CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
FRA:CAT1 - Deutsche Boerse Ag - US1491231015 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to CAT1. CAT1 was compared to 103 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 does not seem to be growing, but still is valued 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
CAT1 has a better Return On Assets (11.70%) than 92.23% of its industry peers.
The Return On Equity of CAT1 (55.01%) is better than 98.06% of its industry peers.
CAT1's Return On Invested Capital of 19.67% is amongst the best of the industry. CAT1 outperforms 93.20% 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 8.83%.
The last Return On Invested Capital (19.67%) for CAT1 is above the 3 year average (17.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.7% | ||
| ROE | 55.01% | ||
| ROIC | 19.67% |
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 15.71% is amongst the best of the industry. CAT1 outperforms 94.17% of its industry peers.
In the last couple of years the Profit Margin of CAT1 has grown nicely.
Looking at the Operating Margin, with a value of 21.83%, CAT1 belongs to the top of the industry, outperforming 94.17% of the companies in the same industry.
CAT1's Operating Margin has improved in the last couple of years.
The Gross Margin of CAT1 (37.68%) is comparable to the rest of the industry.
CAT1's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.83% | ||
| PM (TTM) | 15.71% | ||
| GM | 37.68% |
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.
Compared to 1 year ago, CAT1 has less shares outstanding
The number of shares outstanding for CAT1 has been reduced compared to 5 years ago.
Compared to 1 year ago, CAT1 has a worse debt to assets ratio.
2.2 Solvency
CAT1 has an Altman-Z score of 4.07. This indicates that CAT1 is financially healthy and has little risk of bankruptcy at the moment.
CAT1 has a Altman-Z score of 4.07. This is amongst the best in the industry. CAT1 outperforms 84.47% of its industry peers.
CAT1 has a debt to FCF ratio of 4.90. This is a neutral value as CAT1 would need 4.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.90, CAT1 is in line with its industry, outperforming 58.25% of the companies in the same industry.
A Debt/Equity ratio of 1.62 is on the high side and indicates that CAT1 has dependencies on debt financing.
CAT1 has a worse Debt to Equity ratio (1.62) than 89.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 4.07 |
ROIC/WACC2.02
WACC9.74%
2.3 Liquidity
CAT1 has a Current Ratio of 1.32. 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 (1.32) is worse than 66.99% of its industry peers.
CAT1 has a Quick Ratio of 1.32. This is a bad value and indicates that CAT1 is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.77, CAT1 is not doing good in the industry: 72.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
CAT1 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.16%.
CAT1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.64% yearly.
CAT1 shows a decrease in Revenue. In the last year, the revenue decreased by -5.58%.
The Revenue has been growing slightly by 3.79% on average over the past years.
EPS 1Y (TTM)-6.16%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-24.11%
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-9.81%
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 8.22% yearly.
CAT1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.92% yearly.
EPS Next Y-14.2%
EPS Next 2Y-1.95%
EPS Next 3Y3.03%
EPS Next 5Y8.22%
Revenue Next Year-2.64%
Revenue Next 2Y1.13%
Revenue Next 3Y2.71%
Revenue Next 5Y3.92%
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 decreasing.
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
A Price/Earnings ratio of 18.82 indicates a rather expensive valuation of CAT1.
Compared to the rest of the industry, the Price/Earnings ratio of CAT1 is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CAT1 to the average of the S&P500 Index (27.15), we can say CAT1 is valued slightly cheaper.
CAT1 is valuated rather expensively with a Price/Forward Earnings ratio of 18.37.
60.19% of the companies in the same industry are cheaper than CAT1, based on the Price/Forward Earnings ratio.
CAT1 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 18.37 |
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 66.02% of the companies listed 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 | 23.1 | ||
| EV/EBITDA | 13.33 |
4.3 Compensation for Growth
The excellent profitability rating of CAT1 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.29
EPS Next 2Y-1.95%
EPS Next 3Y3.03%
5. Dividend
5.1 Amount
CAT1 has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
CAT1's Dividend Yield is comparable with the industry average which is at 2.93.
CAT1's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
The dividend of CAT1 is nicely growing with an annual growth rate of 7.41%!
Dividend Growth(5Y)7.41%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
26.88% 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.
DP26.88%
EPS Next 2Y-1.95%
EPS Next 3Y3.03%
FRA:CAT1 (6/30/2025, 7:00:00 PM)
330.5
+1 (+0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.13%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap155.44B
Analysts75
Price Target329.23 (-0.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend4.63
Dividend Growth(5Y)7.41%
DP26.88%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.9%
Min EPS beat(2)-3.19%
Max EPS beat(2)1.39%
EPS beat(4)2
Avg EPS beat(4)0.3%
Min EPS beat(4)-4.08%
Max EPS beat(4)7.07%
EPS beat(8)6
Avg EPS beat(8)6.5%
EPS beat(12)10
Avg EPS beat(12)9.51%
EPS beat(16)14
Avg EPS beat(16)10.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.9%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-2.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.86%
Revenue beat(8)2
Avg Revenue beat(8)-0.87%
Revenue beat(12)5
Avg Revenue beat(12)0.03%
Revenue beat(16)8
Avg Revenue beat(16)0.28%
PT rev (1m)0.27%
PT rev (3m)-7.97%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-6.27%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-7.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 18.37 | ||
| P/S | 2.88 | ||
| P/FCF | 23.1 | ||
| P/OCF | 16.14 | ||
| P/B | 10.07 | ||
| P/tB | 14.63 | ||
| EV/EBITDA | 13.33 |
EPS(TTM)17.56
EY5.31%
EPS(NY)17.99
Fwd EY5.44%
FCF(TTM)14.31
FCFY4.33%
OCF(TTM)20.48
OCFY6.2%
SpS114.92
BVpS32.82
TBVpS22.59
PEG (NY)N/A
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.7% | ||
| ROE | 55.01% | ||
| ROCE | 26.37% | ||
| ROIC | 19.67% | ||
| ROICexc | 21.01% | ||
| ROICexgc | 23.55% | ||
| OM | 21.83% | ||
| PM (TTM) | 15.71% | ||
| GM | 37.68% | ||
| FCFM | 12.45% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.9%
ROIC(5y)14.36%
ROICexc(3y)20.33%
ROICexc(5y)16.54%
ROICexgc(3y)22.96%
ROICexgc(5y)18.93%
ROCE(3y)24.59%
ROCE(5y)19.65%
ROICexcg growth 3Y20.44%
ROICexcg growth 5Y6.45%
ROICexc growth 3Y22.47%
ROICexc growth 5Y7.76%
OM growth 3Y15.96%
OM growth 5Y5.59%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.82%
GM growth 5Y3.49%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 156.62% | ||
| Cap/Sales | 5.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.54% | ||
| Profit Quality | 79.23% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 4.07 |
F-Score5
WACC9.74%
ROIC/WACC2.02
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)-6.16%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-24.11%
EPS Next Y-14.2%
EPS Next 2Y-1.95%
EPS Next 3Y3.03%
EPS Next 5Y8.22%
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-9.81%
Revenue Next Year-2.64%
Revenue Next 2Y1.13%
Revenue Next 3Y2.71%
Revenue Next 5Y3.92%
EBIT growth 1Y-8.1%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-1.31%
EBIT Next 3Y3.26%
EBIT Next 5Y8.31%
FCF growth 1Y23.9%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y24.88%
OCF growth 3Y18.69%
OCF growth 5Y11.73%