CATERPILLAR INC (CAT) Fundamental Analysis & Valuation

NYSE:CAT • US1491231015

Current stock price

889.67 USD
-0.44 (-0.05%)
At close:
889.78 USD
+0.11 (+0.01%)
Pre-Market:

This CAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. CAT Profitability Analysis

1.1 Basic Checks

  • CAT had positive earnings in the past year.
  • CAT had a positive operating cash flow in the past year.
  • Each year in the past 5 years CAT has been profitable.
  • In the past 5 years CAT always reported a positive cash flow from operatings.
CAT Yearly Net Income VS EBIT VS OCF VS FCFCAT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

1.2 Ratios

  • With an excellent Return On Assets value of 9.01%, CAT belongs to the best of the industry, outperforming 80.92% of the companies in the same industry.
  • With an excellent Return On Equity value of 41.67%, CAT belongs to the best of the industry, outperforming 96.95% of the companies in the same industry.
  • CAT has a better Return On Invested Capital (15.00%) than 90.08% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CAT is significantly above the industry average of 10.06%.
Industry RankSector Rank
ROA 9.01%
ROE 41.67%
ROIC 15%
ROA(3y)11.04%
ROA(5y)9.83%
ROE(3y)50.02%
ROE(5y)46.34%
ROIC(3y)18.11%
ROIC(5y)15.55%
CAT Yearly ROA, ROE, ROICCAT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

1.3 Margins

  • With an excellent Profit Margin value of 13.14%, CAT belongs to the best of the industry, outperforming 82.44% of the companies in the same industry.
  • CAT's Profit Margin has improved in the last couple of years.
  • CAT's Operating Margin of 19.17% is amongst the best of the industry. CAT outperforms 87.02% of its industry peers.
  • In the last couple of years the Operating Margin of CAT has grown nicely.
  • With a Gross Margin value of 34.22%, CAT perfoms like the industry average, outperforming 58.78% of the companies in the same industry.
  • CAT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 19.17%
PM (TTM) 13.14%
GM 34.22%
OM growth 3Y5.53%
OM growth 5Y7.81%
PM growth 3Y5.22%
PM growth 5Y12.85%
GM growth 3Y3.59%
GM growth 5Y2.37%
CAT Yearly Profit, Operating, Gross MarginsCAT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

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4

2. CAT Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAT is still creating some value.
  • The number of shares outstanding for CAT has been reduced compared to 1 year ago.
  • Compared to 5 years ago, CAT has less shares outstanding
  • Compared to 1 year ago, CAT has a worse debt to assets ratio.
CAT Yearly Shares OutstandingCAT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
CAT Yearly Total Debt VS Total AssetsCAT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.2 Solvency

  • CAT has an Altman-Z score of 5.46. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
  • CAT has a Altman-Z score of 5.46. This is in the better half of the industry: CAT outperforms 78.63% of its industry peers.
  • The Debt to FCF ratio of CAT is 5.81, which is a neutral value as it means it would take CAT, 5.81 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 5.81, CAT perfoms like the industry average, outperforming 50.38% of the companies in the same industry.
  • CAT has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
  • CAT has a worse Debt to Equity ratio (1.70) than 85.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 5.46
ROIC/WACC1.47
WACC10.19%
CAT Yearly LT Debt VS Equity VS FCFCAT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.3 Liquidity

  • CAT has a Current Ratio of 1.44. This is a normal value and indicates that CAT is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.44, CAT is not doing good in the industry: 73.28% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.94 indicates that CAT may have some problems paying its short term obligations.
  • CAT's Quick ratio of 0.94 is on the low side compared to the rest of the industry. CAT is outperformed by 71.76% of its industry peers.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 0.94
CAT Yearly Current Assets VS Current LiabilitesCAT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

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5

3. CAT Growth Analysis

3.1 Past

  • CAT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.88%.
  • The Earnings Per Share has been growing by 25.66% on average over the past years. This is a very strong growth
  • Looking at the last year, CAT shows a small growth in Revenue. The Revenue has grown by 4.29% in the last year.
  • CAT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.12% yearly.
EPS 1Y (TTM)-0.88%
EPS 3Y10.14%
EPS 5Y25.66%
EPS Q2Q%30.35%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%22.22%

