CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - NYSE:CAT - US1491231015 - Common Stock
531.18 USD
+4.1 (+0.78%)
531.16 USD
-0.02 (0%)
We assign a fundamental rating of 6 out of 10 to CAT. CAT was compared to 130 industry peers in the Machinery industry. While CAT has a great profitability rating, there are some minor concerns on its financial health. CAT is quite expensive at the moment. It does show a decent growth rate. Finally CAT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAT had positive earnings in the past year.
CAT had a positive operating cash flow in the past year.
CAT had positive earnings in each of the past 5 years.
Each year in the past 5 years CAT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.45%, CAT belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
CAT has a Return On Equity of 50.57%. This is amongst the best in the industry. CAT outperforms 97.69% of its industry peers.
CAT has a Return On Invested Capital of 17.25%. This is amongst the best in the industry. CAT outperforms 93.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAT is significantly above the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 50.57% | ||
| ROIC | 17.25% |
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
Looking at the Profit Margin, with a value of 14.95%, CAT belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
CAT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.57%, CAT belongs to the top of the industry, outperforming 91.54% of the companies in the same industry.
CAT's Operating Margin has improved in the last couple of years.
CAT has a Gross Margin of 36.53%. This is in the better half of the industry: CAT outperforms 66.92% of its industry peers.
CAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.57% | ||
| PM (TTM) | 14.95% | ||
| GM | 36.53% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CAT is creating value.
Compared to 1 year ago, CAT has less shares outstanding
The number of shares outstanding for CAT has been reduced compared to 5 years ago.
Compared to 1 year ago, CAT has a worse debt to assets ratio.
2.2 Solvency
CAT has an Altman-Z score of 4.38. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
CAT's Altman-Z score of 4.38 is fine compared to the rest of the industry. CAT outperforms 69.23% of its industry peers.
The Debt to FCF ratio of CAT is 5.26, which is a neutral value as it means it would take CAT, 5.26 years of fcf income to pay off all of its debts.
CAT's Debt to FCF ratio of 5.26 is in line compared to the rest of the industry. CAT outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 1.74 is on the high side and indicates that CAT has dependencies on debt financing.
CAT's Debt to Equity ratio of 1.74 is on the low side compared to the rest of the industry. CAT is outperformed by 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 4.38 |
ROIC/WACC1.87
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.34 indicates that CAT should not have too much problems paying its short term obligations.
CAT has a worse Current ratio (1.34) than 81.54% of its industry peers.
A Quick Ratio of 0.81 indicates that CAT may have some problems paying its short term obligations.
CAT has a Quick ratio of 0.81. This is in the lower half of the industry: CAT underperforms 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for CAT have decreased strongly by -13.70% in the last year.
Measured over the past years, CAT 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, CAT shows a decrease in Revenue. The Revenue has decreased by -4.87% in the last year.
Measured over the past years, CAT shows a small growth in Revenue. The Revenue has been growing by 3.79% on average per year.
EPS 1Y (TTM)-13.7%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-21.2%
Revenue 1Y (TTM)-4.87%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-0.72%
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 10.23% yearly.
CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.92% yearly.
EPS Next Y-17.51%
EPS Next 2Y-1.47%
EPS Next 3Y3.51%
EPS Next 5Y10.23%
Revenue Next Year-0.46%
Revenue Next 2Y2.91%
Revenue Next 3Y4%
Revenue Next 5Y3.92%
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.
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 27.55, CAT can be considered very expensive at the moment.
CAT's Price/Earnings is on the same level as the industry average.
CAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.69.
The Price/Forward Earnings ratio is 24.99, which indicates a rather expensive current valuation of CAT.
CAT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.18. CAT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.55 | ||
| Fwd PE | 24.99 |
4.2 Price Multiples
CAT's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.15 | ||
| EV/EBITDA | 18.43 |
4.3 Compensation for Growth
CAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.88
EPS Next 2Y-1.47%
EPS Next 3Y3.51%
5. Dividend
5.1 Amount
CAT has a Yearly Dividend Yield of 1.12%.
CAT's Dividend Yield is a higher than the industry average which is at 1.80.
Compared to an average S&P500 Dividend Yield of 2.34, CAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
The dividend of CAT is nicely growing with an annual growth rate of 7.41%!
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)7.41%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
28.60% of the earnings are spent on dividend by CAT. This is a low number and sustainable payout ratio.
The dividend of CAT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.6%
EPS Next 2Y-1.47%
EPS Next 3Y3.51%
531.18
+4.1 (+0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners71.95%
Inst Owner Change0.01%
Ins Owners0.18%
Ins Owner Change-1.31%
Market Cap248.85B
Analysts75
Price Target455.66 (-14.22%)
Short Float %1.49%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend5.41
Dividend Growth(5Y)7.41%
DP28.6%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.88%
Min EPS beat(2)-4.57%
Max EPS beat(2)-3.19%
EPS beat(4)1
Avg EPS beat(4)-2.61%
Min EPS beat(4)-4.57%
Max EPS beat(4)1.39%
EPS beat(8)5
Avg EPS beat(8)3.44%
EPS beat(12)9
Avg EPS beat(12)8.74%
EPS beat(16)13
Avg EPS beat(16)9.79%
Revenue beat(2)1
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)0.9%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)0.9%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)6
Avg Revenue beat(12)0.25%
Revenue beat(16)8
Avg Revenue beat(16)0.25%
PT rev (1m)1.1%
PT rev (3m)15.92%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-4.66%
EPS NY rev (1m)-2.16%
EPS NY rev (3m)-3.99%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)5.76%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.55 | ||
| Fwd PE | 24.99 | ||
| P/S | 3.94 | ||
| P/FCF | 32.15 | ||
| P/OCF | 21.88 | ||
| P/B | 13.34 | ||
| P/tB | 19.13 | ||
| EV/EBITDA | 18.43 |
EPS(TTM)19.28
EY3.63%
EPS(NY)21.26
Fwd EY4%
FCF(TTM)16.52
FCFY3.11%
OCF(TTM)24.28
OCFY4.57%
SpS134.77
BVpS39.83
TBVpS27.77
PEG (NY)N/A
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 50.57% | ||
| ROCE | 23.44% | ||
| ROIC | 17.25% | ||
| ROICexc | 18.97% | ||
| ROICexgc | 21.17% | ||
| OM | 20.57% | ||
| PM (TTM) | 14.95% | ||
| GM | 36.53% | ||
| FCFM | 12.26% |
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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 165.74% | ||
| Cap/Sales | 5.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.93% | ||
| Profit Quality | 82.02% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 4.38 |
F-Score5
WACC9.22%
ROIC/WACC1.87
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)-13.7%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-21.2%
EPS Next Y-17.51%
EPS Next 2Y-1.47%
EPS Next 3Y3.51%
EPS Next 5Y10.23%
Revenue 1Y (TTM)-4.87%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-0.72%
Revenue Next Year-0.46%
Revenue Next 2Y2.91%
Revenue Next 3Y4%
Revenue Next 5Y3.92%
EBIT growth 1Y-14.31%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-5.47%
EBIT Next 3Y5.38%
EBIT Next 5Y10.41%
FCF growth 1Y6.61%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y13.25%
OCF growth 3Y18.69%
OCF growth 5Y11.73%