CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
FRA:CAT1 - Deutsche Boerse Ag - US1491231015 - Common Stock - Currency: EUR
CAT1 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 107 industry peers in the Machinery industry. While CAT1 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CAT1 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
CAT1 had positive earnings in the past year.
In the past year CAT1 had a positive cash flow from operations.
CAT1 had positive earnings in each of the past 5 years.
In the past 5 years CAT1 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.70%, CAT1 belongs to the top of the industry, outperforming 91.59% of the companies in the same industry.
CAT1 has a better Return On Equity (55.01%) than 97.20% of its industry peers.
CAT1 has a Return On Invested Capital of 19.67%. This is amongst the best in the industry. CAT1 outperforms 91.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAT1 is significantly above the industry average of 8.98%.
The last Return On Invested Capital (19.67%) for CAT1 is above the 3 year average (17.90%), which is a sign of increasing profitability.
| 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
CAT1's Profit Margin of 15.71% is amongst the best of the industry. CAT1 outperforms 92.52% of its industry peers.
CAT1's Profit Margin has improved in the last couple of years.
CAT1 has a Operating Margin of 21.83%. This is amongst the best in the industry. CAT1 outperforms 93.46% of its industry peers.
In the last couple of years the Operating Margin of CAT1 has grown nicely.
With a Gross Margin value of 37.68%, CAT1 perfoms like the industry average, outperforming 50.47% of the companies in the same industry.
In the last couple of years the Gross Margin of CAT1 has grown nicely.
| 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.
CAT1 has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CAT1 has less shares outstanding
The debt/assets ratio for CAT1 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.19 indicates that CAT1 is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.19, CAT1 belongs to the best of the industry, outperforming 85.98% of the companies in the same industry.
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.
CAT1's Debt to FCF ratio of 4.90 is in line compared to the rest of the industry. CAT1 outperforms 57.94% of its industry peers.
A Debt/Equity ratio of 1.62 is on the high side and indicates that CAT1 has dependencies on debt financing.
CAT1 has a Debt to Equity ratio of 1.62. This is amonst the worse of the industry: CAT1 underperforms 88.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 4.19 |
ROIC/WACC2.07
WACC9.51%
2.3 Liquidity
CAT1 has a Current Ratio of 1.32. This is a normal value and indicates that CAT1 is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.32, CAT1 is not doing good in the industry: 64.49% of the companies in the same industry are doing better.
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 71.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
CAT1 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.16%.
CAT1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.64% yearly.
Looking at the last year, CAT1 shows a decrease in Revenue. The Revenue has decreased by -5.58% in the last year.
Measured over the past years, CAT1 shows a small growth in Revenue. The Revenue has been growing by 3.79% on average per year.
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
The Earnings Per Share is expected to grow by 8.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y-14.08%
EPS Next 2Y-1.67%
EPS Next 3Y3.07%
EPS Next 5Y8.22%
Revenue Next Year-2.98%
Revenue Next 2Y1.02%
Revenue Next 3Y2.57%
Revenue Next 5Y3.92%
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.
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
Based on the Price/Earnings ratio of 20.16, the valuation of CAT1 can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as CAT1.
CAT1's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.46.
A Price/Forward Earnings ratio of 19.56 indicates a rather expensive valuation of CAT1.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAT1 is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of CAT1 to the average of the S&P500 Index (36.44), we can say CAT1 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAT1 is valued a bit more expensive than the industry average as 66.36% of the companies are valued more cheaply.
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 | 24.74 | ||
| EV/EBITDA | 14.17 |
4.3 Compensation for Growth
CAT1 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y-1.67%
EPS Next 3Y3.07%
5. Dividend
5.1 Amount
CAT1 has a Yearly Dividend Yield of 1.44%.
Compared to an average industry Dividend Yield of 2.84, CAT1 has a dividend in line with its industry peers.
CAT1's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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-1.67%
EPS Next 3Y3.07%
FRA:CAT1 (7/21/2025, 7:00:00 PM)
355
-2 (-0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.13%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap166.96B
Analysts75
Price Target340.96 (-3.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend4.65
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)1.37%
PT rev (3m)-5.08%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-5.14%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 19.56 | ||
| P/S | 3.08 | ||
| P/FCF | 24.74 | ||
| P/OCF | 17.28 | ||
| P/B | 10.78 | ||
| P/tB | 15.66 | ||
| EV/EBITDA | 14.17 |
EPS(TTM)17.61
EY4.96%
EPS(NY)18.15
Fwd EY5.11%
FCF(TTM)14.35
FCFY4.04%
OCF(TTM)20.54
OCFY5.79%
SpS115.29
BVpS32.93
TBVpS22.66
PEG (NY)N/A
PEG (5Y)1.38
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 | 4.19 |
F-Score5
WACC9.51%
ROIC/WACC2.07
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-14.08%
EPS Next 2Y-1.67%
EPS Next 3Y3.07%
EPS Next 5Y8.22%
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-9.81%
Revenue Next Year-2.98%
Revenue Next 2Y1.02%
Revenue Next 3Y2.57%
Revenue Next 5Y3.92%
EBIT growth 1Y-8.1%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-1.31%
EBIT Next 3Y3.26%
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%