3.2 Future

  • CAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.87% yearly.
  • The Revenue is expected to grow by 7.49% on average over the next years.
EPS Next Y25.78%
EPS Next 2Y23.71%
EPS Next 3Y22.09%
EPS Next 5Y19.87%
Revenue Next Year13.18%
Revenue Next 2Y11.07%
Revenue Next 3Y10.04%
Revenue Next 5Y7.49%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
CAT Yearly Revenue VS EstimatesCAT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2033 20B 40B 60B 80B 100B
CAT Yearly EPS VS EstimatesCAT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30 40

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2

4. CAT Valuation Analysis

4.1 Price/Earnings Ratio

  • CAT is valuated quite expensively with a Price/Earnings ratio of 43.68.
  • Based on the Price/Earnings ratio, CAT is valued a bit more expensive than 61.07% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (26.51), we can say CAT is valued expensively.
  • A Price/Forward Earnings ratio of 30.47 indicates a quite expensive valuation of CAT.
  • Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than the industry average as 60.31% of the companies are valued more cheaply.
  • CAT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.41.
Industry RankSector Rank
PE 43.68
Fwd PE 30.47
CAT Price Earnings VS Forward Price EarningsCAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • CAT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CAT is more expensive than 68.70% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CAT is valued a bit more expensive than the industry average as 61.07% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 55.54
EV/EBITDA 29.03
CAT Per share dataCAT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

  • CAT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of CAT may justify a higher PE ratio.
  • CAT's earnings are expected to grow with 22.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.69
PEG (5Y)1.7
EPS Next 2Y23.71%
EPS Next 3Y22.09%

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6

5. CAT Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.68%, CAT is not a good candidate for dividend investing.
  • CAT's Dividend Yield is comparable with the industry average which is at 1.12.
  • Compared to an average S&P500 Dividend Yield of 1.80, CAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.68%

5.2 History

  • The dividend of CAT is nicely growing with an annual growth rate of 7.31%!
  • CAT has paid a dividend for at least 10 years, which is a reliable track record.
  • CAT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.31%
Div Incr Years12
Div Non Decr Years12
CAT Yearly Dividends per shareCAT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • CAT pays out 30.94% of its income as dividend. This is a sustainable payout ratio.
  • CAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.94%
EPS Next 2Y23.71%
EPS Next 3Y22.09%
CAT Yearly Income VS Free CF VS DividendCAT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B
CAT Dividend Payout.CAT Dividend Payout, showing the Payout Ratio.CAT Dividend Payout.PayoutRetained Earnings

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CAT Fundamentals: All Metrics, Ratios and Statistics

CATERPILLAR INC

NYSE:CAT (5/1/2026, 8:13:28 PM)

Premarket: 889.78 +0.11 (+0.01%)

