CATERPILLAR INC (CAT) Fundamental Analysis & Valuation

NYSE:CAT • US1491231015

722.18 USD
-30.14 (-4.01%)
At close: Mar 3, 2026
720.923 USD
-1.26 (-0.17%)
After Hours: 3/3/2026, 9:56:30 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

Taking everything into account, CAT scores 5 out of 10 in our fundamental rating. 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. CAT Profitability Analysis

1.1 Basic Checks

  • In the past year CAT was profitable.
  • CAT had a positive operating cash flow in the past year.
  • CAT had positive earnings in each of the past 5 years.
  • CAT had a positive operating cash flow in each of the past 5 years.
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

  • CAT has a better Return On Assets (9.01%) than 78.46% of its industry peers.
  • The Return On Equity of CAT (41.67%) is better than 96.92% of its industry peers.
  • The Return On Invested Capital of CAT (14.63%) is better than 88.46% 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 10.21%.
Industry RankSector Rank
ROA 9.01%
ROE 41.67%
ROIC 14.63%
ROA(3y)11.04%
ROA(5y)9.83%
ROE(3y)50.02%
ROE(5y)46.34%
ROIC(3y)17.94%
ROIC(5y)15.44%
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

  • CAT's Profit Margin of 13.14% is amongst the best of the industry. CAT outperforms 81.54% of its industry peers.
  • In the last couple of years the Profit Margin of CAT has grown nicely.
  • CAT has a Operating Margin of 18.70%. This is amongst the best in the industry. CAT outperforms 85.38% of its industry peers.
  • In the last couple of years the Operating Margin of CAT has grown nicely.
  • CAT has a Gross Margin of 33.87%. This is comparable to the rest of the industry: CAT outperforms 59.23% of its industry peers.
  • CAT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 18.7%
PM (TTM) 13.14%
GM 33.87%
OM growth 3Y4.3%
OM growth 5Y7.05%
PM growth 3Y5.22%
PM growth 5Y12.85%
GM growth 3Y3.16%
GM growth 5Y2.11%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. CAT Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CAT is creating value.
  • CAT has less shares outstanding than it did 1 year ago.
  • 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.
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 4.97. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
  • CAT's Altman-Z score of 4.97 is fine compared to the rest of the industry. CAT outperforms 73.85% of its industry peers.
  • CAT has a debt to FCF ratio of 5.81. This is a neutral value as CAT would need 5.81 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 5.81, CAT perfoms like the industry average, outperforming 50.00% 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 Debt to Equity ratio of 1.70. This is amonst the worse of the industry: CAT underperforms 85.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 4.97
ROIC/WACC1.65
WACC8.86%
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

  • A Current Ratio of 1.44 indicates that CAT should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.44, CAT is not doing good in the industry: 74.62% 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 70.00% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. CAT Growth Analysis

3.1 Past

  • CAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.88%.
  • The Earnings Per Share has been growing by 25.66% on average over the past years. This is a very strong growth
  • The Revenue has been growing slightly by 4.29% in the past year.
  • Measured over the past years, CAT shows a quite strong growth in Revenue. The Revenue has been growing by 10.12% on average per year.
EPS 1Y (TTM)-12.88%
EPS 3Y10.14%
EPS 5Y25.66%
EPS Q2Q%0.39%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%

3.2 Future

  • CAT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.21% yearly.
  • CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.04% yearly.
EPS Next Y19.3%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
EPS Next 5Y20.21%
Revenue Next Year11.6%
Revenue Next 2Y10.13%
Revenue Next 3Y9.08%
Revenue Next 5Y7.04%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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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1

4. CAT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 37.85, CAT can be considered very expensive at the moment.
  • CAT's Price/Earnings ratio is a bit more expensive when compared to the industry. CAT is more expensive than 63.08% of the companies in the same industry.
  • CAT is valuated rather expensively when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 31.73, which means the current valuation is very expensive for CAT.
  • Based on the Price/Forward Earnings ratio, CAT is valued a bit more expensive than the industry average as 63.08% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.95, CAT is valued a bit more expensive.
Industry RankSector Rank
PE 37.85
Fwd PE 31.73
CAT Price Earnings VS Forward Price EarningsCAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 66.92% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, CAT is valued a bit more expensive than 61.54% of the companies in the same industry.
Industry RankSector Rank
P/FCF 45.35
EV/EBITDA 25.5
CAT Per share dataCAT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAT does not grow enough to justify the current Price/Earnings ratio.
  • CAT has an outstanding profitability rating, which may justify a higher PE ratio.
  • CAT's earnings are expected to grow with 17.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)1.48
EPS Next 2Y20.58%
EPS Next 3Y17.39%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. CAT Dividend Analysis

