CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
FRA:CAT1 - Deutsche Boerse Ag - US1491231015 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to CAT1. CAT1 was compared to 105 industry peers in the Machinery industry. CAT1 has an excellent profitability rating, but there are some minor concerns on its financial health. CAT1 has a correct valuation and a medium 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
With an excellent Return On Assets value of 12.30%, CAT1 belongs to the best of the industry, outperforming 94.23% of the companies in the same industry.
The Return On Equity of CAT1 (55.37%) is better than 98.08% of its industry peers.
CAT1 has a better Return On Invested Capital (19.54%) than 96.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAT1 is significantly above the industry average of 8.45%.
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
With an excellent Profit Margin value of 16.65%, CAT1 belongs to the best of the industry, outperforming 97.12% of the companies in the same industry.
In the last couple of years the Profit Margin of CAT1 has grown nicely.
CAT1 has a better Operating Margin (22.71%) than 96.15% of its industry peers.
CAT1's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 38.16%, CAT1 perfoms like the industry average, outperforming 51.92% of the companies in the same industry.
CAT1's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, CAT1 has less shares outstanding
Compared to 5 years ago, CAT1 has less shares outstanding
The debt/assets ratio for CAT1 is higher compared to a year ago.
2.2 Solvency
CAT1 has an Altman-Z score of 3.87. This indicates that CAT1 is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.87, CAT1 belongs to the best of the industry, outperforming 90.38% 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 better than 65.38% of its industry peers.
A Debt/Equity ratio of 1.63 is on the high side and indicates that CAT1 has dependencies on debt financing.
With a Debt to Equity ratio value of 1.63, CAT1 is not doing good in the industry: 83.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 3.87 |
ROIC/WACC1.86
WACC10.52%
2.3 Liquidity
A Current Ratio of 1.42 indicates that CAT1 should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.42, CAT1 is in line with its industry, outperforming 43.27% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that CAT1 may have some problems paying its short term obligations.
CAT1 has a Quick ratio of 0.89. This is in the lower half of the industry: CAT1 underperforms 60.58% 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.
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 -3.36% in the last 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)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.
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-7.55%
EPS Next 2Y1.86%
EPS Next 3Y5.01%
EPS Next 5Y8.64%
Revenue Next Year-1.76%
Revenue Next 2Y1.57%
Revenue Next 3Y3.08%
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.
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
CAT1 is valuated correctly with a Price/Earnings ratio of 15.74.
CAT1's Price/Earnings ratio is a bit cheaper when compared to the industry. CAT1 is cheaper than 68.27% of the companies in the same industry.
CAT1's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 17.03, CAT1 is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAT1 is on the same level as its industry peers.
CAT1's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAT1 is valued a bit more expensive than 60.58% 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 | 18.68 | ||
| EV/EBITDA | 11.37 |
4.3 Compensation for Growth
The excellent profitability rating of CAT1 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y1.86%
EPS Next 3Y5.01%
5. Dividend
5.1 Amount
CAT1 has a Yearly Dividend Yield of 1.65%.
Compared to an average industry Dividend Yield of 3.07, CAT1 pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.33, CAT1 is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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 2Y1.86%
EPS Next 3Y5.01%
FRA:CAT1 (3/7/2025, 7:00:00 PM)
317.5
+3 (+0.95%)
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 Cap151.74B
Analysts68.67
Price Target375.76 (18.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend4.96
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)0.4%
PT rev (3m)1.41%
EPS NQ rev (1m)-3.05%
EPS NQ rev (3m)-15.46%
EPS NY rev (1m)-8.36%
EPS NY rev (3m)-9.37%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-5.15%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 17.03 | ||
| P/S | 2.54 | ||
| P/FCF | 18.68 | ||
| P/OCF | 13.69 | ||
| P/B | 8.45 | ||
| P/tB | 11.89 | ||
| EV/EBITDA | 11.37 |
EPS(TTM)20.17
EY6.35%
EPS(NY)18.65
Fwd EY5.87%
FCF(TTM)17
FCFY5.35%
OCF(TTM)23.19
OCFY7.31%
SpS124.9
BVpS37.56
TBVpS26.69
PEG (NY)N/A
PEG (5Y)1.08
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 | 3.87 |
F-Score7
WACC10.52%
ROIC/WACC1.86
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-7.55%
EPS Next 2Y1.86%
EPS Next 3Y5.01%
EPS Next 5Y8.64%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-5.01%
Revenue Next Year-1.76%
Revenue Next 2Y1.57%
Revenue Next 3Y3.08%
Revenue Next 5Y9.61%
EBIT growth 1Y-0.4%
EBIT growth 3Y24.6%
EBIT growth 5Y9.05%
EBIT Next Year6.82%
EBIT Next 3Y5.55%
EBIT Next 5Y10.3%
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%