889.67

-0.44 (-0.05%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Industry Strength85.09
Industry Growth70.19
Earnings (Last)04-30
Earnings (Next)08-03
Inst Owners72.44%
Inst Owner Change0.99%
Ins Owners0.17%
Ins Owner Change1.59%
Market Cap413.95B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts73.53
Price Target771.3 (-13.3%)
Short Float %1.64%
Short Ratio3
Dividend
Industry RankSector Rank
Dividend Yield 0.68%
Yearly Dividend5.83
Dividend Growth(5Y)7.31%
DP30.94%
Div Incr Years12
Div Non Decr Years12
Ex-Date04-20
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.81%
Min EPS beat(2)8.35%
Max EPS beat(2)9.27%
EPS beat(4)2
Avg EPS beat(4)2.47%
Min EPS beat(4)-4.57%
Max EPS beat(4)9.27%
EPS beat(8)5
Avg EPS beat(8)2.78%
EPS beat(12)9
Avg EPS beat(12)7.81%
EPS beat(16)13
Avg EPS beat(16)8.55%
Revenue beat(2)2
Avg Revenue beat(2)5.12%
Min Revenue beat(2)4.11%
Max Revenue beat(2)6.12%
Revenue beat(4)3
Avg Revenue beat(4)1.84%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)6.12%
Revenue beat(8)3
Avg Revenue beat(8)0.14%
Revenue beat(12)6
Avg Revenue beat(12)0.6%
Revenue beat(16)9
Avg Revenue beat(16)0.75%
PT rev (1m)4.74%
PT rev (3m)26.73%
EPS NQ rev (1m)1.28%
EPS NQ rev (3m)4.72%
EPS NY rev (1m)0.42%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)5.77%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)3.22%
Valuation
Industry RankSector Rank
PE 43.68
Fwd PE 30.47
P/S 6.12
P/FCF 55.54
P/OCF 35.26
P/B 19.42
P/tB 26.27
EV/EBITDA 29.03
EPS(TTM)20.37
EY2.29%
EPS(NY)29.2
Fwd EY3.28%
FCF(TTM)16.02
FCFY1.8%
OCF(TTM)25.23
OCFY2.84%
SpS145.26
BVpS45.82
TBVpS33.86
PEG (NY)1.69
PEG (5Y)1.7
Graham Number144.91 (-83.71%)
Profitability
Industry RankSector Rank
ROA 9.01%
ROE 41.67%
ROCE 20.89%
ROIC 15%
ROICexc 17.6%
ROICexgc 19.48%
OM 19.17%
PM (TTM) 13.14%
GM 34.22%
FCFM 11.03%
ROA(3y)11.04%
ROA(5y)9.83%
ROE(3y)50.02%
ROE(5y)46.34%
ROIC(3y)18.11%
ROIC(5y)15.55%
ROICexc(3y)20.74%
ROICexc(5y)17.88%
ROICexgc(3y)23.24%
ROICexgc(5y)20.22%
ROCE(3y)25.14%
ROCE(5y)21.73%
ROICexgc growth 3Y3.65%
ROICexgc growth 5Y11.24%
ROICexc growth 3Y4.66%
ROICexc growth 5Y13.14%
OM growth 3Y5.53%
OM growth 5Y7.81%
PM growth 3Y5.22%
PM growth 5Y12.85%
GM growth 3Y3.59%
GM growth 5Y2.37%
F-Score6
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Debt/EBITDA 2.38
Cap/Depr 189.48%
Cap/Sales 6.34%
Interest Coverage 7.03
Cash Conversion 77.13%
Profit Quality 83.89%
Current Ratio 1.44
Quick Ratio 0.94
Altman-Z 5.46
F-Score6
WACC10.19%
ROIC/WACC1.47
Cap/Depr(3y)161.01%
Cap/Depr(5y)141.05%
Cap/Sales(3y)5.3%
Cap/Sales(5y)5.03%
Profit Quality(3y)86.79%
Profit Quality(5y)82.05%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.88%
EPS 3Y10.14%
EPS 5Y25.66%
EPS Q2Q%30.35%
EPS Next Y25.78%
EPS Next 2Y23.71%
EPS Next 3Y22.09%
EPS Next 5Y19.87%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%22.22%
Revenue Next Year13.18%
Revenue Next 2Y11.07%
Revenue Next 3Y10.04%
Revenue Next 5Y7.49%
EBIT growth 1Y-11.95%
EBIT growth 3Y10.16%
EBIT growth 5Y18.71%
EBIT Next Year37.23%
EBIT Next 3Y24.12%
EBIT Next 5Y19.25%
FCF growth 1Y-15.5%
FCF growth 3Y12.99%
FCF growth 5Y12.09%
OCF growth 1Y-2.46%
OCF growth 3Y14.77%
OCF growth 5Y13.16%

CATERPILLAR INC / CAT Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CATERPILLAR INC (CAT) stock?

ChartMill assigns a fundamental rating of 5 / 10 to CAT.


What is the valuation status of CATERPILLAR INC (CAT) stock?

ChartMill assigns a valuation rating of 1 / 10 to CATERPILLAR INC (CAT). This can be considered as Overvalued.


How profitable is CATERPILLAR INC (CAT) stock?

CATERPILLAR INC (CAT) has a profitability rating of 9 / 10.


Can you provide the expected EPS growth for CAT stock?

The Earnings per Share (EPS) of CATERPILLAR INC (CAT) is expected to grow by 25.78% in the next year.


Is the dividend of CATERPILLAR INC sustainable?

The dividend rating of CATERPILLAR INC (CAT) is 6 / 10 and the dividend payout ratio is 30.94%.