CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
FRA:CAT1 - Deutsche Boerse Ag - US1491231015 - Common Stock - Currency: EUR
Overall CAT1 gets a fundamental rating of 5 out of 10. We evaluated CAT1 against 108 industry peers in the Machinery industry. CAT1 has an excellent profitability rating, but there are some minor concerns on its financial health. CAT1 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CAT1 was profitable.
CAT1 had a positive operating cash flow in the past year.
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
CAT1 has a better Return On Assets (11.70%) than 92.59% of its industry peers.
Looking at the Return On Equity, with a value of 55.01%, CAT1 belongs to the top of the industry, outperforming 98.15% of the companies in the same industry.
CAT1 has a Return On Invested Capital of 19.67%. This is amongst the best in the industry. CAT1 outperforms 92.59% 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 9.09%.
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 has a Profit Margin of 15.71%. This is amongst the best in the industry. CAT1 outperforms 94.44% of its industry peers.
In the last couple of years the Profit Margin of CAT1 has grown nicely.
Looking at the Operating Margin, with a value of 21.83%, CAT1 belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Operating Margin of CAT1 has grown nicely.
Looking at the Gross Margin, with a value of 37.68%, CAT1 is in line with its industry, outperforming 49.07% of the companies in the same industry.
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
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.
CAT1 has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAT1 has a worse debt to assets ratio.
2.2 Solvency
CAT1 has an Altman-Z score of 3.97. This indicates that CAT1 is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.97, CAT1 belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
CAT1 has a debt to FCF ratio of 4.90. This is a neutral value as CAT1 would need 4.90 years to pay back of all of its debts.
CAT1 has a Debt to FCF ratio of 4.90. This is comparable to the rest of the industry: CAT1 outperforms 56.48% 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 worse Debt to Equity ratio (1.62) than 87.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 3.97 |
ROIC/WACC2.02
WACC9.75%
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 63.89% 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.
The Quick ratio of CAT1 (0.77) is worse than 72.22% of its industry peers.
| 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.
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.
The Revenue has decreased by -5.58% in the past year.
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
Based on estimates for the next years, CAT1 will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.22% on average per year.
CAT1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.92% yearly.
EPS Next Y-14.01%
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
EPS Next 5Y8.22%
Revenue Next Year-2.55%
Revenue Next 2Y1.2%
Revenue Next 3Y2.71%
Revenue Next 5Y3.92%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.65, the valuation of CAT1 can be described as rather expensive.
Based on the Price/Earnings ratio, CAT1 is valued a bit cheaper than 62.04% of the companies in the same industry.
CAT1 is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
CAT1 is valuated rather expensively with a Price/Forward Earnings ratio of 17.32.
CAT1's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CAT1 to the average of the S&P500 Index (22.19), we can say CAT1 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 17.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAT1 indicates a slightly more expensive valuation: CAT1 is more expensive than 63.89% of the companies listed in the same industry.
CAT1's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.67 | ||
| EV/EBITDA | 12.65 |
4.3 Compensation for Growth
CAT1 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, CAT1 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.65, CAT1 has a dividend in line with its industry peers.
CAT1's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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
26.88% 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.
DP26.88%
EPS Next 2Y-2.19%
EPS Next 3Y2.72%
FRA:CAT1 (6/16/2025, 7:00:00 PM)
313.5
+2.5 (+0.8%)
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 Cap147.44B
Analysts75
Price Target336.37 (7.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend4.7
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)2.44%
PT rev (3m)-10.48%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-6.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 17.32 | ||
| P/S | 2.7 | ||
| P/FCF | 21.67 | ||
| P/OCF | 15.14 | ||
| P/B | 9.45 | ||
| P/tB | 13.72 | ||
| EV/EBITDA | 12.65 |
EPS(TTM)17.76
EY5.67%
EPS(NY)18.1
Fwd EY5.77%
FCF(TTM)14.47
FCFY4.61%
OCF(TTM)20.71
OCFY6.61%
SpS116.21
BVpS33.19
TBVpS22.85
PEG (NY)N/A
PEG (5Y)1.21
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 | 3.97 |
F-Score5
WACC9.75%
ROIC/WACC2.02
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-2.55%
Revenue Next 2Y1.2%
Revenue Next 3Y2.71%
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%