CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
FRA:CAT1 - Deutsche Boerse Ag - US1491231015 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to CAT1. CAT1 was compared to 106 industry peers in the Machinery industry. CAT1 scores excellent on profitability, 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.
In the past year CAT1 had a positive cash flow from operations.
In the past 5 years CAT1 has always been profitable.
Each year in the past 5 years CAT1 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CAT1 (12.30%) is better than 93.40% of its industry peers.
CAT1's Return On Equity of 55.37% is amongst the best of the industry. CAT1 outperforms 97.17% of its industry peers.
CAT1 has a better Return On Invested Capital (19.54%) than 93.40% of its industry peers.
CAT1 had an Average Return On Invested Capital over the past 3 years of 17.74%. This is significantly above the industry average of 8.60%.
The last Return On Invested Capital (19.54%) for CAT1 is above the 3 year average (17.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 55.37% | ||
| ROIC | 19.54% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.74%
ROIC(5y)14.27%
1.3 Margins
The Profit Margin of CAT1 (16.65%) is better than 95.28% of its industry peers.
CAT1's Profit Margin has improved in the last couple of years.
CAT1 has a Operating Margin of 22.71%. This is amongst the best in the industry. CAT1 outperforms 95.28% of its industry peers.
CAT1's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 38.16%, CAT1 perfoms like the industry average, outperforming 52.83% of the companies in the same industry.
CAT1's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.71% | ||
| PM (TTM) | 16.65% | ||
| GM | 38.16% |
OM growth 3Y15.01%
OM growth 5Y5.07%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.65%
GM growth 5Y3.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CAT1 is creating value.
The number of shares outstanding for CAT1 has been reduced compared to 1 year ago.
Compared to 5 years ago, CAT1 has less shares outstanding
Compared to 1 year ago, CAT1 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.70 indicates that CAT1 is not in any danger for bankruptcy at the moment.
CAT1's Altman-Z score of 3.70 is amongst the best of the industry. CAT1 outperforms 83.96% of its industry peers.
The Debt to FCF ratio of CAT1 is 4.35, which is a neutral value as it means it would take CAT1, 4.35 years of fcf income to pay off all of its debts.
CAT1 has a Debt to FCF ratio (4.35) which is comparable to the rest of the industry.
CAT1 has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CAT1 (1.63) is worse than 83.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 3.7 |
ROIC/WACC2.03
WACC9.64%
2.3 Liquidity
CAT1 has a Current Ratio of 1.42. This is a normal value and indicates that CAT1 is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.42, CAT1 is in line with its industry, outperforming 40.57% of the companies in the same industry.
CAT1 has a Quick Ratio of 1.42. This is a bad value and indicates that CAT1 is not financially healthy enough and could expect problems in meeting its short term obligations.
CAT1 has a worse Quick ratio (0.89) than 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
CAT1 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.25%.
Measured over the past years, CAT1 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.64% on average per year.
CAT1 shows a decrease in Revenue. In the last year, the revenue decreased by -3.36%.
CAT1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
EPS 1Y (TTM)3.25%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-1.72%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-5.01%
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.
CAT1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.61% yearly.
EPS Next Y-10.42%
EPS Next 2Y-0.25%
EPS Next 3Y3.88%
EPS Next 5Y8.22%
Revenue Next Year-3.77%
Revenue Next 2Y0.24%
Revenue Next 3Y2.11%
Revenue Next 5Y9.61%
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 decreasing.
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
CAT1 is valuated correctly with a Price/Earnings ratio of 13.94.
66.98% of the companies in the same industry are more expensive than CAT1, based on the Price/Earnings ratio.
CAT1 is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.57, CAT1 is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAT1 is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.20. CAT1 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAT1 is on the same level as its industry peers.
CAT1's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.55 | ||
| EV/EBITDA | 10.26 |
4.3 Compensation for Growth
CAT1 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y-0.25%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, CAT1 has a reasonable but not impressive dividend return.
