming 95.28% of the companies in the same industry.
In the last couple of years the Operating Margin of CAT1 has grown nicely.
With a Gross Margin value of 38.16%, CAT1 perfoms like the industry average, outperforming 52.83% of the companies in the same industry.
In the last couple of years the Gross Margin of CAT1 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.71% | ||
| PM (TTM) | 16.65% | ||
| GM | 38.16% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CAT1 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.
CAT1 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.71 indicates that CAT1 is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.71, CAT1 belongs to the top of the industry, outperforming 83.96% 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.
The Debt to FCF ratio of CAT1 (4.35) is comparable to the rest of the 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 83.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 3.71 |
ROIC/WACC2.01
WACC9.72%
2.3 Liquidity
A Current Ratio of 1.42 indicates that CAT1 should not have too much problems paying its short term obligations.
With a Current ratio value of 1.42, CAT1 perfoms like the industry average, outperforming 40.57% of the companies in the same industry.
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.
CAT1 has a Quick ratio of 0.89. This is in the lower half of the industry: CAT1 underperforms 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
CAT1 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.25%.
CAT1 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, CAT1 shows a decrease in Revenue. The Revenue has decreased by -3.36% in the last year.
The Revenue has been growing slightly by 3.79% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.22% on average over the next years. This is quite good.
Based on estimates for the next years, CAT1 will show a quite strong growth in Revenue. The Revenue will grow by 9.61% on average per year.
EPS Next Y-10.42%
EPS Next 2Y-0.25%
EPS Next 3Y3.88%
EPS Next 5Y8.22%
Revenue Next Year-3.77%
Revenue Next 2Y0.24%
Revenue Next 3Y2.11%
Revenue Next 5Y9.61%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CAT1 is valuated correctly with a Price/Earnings ratio of 14.00.
Compared to the rest of the industry, the Price/Earnings ratio of CAT1 indicates a somewhat cheap valuation: CAT1 is cheaper than 66.98% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.87, CAT1 is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 15.63, the valuation of CAT1 can be described as correct.
CAT1's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.38. CAT1 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 15.63 |
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 61.32% 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 | 16.62 | ||
| EV/EBITDA | 10.3 |
4.3 Compensation for Growth
The excellent profitability rating of CAT1 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y-0.25%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
CAT1 has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
The stock price of CAT1 dropped by -25.21% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CAT1's Dividend Yield is a higher than the industry average which is at 3.07.
Compared to the average S&P500 Dividend Yield of 2.46, CAT1 is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of CAT1 grows each year by 7.30%, which is quite nice.
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 2Y-0.25%
EPS Next 3Y3.88%
FRA:CAT1 (4/28/2025, 7:00:00 PM)
270
+1 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap129.04B
Analysts69.68
Price Target310.68 (15.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend4.74
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)-1.35%
Min EPS beat(2)-4.08%
Max EPS beat(2)1.39%
EPS beat(4)3
Avg EPS beat(4)3.08%
Min EPS beat(4)-4.08%
Max EPS beat(4)7.96%
EPS beat(8)7
Avg EPS beat(8)10.48%
EPS beat(12)11
Avg EPS beat(12)10.58%
EPS beat(16)15
Avg EPS beat(16)13.65%
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)-17.32%
PT rev (3m)-16.75%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-15.57%
EPS NY rev (1m)-3.13%
EPS NY rev (3m)-12.2%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-5.97%
Revenue NY rev (1m)-2.05%
Revenue NY rev (3m)-4.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 15.63 | ||
| P/S | 2.26 | ||
| P/FCF | 16.62 | ||
| P/OCF | 12.18 | ||
| P/B | 7.52 | ||
| P/tB | 10.58 | ||
| EV/EBITDA | 10.3 |
EPS(TTM)19.28
EY7.14%
EPS(NY)17.27
Fwd EY6.4%
FCF(TTM)16.25
FCFY6.02%
OCF(TTM)22.17
OCFY8.21%
SpS119.39
BVpS35.91
TBVpS25.52
PEG (NY)N/A
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 55.37% | ||
| ROCE | 26.52% | ||
| ROIC | 19.54% | ||
| ROICexc | 22.08% | ||
| ROICexgc | 24.71% | ||
| OM | 22.71% | ||
| PM (TTM) | 16.65% | ||
| GM | 38.16% | ||
| 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 | 1.88 | ||
| Cap/Depr | 149.33% | ||
| Cap/Sales | 4.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.34% | ||
| Profit Quality | 81.73% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 3.71 |
F-Score7
WACC9.72%
ROIC/WACC2.01
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 Y-10.42%
EPS Next 2Y-0.25%
EPS Next 3Y3.88%
EPS Next 5Y8.22%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-5.01%
Revenue Next Year-3.77%
Revenue Next 2Y0.24%
Revenue Next 3Y2.11%
Revenue Next 5Y9.61%
EBIT growth 1Y-0.4%
EBIT growth 3Y24.6%
EBIT growth 5Y9.05%
EBIT Next Year3.68%
EBIT Next 3Y4.38%
EBIT Next 5Y8.31%
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%