CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:CAT1 • US1491231015
559 EUR
+22 (+4.1%)
Last: Jan 29, 2026, 07:00 PM
Overall CAT1 gets a fundamental rating of 5 out of 10. We evaluated CAT1 against 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.
- 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
- The Return On Assets of CAT1 (9.89%) is better than 86.49% of its industry peers.
- CAT1 has a better Return On Equity (44.89%) than 96.40% of its industry peers.
- CAT1 has a better Return On Invested Capital (16.47%) than 90.99% 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
- The Profit Margin of CAT1 (14.34%) is better than 91.89% 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 90.99% of its industry peers.
- CAT1's Operating Margin has improved in the last couple of years.
- The Gross Margin of CAT1 (35.53%) is worse than 60.36% 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.
- CAT1 has less shares outstanding than it did 1 year ago.
- CAT1 has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CAT1 is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.85 indicates that CAT1 is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.85, CAT1 belongs to the best of the industry, outperforming 90.09% of the companies in the same industry.
- CAT1 has a debt to FCF ratio of 4.34. This is a neutral value as CAT1 would need 4.34 years to pay back of all of its debts.
- CAT1 has a Debt to FCF ratio of 4.34. This is in the better half of the industry: CAT1 outperforms 60.36% of its industry peers.
- 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: 86.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.85 |
ROIC/WACC1.75
WACC9.43%
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.
- CAT1's Current ratio of 1.38 is in line compared to the rest of the industry. CAT1 outperforms 40.54% of its industry peers.
- 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.
- The Quick ratio of CAT1 (0.86) is worse than 61.26% 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%.
- The Earnings Per Share has been growing by 14.64% on average over the past years. This is quite good.
- The Revenue has decreased by -1.51% in the past year.
- Measured over the past years, CAT1 shows a small growth in Revenue. The Revenue has been growing by 3.79% on average per year.
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
- 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
- A Price/Earnings ratio of 35.09 indicates a quite expensive valuation of CAT1.
- CAT1's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.39. CAT1 is valued slightly more expensive when compared to this.
- CAT1 is valuated quite expensively with a Price/Forward Earnings ratio of 29.66.
- Based on the Price/Forward Earnings ratio, CAT1 is valued a bit more expensive than 74.77% of the companies in the same industry.
- CAT1 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.09 | ||
| Fwd PE | 29.66 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CAT1 is valued a bit more expensive than 79.28% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CAT1 is valued a bit more expensive than 61.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.7 | ||
| EV/EBITDA | 22.67 |
4.3 Compensation for Growth
- The excellent profitability rating of CAT1 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.4
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.
- CAT1's Dividend Yield is comparable with the industry average which is at 1.48.
- 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.
- CAT1's earnings are growing more than its dividend. This makes the dividend growth 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%.