The stock price of CAT1 dropped by -25.62% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.07, CAT1 pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.45, CAT1 is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of CAT1 is nicely growing with an annual growth rate of 7.30%!
Dividend Growth(5Y)7.3%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
24.52% of the earnings are spent on dividend by CAT1. This is a low number and 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.
DP24.52%
EPS Next 2Y-0.25%
EPS Next 3Y3.88%
FRA:CAT1 (4/30/2025, 7:00:00 PM)
268.5
+1 (+0.37%)
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 Cap128.32B
Analysts69.68
Price Target310.68 (15.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend4.74
Dividend Growth(5Y)7.3%
DP24.52%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.35%
Min EPS beat(2)-4.08%
Max EPS beat(2)1.39%
EPS beat(4)3
Avg EPS beat(4)3.08%
Min EPS beat(4)-4.08%
Max EPS beat(4)7.96%
EPS beat(8)7
Avg EPS beat(8)10.48%
EPS beat(12)11
Avg EPS beat(12)10.58%
EPS beat(16)15
Avg EPS beat(16)13.65%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)-0.86%
Revenue beat(8)3
Avg Revenue beat(8)-0.02%
Revenue beat(12)6
Avg Revenue beat(12)0.38%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)-17.32%
PT rev (3m)-16.75%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-15.57%
EPS NY rev (1m)-3.13%
EPS NY rev (3m)-12.2%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-5.97%
Revenue NY rev (1m)-2.05%
Revenue NY rev (3m)-4.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 15.57 | ||
| P/S | 2.25 | ||
| P/FCF | 16.55 | ||
| P/OCF | 12.13 | ||
| P/B | 7.49 | ||
| P/tB | 10.54 | ||
| EV/EBITDA | 10.26 |
EPS(TTM)19.26
EY7.17%
EPS(NY)17.25
Fwd EY6.42%
FCF(TTM)16.23
FCFY6.04%
OCF(TTM)22.14
OCFY8.25%
SpS119.23
BVpS35.86
TBVpS25.48
PEG (NY)N/A
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 55.37% | ||
| ROCE | 26.52% | ||
| ROIC | 19.54% | ||
| ROICexc | 22.08% | ||
| ROICexgc | 24.71% | ||
| OM | 22.71% | ||
| PM (TTM) | 16.65% | ||
| GM | 38.16% | ||
| FCFM | 13.61% |
ROA(3y)10.76%
ROA(5y)8.79%
ROE(3y)50.21%
ROE(5y)41.91%
ROIC(3y)17.74%
ROIC(5y)14.27%
ROICexc(3y)20.15%
ROICexc(5y)16.43%
ROICexgc(3y)22.76%
ROICexgc(5y)18.81%
ROCE(3y)24.37%
ROCE(5y)19.52%
ROICexcg growth 3Y19.45%
ROICexcg growth 5Y5.93%
ROICexc growth 3Y21.46%
ROICexc growth 5Y7.23%
OM growth 3Y15.01%
OM growth 5Y5.07%
PM growth 3Y9.36%
PM growth 5Y8.01%
GM growth 3Y7.65%
GM growth 5Y3.39%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 149.33% | ||
| Cap/Sales | 4.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.34% | ||
| Profit Quality | 81.73% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 3.7 |
F-Score7
WACC9.64%
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)3.25%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-1.72%
EPS Next Y-10.42%
EPS Next 2Y-0.25%
EPS Next 3Y3.88%
EPS Next 5Y8.22%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-5.01%
Revenue Next Year-3.77%
Revenue Next 2Y0.24%
Revenue Next 3Y2.11%
Revenue Next 5Y9.61%
EBIT growth 1Y-0.4%
EBIT growth 3Y24.6%
EBIT growth 5Y9.05%
EBIT Next Year3.68%
EBIT Next 3Y4.38%
EBIT Next 5Y8.31%
FCF growth 1Y-9.94%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y-6.6%
OCF growth 3Y18.69%
OCF growth 5Y11.73%