CATERPILLAR INC (CAT)
US1491231015 - Common Stock
Overall CAT gets a fundamental rating of 6 out of 10. We evaluated CAT against 132 industry peers in the Machinery industry. CAT has an excellent profitability rating, but there are some minor concerns on its financial health. CAT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CAT was profitable.
CAT had a positive operating cash flow in the past year.
In the past 5 years CAT has always been profitable.
In the past 5 years CAT always reported a positive cash flow from operatings.
1.2 Ratios
CAT has a better Return On Assets (11.81%) than 87.60% of its industry peers.
With an excellent Return On Equity value of 53.02%, CAT belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
CAT has a better Return On Invested Capital (19.96%) than 93.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAT is above the industry average of 10.74%.
The 3 year average ROIC (14.39%) for CAT is below the current ROIC(19.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.81% | ||
| ROE | 53.02% | ||
| ROIC | 19.96% |
ROA(3y)9.28%
ROA(5y)7.89%
ROE(3y)44.88%
ROE(5y)39.19%
ROIC(3y)14.39%
ROIC(5y)12.73%
1.3 Margins
The Profit Margin of CAT (15.41%) is better than 89.15% of its industry peers.
In the last couple of years the Profit Margin of CAT has grown nicely.
CAT has a Operating Margin of 22.03%. This is amongst the best in the industry. CAT outperforms 93.80% of its industry peers.
In the last couple of years the Operating Margin of CAT has grown nicely.
The Gross Margin of CAT (36.39%) is better than 69.77% of its industry peers.
CAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.03% | ||
| PM (TTM) | 15.41% | ||
| GM | 36.39% |
OM growth 3Y18.73%
OM growth 5Y5.1%
PM growth 3Y28.99%
PM growth 5Y6.53%
GM growth 3Y6.13%
GM growth 5Y2.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CAT is creating 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
CAT has a better debt/assets ratio than last year.
2.2 Solvency
CAT has an Altman-Z score of 3.80. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
CAT has a better Altman-Z score (3.80) than 65.89% of its industry peers.
The Debt to FCF ratio of CAT is 3.87, which is a good value as it means it would take CAT, 3.87 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAT (3.87) is better than 60.47% of its industry peers.
CAT has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.49, CAT is doing worse than 89.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.8 |
ROIC/WACC2.23
WACC8.97%
2.3 Liquidity
CAT has a Current Ratio of 1.35. 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 1.35, CAT is not doing good in the industry: 77.52% of the companies in the same industry are doing better.
A Quick Ratio of 0.87 indicates that CAT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, CAT is doing worse than 71.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.53% over the past year.
The Earnings Per Share has been growing by 13.62% on average over the past years. This is quite good.
Looking at the last year, CAT shows a quite strong growth in Revenue. The Revenue has grown by 12.84% in the last year.
CAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.15% yearly.
EPS 1Y (TTM)48.53%
EPS 3Y51.58%
EPS 5Y13.62%
EPS growth Q2Q22.48%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y17.11%
Revenue growth 5Y4.15%
Revenue growth Q2Q2.85%
3.2 Future
CAT is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.92% yearly.
The Revenue is expected to grow by 3.12% on average over the next years.
EPS Next Y1.46%
EPS Next 2Y3.46%
EPS Next 3Y5.43%
EPS Next 5Y-4.92%
Revenue Next Year0.19%
Revenue Next 2Y1.55%
Revenue Next 3Y3.18%
Revenue Next 5Y3.12%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.19, CAT is valued correctly.
CAT's Price/Earnings ratio is a bit cheaper when compared to the industry. CAT is cheaper than 72.87% of the companies in the same industry.
CAT is valuated rather cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
CAT is valuated correctly with a Price/Forward Earnings ratio of 15.96.
Based on the Price/Forward Earnings ratio, CAT is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
CAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
CAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAT is cheaper than 63.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAT is valued a bit cheaper than the industry average as 72.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.51 | ||
| EV/EBITDA | 11.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CAT may justify a higher PE ratio.
PEG (NY)11.12
PEG (5Y)1.19
EPS Next 2Y3.46%
EPS Next 3Y5.43%
5. Dividend
5.1 Amount
CAT has a Yearly Dividend Yield of 1.43%.
Compared to an average industry Dividend Yield of 1.71, CAT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, CAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
On average, the dividend of CAT grows each year by 8.72%, which is quite nice.
CAT has been paying a dividend for at least 10 years, so it has a reliable track record.
CAT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.72%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
CAT pays out 24.80% of its income as dividend. This is a sustainable payout ratio.
DP24.8%
EPS Next 2Y3.46%
EPS Next 3Y5.43%
CATERPILLAR INC
NYSE:CAT (4/26/2024, 4:51:09 PM)
After market: 343.4 +0.02 (+0.01%)343.38
+5.38 (+1.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap171.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 15.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)11.12
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.81% | ||
| ROE | 53.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.03% | ||
| PM (TTM) | 15.41% | ||
| GM | 36.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)48.53%
EPS 3Y51.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.84%
Revenue growth 3Y17.11%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y