CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
FRA:CAT1 - Deutsche Boerse Ag - US1491231015 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to CAT1. CAT1 was compared to 109 industry peers in the Machinery industry. CAT1 has an excellent profitability rating, but there are some minor concerns on its financial health. CAT1 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CAT1 was profitable.
CAT1 had a positive operating cash flow in the past year.
CAT1 had positive earnings in each of the past 5 years.
Each year in the past 5 years CAT1 had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.70%, CAT1 belongs to the best of the industry, outperforming 92.66% of the companies in the same industry.
The Return On Equity of CAT1 (55.01%) is better than 98.17% of its industry peers.
CAT1 has a Return On Invested Capital of 19.67%. This is amongst the best in the industry. CAT1 outperforms 93.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAT1 is significantly above the industry average of 8.80%.
The 3 year average ROIC (17.90%) for CAT1 is below the current ROIC(19.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.7% | ||
| ROE | 55.01% | ||
| ROIC | 19.67% |
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 CAT1 (15.71%) is better than 94.50% of its industry peers.
In the last couple of years the Profit Margin of CAT1 has grown nicely.
The Operating Margin of CAT1 (21.83%) is better than 95.41% of its industry peers.
In the last couple of years the Operating Margin of CAT1 has grown nicely.
CAT1's Gross Margin of 37.68% is in line compared to the rest of the industry. CAT1 outperforms 51.38% of its industry peers.
CAT1's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.83% | ||
| PM (TTM) | 15.71% | ||
| GM | 37.68% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CAT1 is creating value.
The number of shares outstanding for CAT1 has been reduced compared to 1 year ago.
The number of shares outstanding for CAT1 has been reduced compared to 5 years ago.
CAT1 has a worse debt/assets ratio than last year.
2.2 Solvency
CAT1 has an Altman-Z score of 3.92. This indicates that CAT1 is financially healthy and has little risk of bankruptcy at the moment.
CAT1's Altman-Z score of 3.92 is amongst the best of the industry. CAT1 outperforms 83.49% of its industry peers.
The Debt to FCF ratio of CAT1 is 4.90, which is a neutral value as it means it would take CAT1, 4.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.90, CAT1 is in line with its industry, outperforming 55.05% of the companies in the same industry.
CAT1 has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
CAT1 has a Debt to Equity ratio of 1.62. This is amonst the worse of the industry: CAT1 underperforms 86.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 3.92 |
ROIC/WACC2.03
WACC9.71%
2.3 Liquidity
A Current Ratio of 1.32 indicates that CAT1 should not have too much problems paying its short term obligations.
CAT1's Current ratio of 1.32 is on the low side compared to the rest of the industry. CAT1 is outperformed by 61.47% of its industry peers.
CAT1 has a Quick Ratio of 1.32. This is a bad value and indicates that CAT1 is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.77, CAT1 is doing worse than 70.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for CAT1 have decreased by -6.16% in the last year.
The Earnings Per Share has been growing by 14.64% on average over the past years. This is quite good.
CAT1 shows a decrease in Revenue. In the last year, the revenue decreased by -5.58%.
CAT1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
EPS 1Y (TTM)-6.16%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-24.11%
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-9.81%
3.2 Future
CAT1 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.22% yearly.
Based on estimates for the next years, CAT1 will show a quite strong growth in Revenue. The Revenue will grow by 9.61% on average per year.
EPS Next Y-14.01%
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
EPS Next 5Y8.22%
Revenue Next Year-2.48%
Revenue Next 2Y1.17%
Revenue Next 3Y2.67%
Revenue Next 5Y9.61%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.62 indicates a correct valuation of CAT1.
CAT1's Price/Earnings ratio is a bit cheaper when compared to the industry. CAT1 is cheaper than 60.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. CAT1 is valued slightly cheaper when compared to this.
CAT1 is valuated correctly with a Price/Forward Earnings ratio of 16.30.
The rest of the industry has a similar Price/Forward Earnings ratio as CAT1.
CAT1's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
CAT1's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CAT1 is more expensive than 64.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAT1 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.73 | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
The excellent profitability rating of CAT1 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
5. Dividend
5.1 Amount
CAT1 has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
CAT1's Dividend Yield is comparable with the industry average which is at 3.09.
CAT1's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of CAT1 is nicely growing with an annual growth rate of 7.41%!
Dividend Growth(5Y)7.41%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
CAT1 pays out 26.88% of its income as dividend. This is a sustainable payout ratio.
The dividend of CAT1 is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP26.88%
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
FRA:CAT1 (5/23/2025, 7:00:00 PM)
302
-3 (-0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap144.33B
Analysts69.38
Price Target328.34 (8.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend4.84
Dividend Growth(5Y)7.41%
DP26.88%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.9%
Min EPS beat(2)-3.19%
Max EPS beat(2)1.39%
EPS beat(4)2
Avg EPS beat(4)0.3%
Min EPS beat(4)-4.08%
Max EPS beat(4)7.07%
EPS beat(8)6
Avg EPS beat(8)6.5%
EPS beat(12)10
Avg EPS beat(12)9.51%
EPS beat(16)14
Avg EPS beat(16)10.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.9%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-2.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.86%
Revenue beat(8)2
Avg Revenue beat(8)-0.87%
Revenue beat(12)5
Avg Revenue beat(12)0.03%
Revenue beat(16)8
Avg Revenue beat(16)0.28%
PT rev (1m)-8.59%
PT rev (3m)-12.27%
EPS NQ rev (1m)-4.59%
EPS NQ rev (3m)-6.23%
EPS NY rev (1m)-4.01%
EPS NY rev (3m)-6.73%
Revenue NQ rev (1m)2.09%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 16.3 | ||
| P/S | 2.58 | ||
| P/FCF | 20.73 | ||
| P/OCF | 14.48 | ||
| P/B | 9.03 | ||
| P/tB | 13.13 | ||
| EV/EBITDA | 12.29 |
EPS(TTM)18.17
EY6.02%
EPS(NY)18.53
Fwd EY6.13%
FCF(TTM)14.57
FCFY4.82%
OCF(TTM)20.86
OCFY6.91%
SpS117.04
BVpS33.43
TBVpS23.01
PEG (NY)N/A
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.7% | ||
| ROE | 55.01% | ||
| ROCE | 26.37% | ||
| ROIC | 19.67% | ||
| ROICexc | 21.01% | ||
| ROICexgc | 23.55% | ||
| OM | 21.83% | ||
| PM (TTM) | 15.71% | ||
| GM | 37.68% | ||
| FCFM | 12.45% |
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 Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 156.62% | ||
| Cap/Sales | 5.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.54% | ||
| Profit Quality | 79.23% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.92 |
F-Score5
WACC9.71%
ROIC/WACC2.03
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)-6.16%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-24.11%
EPS Next Y-14.01%
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
EPS Next 5Y8.22%
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-9.81%
Revenue Next Year-2.48%
Revenue Next 2Y1.17%
Revenue Next 3Y2.67%
Revenue Next 5Y9.61%
EBIT growth 1Y-8.1%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year3.68%
EBIT Next 3Y4.38%
EBIT Next 5Y8.31%
FCF growth 1Y23.9%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y24.88%
OCF growth 3Y18.69%
OCF growth 5Y11.73%