CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CAT1 - US1491231015 - Common Stock
538 EUR
-14 (-2.54%)
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. CAT1 scores excellent on profitability, 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.
- In the past year CAT1 had a positive cash flow from operations.
- Each year in the past 5 years CAT1 has been profitable.
- In the past 5 years CAT1 always reported a positive cash flow from operatings.
1.2 Ratios
- CAT1 has a better Return On Assets (9.89%) than 87.39% of its industry peers.
- The Return On Equity of CAT1 (44.89%) is better than 97.30% of its industry peers.
- CAT1 has a Return On Invested Capital of 16.47%. This is amongst the best in the industry. CAT1 outperforms 91.89% 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 92.79% of its industry peers.
- CAT1's Profit Margin has improved in the last couple of years.
- CAT1 has a better Operating Margin (19.93%) than 91.89% of its industry peers.
- 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.
- 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.
- Compared to 5 years ago, CAT1 has less shares outstanding
- CAT1 has a worse debt/assets ratio than last year.
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 88.29% 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.
- 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.
- CAT1 has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external 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 85.59% of its industry peers.
| 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.
- The Current ratio of CAT1 (1.38) is comparable to the rest of the industry.
- 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
- CAT1 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.32%.
- 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.
- Looking at the last year, CAT1 shows a decrease in Revenue. The Revenue has decreased by -1.51% in the last year.
- The Revenue has been growing slightly by 3.79% on average over the past years.
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.
- CAT1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
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
- With a Price/Earnings ratio of 33.15, CAT1 can be considered very expensive at the moment.
- CAT1's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CAT1 is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 28.01, the valuation of CAT1 can be described as expensive.
- 69.37% of the companies in the same industry are cheaper than CAT1, based on the Price/Forward Earnings ratio.
- 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
- Based on the Enterprise Value to EBITDA ratio, CAT1 is valued a bit more expensive than the industry average as 75.68% of the companies are valued more cheaply.
- 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
- 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
- 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.
- 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
- CAT1 pays out 29.36% of its income as dividend. This is a 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%.