CATERPILLAR INC (CAT) Fundamental Analysis & Valuation

NYSE:CAT • US1491231015

Current stock price

890.11 USD
+80.06 (+9.88%)
At close:
888 USD
-2.11 (-0.24%)
After Hours:

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

  • In the past year CAT was profitable.
  • In the past year CAT had a positive cash flow from operations.
  • 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 Return On Assets of 9.01%. This is amongst the best in the industry. CAT outperforms 80.92% of its industry peers.
  • Looking at the Return On Equity, with a value of 41.67%, CAT belongs to the top of the industry, outperforming 96.95% of the companies in the same industry.
  • The Return On Invested Capital of CAT (14.63%) is better than 89.31% 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 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 has a better Profit Margin (13.14%) than 82.44% of its industry peers.
  • In the last couple of years the Profit Margin of CAT has grown nicely.
  • With an excellent Operating Margin value of 18.70%, CAT belongs to the best of the industry, outperforming 87.02% 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 33.87%. This is comparable to the rest of the industry: CAT outperforms 58.02% 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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4

2. CAT Health Analysis

2.1 Basic Checks

  • CAT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for CAT has been reduced compared to 1 year ago.
  • CAT has less shares outstanding than it did 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

  • CAT has an Altman-Z score of 5.16. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
  • CAT's Altman-Z score of 5.16 is fine compared to the rest of the industry. CAT outperforms 76.34% 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.
  • Looking at the Debt to FCF ratio, with a value of 5.81, CAT is in line with its industry, outperforming 51.15% of the companies in the same 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 5.16
ROIC/WACC1.4
WACC10.42%
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: 73.28% of the companies in the same industry are doing better.
  • 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.
  • With a Quick ratio value of 0.94, CAT is not doing good in the industry: 71.76% of the companies in the same industry are doing better.
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 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
  • CAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.29%.
  • The Revenue has been growing by 10.12% on average over the past years. This is quite good.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.87% yearly.
  • CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.49% yearly.
EPS Next Y20.97%
EPS Next 2Y21.16%
EPS Next 3Y19.84%
EPS Next 5Y19.87%
Revenue Next Year11.7%
Revenue Next 2Y10.16%
Revenue Next 3Y9.06%
Revenue Next 5Y7.49%

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.
  • 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

  • Based on the Price/Earnings ratio of 46.65, the valuation of CAT can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 61.07% of the companies listed in the same industry.
  • CAT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.77.
  • CAT is valuated quite expensively with a Price/Forward Earnings ratio of 38.57.
  • 62.60% of the companies in the same industry are cheaper than CAT, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of CAT to the average of the S&P500 Index (21.75), we can say CAT is valued expensively.
Industry RankSector Rank
PE 46.65
Fwd PE 38.57
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

  • 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 68.70% of the companies listed in the same industry.
  • 61.07% of the companies in the same industry are cheaper than CAT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 55.57
EV/EBITDA 27.16
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 an expensive valuation of the company.
  • CAT has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as CAT's earnings are expected to grow with 19.84% in the coming years.
PEG (NY)2.23
PEG (5Y)1.82
EPS Next 2Y21.16%
EPS Next 3Y19.84%

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6

5. CAT Dividend Analysis

5.1 Amount

  • CAT has a yearly dividend return of 0.72%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.13, CAT has a dividend in line with its industry peers.
  • 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 0.72%

5.2 History

  • The dividend of CAT is nicely growing with an annual growth rate of 7.25%!
  • CAT has paid a dividend for at least 10 years, which is 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 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 2Y21.16%
EPS Next 3Y19.84%
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 (4/30/2026, 6:40:00 PM)

After market: 888 -2.11 (-0.24%)

890.11

+80.06 (+9.88%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Industry Strength85.71
Industry Growth69.57
Earnings (Last)04-30
Earnings (Next)N/A
Inst Owners72.44%
Inst Owner Change0.94%
Ins Owners0.17%
Ins Owner Change1.47%
Market Cap414.16B
Revenue(TTM)67.59B
Net Income(TTM)8.88B
Analysts74.12
Price Target739.88 (-16.88%)
Short Float %1.64%
Short Ratio3
Dividend
Industry RankSector Rank
Dividend Yield 0.72%
Yearly Dividend5.81
Dividend Growth(5Y)7.25%
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)3.77%
PT rev (3m)21.57%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)4.29%
EPS NY rev (1m)0.42%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)5.53%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)3.22%
Valuation
Industry RankSector Rank
PE 46.65
Fwd PE 38.57
P/S 6.13
P/FCF 55.57
P/OCF 35.28
P/B 19.43
P/tB 26.29
EV/EBITDA 27.16
EPS(TTM)19.08
EY2.14%
EPS(NY)23.08
Fwd EY2.59%
FCF(TTM)16.02
FCFY1.8%
OCF(TTM)25.23
OCFY2.83%
SpS145.26
BVpS45.82
TBVpS33.86
PEG (NY)2.23
PEG (5Y)1.82
Graham Number140.246 (-84.24%)
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 5.16
F-Score6
WACC10.42%
ROIC/WACC1.4
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 Y20.97%
EPS Next 2Y21.16%
EPS Next 3Y19.84%
EPS Next 5Y19.87%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y4.38%
Revenue growth 5Y10.12%
Sales Q2Q%18%
Revenue Next Year11.7%
Revenue Next 2Y10.16%
Revenue Next 3Y9.06%
Revenue Next 5Y7.49%
EBIT growth 1Y-14.12%
EBIT growth 3Y8.88%
EBIT growth 5Y17.88%
EBIT Next Year33.63%
EBIT Next 3Y21.38%
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 20.97% 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%.