5.1 Amount

  • CAT has a yearly dividend return of 0.80%, which is pretty low.
  • CAT's Dividend Yield is a higher than the industry average which is at 1.13.
  • Compared to an average S&P500 Dividend Yield of 1.82, CAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.8%

5.2 History

  • The dividend of CAT is nicely growing with an annual growth rate of 7.25%!
  • CAT has been paying a dividend for at least 10 years, so it has a reliable track record.
  • CAT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.25%
Div Incr Years11
Div Non Decr Years11
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

  • 30.94% 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.
DP30.94%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
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 (3/3/2026, 9:56:30 PM)

After market: 720.923 -1.26 (-0.17%)

722.18

-30.14 (-4.01%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners74.11%
Inst Owner Change-3.18%
Ins Owners0.17%
Ins Owner Change-1.08%
Market Cap337.97B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.55
Price Target713.02 (-1.27%)
Short Float %2.14%
Short Ratio3.56
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend5.81
Dividend Growth(5Y)7.25%
DP30.94%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-20
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)17.15%
PT rev (3m)20.9%
EPS NQ rev (1m)1.9%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)0.91%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)4.27%
Revenue NQ rev (3m)3.64%
Revenue NY rev (1m)3.13%
Revenue NY rev (3m)5.61%
Valuation
Industry RankSector Rank
PE 37.85
Fwd PE 31.73
P/S 5
P/FCF 45.35
P/OCF 28.79
P/B 15.85
P/tB 21.45
EV/EBITDA 25.5
EPS(TTM)19.08
EY2.64%
EPS(NY)22.76
Fwd EY3.15%
FCF(TTM)15.93
FCFY2.21%
OCF(TTM)25.08
OCFY3.47%
SpS144.43
BVpS45.55
TBVpS33.67
PEG (NY)1.96
PEG (5Y)1.48
Graham Number139.84
Profitability
Industry RankSector Rank
ROA 9.01%
ROE 41.67%
ROCE 20.38%
ROIC 14.63%
ROICexc 17.17%
ROICexgc 19%
OM 18.7%
PM (TTM) 13.14%
GM 33.87%
FCFM 11.03%
ROA(3y)11.04%
ROA(5y)9.83%
ROE(3y)50.02%
ROE(5y)46.34%
ROIC(3y)17.94%
ROIC(5y)15.44%
ROICexc(3y)20.54%
ROICexc(5y)17.76%
ROICexgc(3y)23.01%
ROICexgc(5y)20.09%
ROCE(3y)24.9%
ROCE(5y)21.59%
ROICexgc growth 3Y2.45%
ROICexgc growth 5Y10.46%
ROICexc growth 3Y3.44%
ROICexc growth 5Y12.35%
OM growth 3Y4.3%
OM growth 5Y7.05%
PM growth 3Y5.22%
PM growth 5Y12.85%
GM growth 3Y3.16%
GM growth 5Y2.11%
F-Score6
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Debt/EBITDA 2.43
Cap/Depr 189.48%
Cap/Sales 6.34%
Interest Coverage 250
Cash Conversion 78.78%
Profit Quality 83.89%
Current Ratio 1.44
Quick Ratio 0.94
Altman-Z 4.97
F-Score6
WACC8.86%
ROIC/WACC1.65
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)-12.88%
EPS 3Y10.14%
EPS 5Y25.66%
EPS Q2Q%0.39%
EPS Next Y19.3%
EPS Next 2Y20.58%
EPS Next 3Y17.39%
EPS Next 5Y20.21%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year11.6%
Revenue Next 2Y10.13%
Revenue Next 3Y9.08%
Revenue Next 5Y7.04%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year32.81%
EBIT Next 3Y20.79%
EBIT Next 5Y20.38%
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 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.


What is the profitability of CAT stock?

CATERPILLAR INC (CAT) has a profitability rating of 8 / 10.


What is the valuation of CATERPILLAR INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CATERPILLAR INC (CAT) is 37.85 and the Price/Book (PB) ratio is 15.85.


Can you provide the expected EPS growth for CAT stock?

The Earnings per Share (EPS) of CATERPILLAR INC (CAT) is expected to grow by 19.3% in the next year.