CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - NYSE:CAT - US1491231015 - Common Stock
466.54 USD
-0.42 (-0.09%)
466.54 USD
0 (0%)
Overall CAT gets a fundamental rating of 6 out of 10. We evaluated CAT against 129 industry peers in the Machinery industry. While CAT belongs to the best of the industry regarding profitability, 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. CAT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAT had positive earnings in the past year.
In the past year CAT had a positive cash flow from operations.
Each year in the past 5 years CAT has been profitable.
Each year in the past 5 years CAT had a positive operating cash flow.
1.2 Ratios
CAT has a Return On Assets of 10.45%. This is amongst the best in the industry. CAT outperforms 82.81% of its industry peers.
The Return On Equity of CAT (50.57%) is better than 97.66% of its industry peers.
CAT's Return On Invested Capital of 17.25% is amongst the best of the industry. CAT outperforms 92.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAT is significantly above the industry average of 10.02%.
| 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
The Profit Margin of CAT (14.95%) is better than 89.84% of its industry peers.
CAT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.57%, CAT belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
CAT's Operating Margin has improved in the last couple of years.
CAT has a better Gross Margin (36.53%) than 67.19% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
The debt/assets ratio for CAT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.13 indicates that CAT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.13, CAT is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
CAT has a debt to FCF ratio of 5.26. This is a neutral value as CAT would need 5.26 years to pay back of 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 46.88% 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 85.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 4.13 |
ROIC/WACC1.76
WACC9.78%
2.3 Liquidity
A Current Ratio of 1.34 indicates that CAT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.34, CAT is doing worse than 81.25% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that CAT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, CAT is doing worse than 75.00% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 3.79% on average over the past years.
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
Based on estimates for the next years, CAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.23% on average per year.
The Revenue is expected to grow by 5.18% on average over the next years.
EPS Next Y-15.69%
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
EPS Next 5Y10.23%
Revenue Next Year-0.8%
Revenue Next 2Y2.69%
Revenue Next 3Y3.5%
Revenue Next 5Y5.18%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CAT is valuated rather expensively with a Price/Earnings ratio of 24.20.
CAT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CAT to the average of the S&P500 Index (27.38), we can say CAT is valued inline with the index average.
The Price/Forward Earnings ratio is 21.62, 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 22.86. CAT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 21.62 |
4.2 Price Multiples
CAT's Enterprise Value to EBITDA is on the same level as the industry average.
CAT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.24 | ||
| EV/EBITDA | 16.44 |
4.3 Compensation for Growth
The excellent profitability rating of CAT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.65
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, CAT has a reasonable but not impressive dividend return.
CAT's Dividend Yield is a higher than the industry average which is at 1.73.
Compared to an average S&P500 Dividend Yield of 2.38, CAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
On average, the dividend of CAT grows each year by 7.41%, which is quite nice.
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)7.41%
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-0.74%
EPS Next 3Y3.63%
466.54
-0.42 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.2%
Inst Owner Change0.23%
Ins Owners0.19%
Ins Owner Change0.07%
Market Cap218.56B
Analysts75
Price Target450.69 (-3.4%)
Short Float %1.4%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)11.42%
PT rev (3m)19.54%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-4.2%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-1.95%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)1.89%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 21.62 | ||
| P/S | 3.46 | ||
| P/FCF | 28.24 | ||
| P/OCF | 19.22 | ||
| P/B | 11.71 | ||
| P/tB | 16.8 | ||
| EV/EBITDA | 16.44 |
EPS(TTM)19.28
EY4.13%
EPS(NY)21.58
Fwd EY4.62%
FCF(TTM)16.52
FCFY3.54%
OCF(TTM)24.28
OCFY5.2%
SpS134.77
BVpS39.83
TBVpS27.77
PEG (NY)N/A
PEG (5Y)1.65
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 | 4.13 |
F-Score5
WACC9.78%
ROIC/WACC1.76
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-15.69%
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
EPS Next 5Y10.23%
Revenue 1Y (TTM)-4.87%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-0.72%
Revenue Next Year-0.8%
Revenue Next 2Y2.69%
Revenue Next 3Y3.5%
Revenue Next 5Y5.18%
EBIT growth 1Y-14.31%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-1.03%
EBIT Next 3Y3.39%
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%