CATERPILLAR INC (CAT) Fundamental Analysis & Valuation

NYSE:CAT • US1491231015

Current stock price

717.22 USD
-13.1 (-1.79%)
At close:
717.55 USD
+0.33 (+0.05%)
After Hours:

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

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.
  • Each year in the past 5 years CAT has been profitable.
  • 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 Return On Assets of 9.01%. This is in the better half of the industry: CAT outperforms 79.39% of its industry peers.
  • 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 Return On Invested Capital of 14.63%. This is amongst the best in the industry. CAT outperforms 89.31% of its industry peers.
  • CAT had an Average Return On Invested Capital over the past 3 years of 17.94%. This is significantly above the industry average of 10.17%.
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

  • With an excellent Profit Margin value of 13.14%, CAT belongs to the best of the industry, outperforming 80.92% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CAT has grown nicely.
  • CAT's Operating Margin of 18.70% 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.
  • The Gross Margin of CAT (33.87%) is comparable to the rest of the industry.
  • 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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4

2. CAT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAT is creating some value.
  • The number of shares outstanding for CAT has been reduced compared to 1 year ago.
  • The number of shares outstanding for CAT has been reduced compared to 5 years ago.
  • The debt/assets ratio for CAT is higher compared to a year ago.
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

  • An Altman-Z score of 4.82 indicates that CAT is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.82, CAT is doing good in the industry, outperforming 73.28% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of CAT (5.81) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.70 is on the high side and indicates that CAT has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.70, CAT is not doing good in the industry: 85.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF 5.81
Altman-Z 4.82
ROIC/WACC1.46
WACC10.03%
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.
  • The Current ratio of CAT (1.44) is worse than 73.28% of its industry peers.
  • CAT has a Quick Ratio of 1.44. This is a bad value and indicates that CAT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • CAT has a Quick ratio of 0.94. This is in the lower half of the industry: CAT underperforms 69.47% 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

  • The earnings per share for CAT have decreased strongly by -12.88% in the last year.
  • CAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.66% yearly.
  • The Revenue has been growing slightly by 4.29% in the past 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)-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

  • Based on estimates for the next years, CAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.90% on average per year.
  • CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.51% yearly.
EPS Next Y20.46%
EPS Next 2Y20.74%
EPS Next 3Y19.31%
EPS Next 5Y19.9%
Revenue Next Year11.77%
Revenue Next 2Y10.2%
Revenue Next 3Y9%
Revenue Next 5Y7.51%

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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1

4. CAT Valuation Analysis

4.1 Price/Earnings Ratio

  • CAT is valuated quite expensively with a Price/Earnings ratio of 37.59.
  • CAT's Price/Earnings ratio is a bit more expensive when compared to the industry. CAT is more expensive than 62.60% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (25.60), we can say CAT is valued slightly more expensively.
  • The Price/Forward Earnings ratio is 31.21, 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 61.83% of the companies are valued more cheaply.
  • CAT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 37.59
Fwd PE 31.21
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

  • Based on the Enterprise Value to EBITDA ratio, CAT is valued a bit more expensive than the industry average as 68.70% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, CAT is valued a bit more expensive than 61.07% of the companies in the same industry.
Industry RankSector Rank
P/FCF 44.78
EV/EBITDA 24.26
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 19.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.84
PEG (5Y)1.47
EPS Next 2Y20.74%
EPS Next 3Y19.31%

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6

5. CAT Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.86%, CAT is not a good candidate for dividend investing.
  • CAT's Dividend Yield is a higher than the industry average which is at 1.20.
  • Compared to an average S&P500 Dividend Yield of 1.88, CAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.86%

5.2 History

  • On average, the dividend of CAT grows each year by 7.25%, which is quite nice.
  • 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)7.25%
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

  • 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 2Y20.74%
EPS Next 3Y19.31%
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 (4/2/2026, 8:11:34 PM)

After market: 717.55 +0.33 (+0.05%)

717.22

-13.1 (-1.79%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners72.31%
Inst Owner Change-3.14%
Ins Owners0.17%
Ins Owner Change0.58%
Market Cap333.72B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.12
Price Target736.42 (2.68%)
Short Float %1.65%
Short Ratio2.58
Dividend
Industry RankSector Rank
Dividend Yield 0.86%
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)3.28%
PT rev (3m)23.25%
EPS NQ rev (1m)1.46%
EPS NQ rev (3m)3.24%
EPS NY rev (1m)0.97%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)4.37%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)3.33%
Valuation
Industry RankSector Rank
PE 37.59
Fwd PE 31.21
P/S 4.94
P/FCF 44.78
P/OCF 28.43
P/B 15.65
P/tB 21.18
EV/EBITDA 24.26
EPS(TTM)19.08
EY2.66%
EPS(NY)22.98
Fwd EY3.2%
FCF(TTM)16.02
FCFY2.23%
OCF(TTM)25.23
OCFY3.52%
SpS145.26
BVpS45.82
TBVpS33.86
PEG (NY)1.84
PEG (5Y)1.47
Graham Number140.25
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 4.82
F-Score6
WACC10.03%
ROIC/WACC1.46
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 Y20.46%
EPS Next 2Y20.74%
EPS Next 3Y19.31%
EPS Next 5Y19.9%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year11.77%
Revenue Next 2Y10.2%
Revenue Next 3Y9%
Revenue Next 5Y7.51%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year32.81%
EBIT Next 3Y20.79%
EBIT Next 5Y19.31%
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 8 / 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 20.46% 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%.