CATERPILLAR INC (CAT1.DE) Stock Fundamental Analysis
Europe - FRA:CAT1 - US1491231015 - Common Stock
397 EUR
-6 (-1.49%)
We assign a fundamental rating of 5 out of 10 to CAT1. CAT1 was compared to 102 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 is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years CAT1 always reported a positive cash flow from operatings.
1.2 Ratios
CAT1 has a better Return On Assets (10.45%) than 90.20% of its industry peers.
With an excellent Return On Equity value of 50.57%, CAT1 belongs to the best of the industry, outperforming 99.02% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.25%, CAT1 belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
CAT1 had an Average Return On Invested Capital over the past 3 years of 17.90%. This is significantly above the industry average of 9.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 50.57% | ||
| ROIC | 17.25% |
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 better Profit Margin (14.95%) than 93.14% of its industry peers.
CAT1's Profit Margin has improved in the last couple of years.
CAT1's Operating Margin of 20.57% is amongst the best of the industry. CAT1 outperforms 92.16% of its industry peers.
In the last couple of years the Operating Margin of CAT1 has grown nicely.
With a Gross Margin value of 36.53%, CAT1 perfoms like the industry average, outperforming 44.12% 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 | 20.57% | ||
| PM (TTM) | 14.95% | ||
| GM | 36.53% |
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
CAT1 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, CAT1 has less shares outstanding
The number of shares outstanding for CAT1 has been reduced compared to 5 years ago.
Compared to 1 year ago, CAT1 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.12 indicates that CAT1 is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.12, CAT1 belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
The Debt to FCF ratio of CAT1 is 5.26, which is a neutral value as it means it would take CAT1, 5.26 years of fcf income to pay off all of its debts.
CAT1 has a Debt to FCF ratio (5.26) which is in line with its industry peers.
CAT1 has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CAT1 (1.74) is worse than 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 4.12 |
ROIC/WACC1.79
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.34 indicates that CAT1 should not have too much problems paying its short term obligations.
CAT1 has a Current ratio (1.34) which is in line with its industry peers.
CAT1 has a Quick Ratio of 1.34. 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 Quick ratio of 0.81. This is in the lower half of the industry: CAT1 underperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for CAT1 have decreased strongly by -13.70% in the last year.
The Earnings Per Share has been growing by 14.64% on average over the past years. This is quite good.
Looking at the last year, CAT1 shows a decrease in Revenue. The Revenue has decreased by -4.87% in the last year.
The Revenue has been growing slightly by 3.79% on average over the past years.
EPS 1Y (TTM)-13.7%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-21.2%
Revenue 1Y (TTM)-4.87%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-0.72%
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 10.23% on average per year.
The Revenue is expected to grow by 5.18% on average over the next years.
EPS Next Y-15.69%
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
EPS Next 5Y10.23%
Revenue Next Year-0.8%
Revenue Next 2Y2.69%
Revenue Next 3Y3.5%
Revenue Next 5Y5.18%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
With a Price/Earnings ratio of 24.18, CAT1 is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as CAT1.
The average S&P500 Price/Earnings ratio is at 27.32. CAT1 is around the same levels.
A Price/Forward Earnings ratio of 21.60 indicates a rather expensive valuation of CAT1.
Based on the Price/Forward Earnings ratio, CAT1 is valued a bit more expensive than 64.71% of the companies in the same industry.
CAT1's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 21.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAT1 is valued a bit more expensive than 68.63% of the companies 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 | 28.21 | ||
| EV/EBITDA | 16.42 |
4.3 Compensation for Growth
CAT1 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.65
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
5. Dividend
5.1 Amount
CAT1 has a Yearly Dividend Yield of 1.29%.
Compared to an average industry Dividend Yield of 2.55, CAT1 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, CAT1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
On average, the dividend of CAT1 grows each year by 7.41%, which is quite nice.
Dividend Growth(5Y)7.41%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
28.60% of the earnings are spent on dividend by CAT1. This is a low number and sustainable payout ratio.
The dividend of CAT1 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.6%
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
FRA:CAT1 (9/25/2025, 7:00:00 PM)
397
-6 (-1.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.2%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap185.99B
Analysts75
Price Target383.95 (-3.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend4.61
Dividend Growth(5Y)7.41%
DP28.6%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.88%
Min EPS beat(2)-4.57%
Max EPS beat(2)-3.19%
EPS beat(4)1
Avg EPS beat(4)-2.61%
Min EPS beat(4)-4.57%
Max EPS beat(4)1.39%
EPS beat(8)5
Avg EPS beat(8)3.44%
EPS beat(12)9
Avg EPS beat(12)8.74%
EPS beat(16)13
Avg EPS beat(16)9.79%
Revenue beat(2)1
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)0.9%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)0.9%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)6
Avg Revenue beat(12)0.25%
Revenue beat(16)8
Avg Revenue beat(16)0.25%
PT rev (1m)9.63%
PT rev (3m)16.62%
EPS NQ rev (1m)-2.21%
EPS NQ rev (3m)-4.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 21.6 | ||
| P/S | 3.46 | ||
| P/FCF | 28.21 | ||
| P/OCF | 19.2 | ||
| P/B | 11.7 | ||
| P/tB | 16.78 | ||
| EV/EBITDA | 16.42 |
EPS(TTM)16.42
EY4.14%
EPS(NY)18.38
Fwd EY4.63%
FCF(TTM)14.07
FCFY3.55%
OCF(TTM)20.68
OCFY5.21%
SpS114.81
BVpS33.93
TBVpS23.65
PEG (NY)N/A
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 50.57% | ||
| ROCE | 23.44% | ||
| ROIC | 17.25% | ||
| ROICexc | 18.97% | ||
| ROICexgc | 21.17% | ||
| OM | 20.57% | ||
| PM (TTM) | 14.95% | ||
| GM | 36.53% | ||
| FCFM | 12.26% |
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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 165.74% | ||
| Cap/Sales | 5.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.93% | ||
| Profit Quality | 82.02% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 4.12 |
F-Score5
WACC9.63%
ROIC/WACC1.79
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)-13.7%
EPS 3Y26.49%
EPS 5Y14.64%
EPS Q2Q%-21.2%
EPS Next Y-15.69%
EPS Next 2Y-0.74%
EPS Next 3Y3.63%
EPS Next 5Y10.23%
Revenue 1Y (TTM)-4.87%
Revenue growth 3Y8.34%
Revenue growth 5Y3.79%
Sales Q2Q%-0.72%
Revenue Next Year-0.8%
Revenue Next 2Y2.69%
Revenue Next 3Y3.5%
Revenue Next 5Y5.18%
EBIT growth 1Y-14.31%
EBIT growth 3Y25.63%
EBIT growth 5Y9.59%
EBIT Next Year-1.03%
EBIT Next 3Y3.39%
EBIT Next 5Y10.41%
FCF growth 1Y6.61%
FCF growth 3Y23.12%
FCF growth 5Y15.76%
OCF growth 1Y13.25%
OCF growth 3Y18.69%
OCF growth 5Y11.73%