CATERPILLAR INC (CAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAT - US1491231015 - Common Stock
623.09 USD
+6.99 (+1.13%)
623.5 USD
+0.41 (+0.07%)
We assign a fundamental rating of 5 out of 10 to CAT. CAT was compared to 132 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. While showing a medium growth rate, CAT is valued expensive at the moment. CAT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAT had positive earnings in the past year.
CAT had a positive operating cash flow in the past year.
CAT had positive earnings in each of the past 5 years.
In the past 5 years CAT always reported a positive cash flow from operatings.
1.2 Ratios
CAT has a Return On Assets of 9.89%. This is amongst the best in the industry. CAT outperforms 80.30% of its industry peers.
CAT has a better Return On Equity (44.89%) than 96.97% of its industry peers.
CAT has a Return On Invested Capital of 16.47%. This is amongst the best in the industry. CAT outperforms 92.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAT is significantly above the industry average of 10.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | 44.89% | ||
| ROIC | 16.47% |
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
CAT has a Profit Margin of 14.34%. This is amongst the best in the industry. CAT outperforms 84.85% of its industry peers.
In the last couple of years the Profit Margin of CAT has grown nicely.
CAT has a Operating Margin of 19.93%. This is amongst the best in the industry. CAT outperforms 89.39% of its industry peers.
CAT's Operating Margin has improved in the last couple of years.
CAT has a better Gross Margin (35.53%) than 65.15% of its industry peers.
In the last couple of years the Gross Margin of CAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.93% | ||
| PM (TTM) | 14.34% | ||
| GM | 35.53% |
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.
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.
CAT has a worse debt/assets ratio than last year.
2.2 Solvency
CAT has an Altman-Z score of 4.65. This indicates that CAT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.65, CAT is in the better half of the industry, outperforming 71.97% of the companies in the same industry.
CAT has a debt to FCF ratio of 4.34. This is a neutral value as CAT would need 4.34 years to pay back of all of its debts.
CAT's Debt to FCF ratio of 4.34 is in line compared to the rest of the industry. CAT outperforms 58.33% of its industry peers.
CAT has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
CAT's Debt to Equity ratio of 1.56 is on the low side compared to the rest of the industry. CAT is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.65 |
ROIC/WACC1.74
WACC9.46%
2.3 Liquidity
A Current Ratio of 1.38 indicates that CAT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.38, CAT is doing worse than 78.03% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that CAT may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, CAT is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.32%.
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.
The Revenue has decreased by -1.51% in the past year.
The Revenue has been growing slightly by 3.79% on average over the past years.
EPS 1Y (TTM)-13.32%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-4.26%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%9.51%
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 14.73% yearly.
CAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
EPS Next Y-13.6%
EPS Next 2Y1.27%
EPS Next 3Y6.79%
EPS Next 5Y14.73%
Revenue Next Year2.36%
Revenue Next 2Y5.25%
Revenue Next 3Y6.02%
Revenue Next 5Y4.38%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
CAT is valuated quite expensively with a Price/Earnings ratio of 32.69.
Compared to the rest of the industry, the Price/Earnings ratio of CAT indicates a slightly more expensive valuation: CAT is more expensive than 61.36% of the companies listed in the same industry.
CAT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.17.
A Price/Forward Earnings ratio of 27.74 indicates a quite expensive valuation of CAT.
61.36% 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 (23.79), we can say CAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 27.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAT is valued a bit more expensive than 65.15% of the companies in the same industry.
CAT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.45 | ||
| EV/EBITDA | 21.03 |
4.3 Compensation for Growth
CAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.23
EPS Next 2Y1.27%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
CAT has a Yearly Dividend Yield of 1.05%.
Compared to an average industry Dividend Yield of 0.85, CAT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, CAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of CAT is nicely growing with an annual growth rate of 7.41%!
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)7.41%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CAT pays out 29.36% 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.
DP29.36%
EPS Next 2Y1.27%
EPS Next 3Y6.79%
623.09
+6.99 (+1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.11%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change-2.39%
Market Cap291.59B
Revenue(TTM)64.67B
Net Income(TTM)9.27B
Analysts74.55
Price Target597.49 (-4.11%)
Short Float %1.53%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend5.41
Dividend Growth(5Y)7.41%
DP29.36%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.89%
Min EPS beat(2)-4.57%
Max EPS beat(2)8.35%
EPS beat(4)2
Avg EPS beat(4)0.5%
Min EPS beat(4)-4.57%
Max EPS beat(4)8.35%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)9
Avg EPS beat(12)7.46%
EPS beat(16)13
Avg EPS beat(16)9.09%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)0.9%
Max Revenue beat(2)4.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)4.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)9
Avg Revenue beat(16)0.61%
PT rev (1m)1.31%
PT rev (3m)31.13%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)7.66%
EPS NY rev (1m)0%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 27.74 | ||
| P/S | 4.51 | ||
| P/FCF | 30.45 | ||
| P/OCF | 21.51 | ||
| P/B | 14.12 | ||
| P/tB | 19.38 | ||
| EV/EBITDA | 21.03 |
EPS(TTM)19.06
EY3.06%
EPS(NY)22.46
Fwd EY3.6%
FCF(TTM)20.46
FCFY3.28%
OCF(TTM)28.97
OCFY4.65%
SpS138.19
BVpS44.14
TBVpS32.16
PEG (NY)N/A
PEG (5Y)2.23
Graham Number137.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | 44.89% | ||
| ROCE | 22.33% | ||
| ROIC | 16.47% | ||
| ROICexc | 18.74% | ||
| ROICexgc | 20.88% | ||
| OM | 19.93% | ||
| PM (TTM) | 14.34% | ||
| GM | 35.53% | ||
| FCFM | 14.81% |
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%
ROICexgc growth 3Y20.44%
ROICexgc 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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 179.41% | ||
| Cap/Sales | 6.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.72% | ||
| Profit Quality | 103.26% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 4.65 |
F-Score5
WACC9.46%
ROIC/WACC1.74
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)-13.32%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-4.26%
EPS Next Y-13.6%
EPS Next 2Y1.27%
EPS Next 3Y6.79%
EPS Next 5Y14.73%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%9.51%
Revenue Next Year2.36%
Revenue Next 2Y5.25%
Revenue Next 3Y6.02%
Revenue Next 5Y4.38%
EBIT growth 1Y-13.68%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-1.19%
EBIT Next 3Y9.09%
EBIT Next 5Y15.12%
FCF growth 1Y10.37%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y16.65%
OCF growth 3Y18.69%
OCF growth 5Y11.73%
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 2 / 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 9 / 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 32.69 and the Price/Book (PB) ratio is 14.12.
Can you provide the expected EPS growth for CAT stock?
The Earnings per Share (EPS) of CATERPILLAR INC (CAT) is expected to decline by -13.6% in the next year.