CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CAT1 - US1491231015 - Common Stock
538 EUR
-14 (-2.54%)
We assign a fundamental rating of 5 out of 10 to CAT1. 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 quite expensive at the moment. 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.
- 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 (9.89%) than 87.39% of its industry peers.
- Looking at the Return On Equity, with a value of 44.89%, CAT1 belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
- CAT1's Return On Invested Capital of 16.47% is amongst the best of the industry. CAT1 outperforms 91.89% 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 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
- CAT1's Profit Margin of 14.34% is amongst the best of the industry. CAT1 outperforms 92.79% of its industry peers.
- In the last couple of years the Profit Margin of CAT1 has grown nicely.
- CAT1's Operating Margin of 19.93% is amongst the best of the industry. CAT1 outperforms 91.89% of its industry peers.
- CAT1's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 35.53%, CAT1 perfoms like the industry average, outperforming 40.54% 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 | 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.
- The number of shares outstanding for CAT1 has been reduced compared to 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.
- Looking at the Altman-Z score, with a value of 4.71, CAT1 belongs to the top of the industry, outperforming 88.29% 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.
- With a decent Debt to FCF ratio value of 4.34, CAT1 is doing good in the industry, outperforming 61.26% 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.
- With a Debt to Equity ratio value of 1.56, CAT1 is not doing good in the industry: 85.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.71 |
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.
- Looking at the Current ratio, with a value of 1.38, CAT1 is in line with its industry, outperforming 41.44% of the companies in the same 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 has a worse Quick ratio (0.86) 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.
- 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 -1.51%.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 33.15, CAT1 can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as CAT1.
- When comparing the Price/Earnings ratio of CAT1 to the average of the S&P500 Index (27.25), we can say CAT1 is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 28.01, CAT1 can be considered very expensive at the moment.
- 69.37% of the companies in the same industry are cheaper than CAT1, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, CAT1 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.15 | ||
| Fwd PE | 28.01 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAT1 indicates a slightly more expensive valuation: CAT1 is more expensive than 75.68% of the companies listed 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 | 30.88 | ||
| EV/EBITDA | 21.52 |
4.3 Compensation for Growth
- The excellent profitability rating of CAT1 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
- CAT1 has a yearly dividend return of 0.93%, which is pretty low.
- 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
- 29.36% of the earnings are spent on dividend by CAT1. This is a low number and sustainable payout ratio.
- The dividend of CAT1 is growing, but earnings are growing more, so the dividend growth is 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%.