Caterpillar
Market Cap
US$125.8b
Last Updated
2021/04/11 22:14 UTC
Data Sources
Company Financials +
Executive Summary
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
Similar Companies
Share Price & News
How has Caterpillar's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CAT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: CAT's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-0.9%
CAT
0.5%
US Machinery
2.1%
US Market
1 Year Return
84.6%
CAT
79.1%
US Machinery
56.3%
US Market
Return vs Industry: CAT exceeded the US Machinery industry which returned 79.1% over the past year.
Return vs Market: CAT exceeded the US Market which returned 56.3% over the past year.
Shareholder returns
| CAT | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.9% | 0.5% | 2.1% |
| 30 Day | 0.8% | 1.9% | 2.4% |
| 90 Day | 19.0% | 11.3% | 6.1% |
| 1 Year | 89.8%84.6% | 83.5%79.1% | 59.1%56.3% |
| 3 Year | 66.5%53.6% | 61.1%49.7% | 65.7%55.1% |
| 5 Year | 236.2%191.5% | 155.3%129.2% | 122.3%97.6% |
Long-Term Price Volatility Vs. Market
How volatile is Caterpillar's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Caterpillar Inc. (NYSE:CAT) Delivered A Better ROE Than Its Industry2 weeks ago | Simply Wall St
Shareholders Of Caterpillar (NYSE:CAT) Must Be Happy With Their 245% Total Return3 weeks ago | Simply Wall St
Caterpillar (NYSE:CAT) Has A Somewhat Strained Balance SheetValuation
Is Caterpillar undervalued compared to its fair value and its price relative to the market?
41.88x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CAT ($230.75) is trading above our estimate of fair value ($155.59)
Significantly Below Fair Value: CAT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CAT is poor value based on its PE Ratio (41.9x) compared to the US Machinery industry average (36.1x).
PE vs Market: CAT is poor value based on its PE Ratio (41.9x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: CAT is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: CAT is overvalued based on its PB Ratio (8.2x) compared to the US Machinery industry average (3.3x).
Future Growth
How is Caterpillar forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
18.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAT's forecast earnings growth (18.4% per year) is above the savings rate (2%).
Earnings vs Market: CAT's earnings (18.4% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: CAT's earnings are forecast to grow, but not significantly.
Revenue vs Market: CAT's revenue (9.3% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: CAT's revenue (9.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CAT's Return on Equity is forecast to be very high in 3 years time (53.7%).
Past Performance
How has Caterpillar performed over the past 5 years?
33.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAT has high quality earnings.
Growing Profit Margin: CAT's current net profit margins (7.2%) are lower than last year (11.3%).
Past Earnings Growth Analysis
Earnings Trend: CAT's earnings have grown significantly by 33.2% per year over the past 5 years.
Accelerating Growth: CAT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CAT had negative earnings growth (-50.7%) over the past year, making it difficult to compare to the Machinery industry average (-13.3%).
Return on Equity
High ROE: CAT's Return on Equity (19.5%) is considered low.
Financial Health
How is Caterpillar's financial position?
Financial Position Analysis
Short Term Liabilities: CAT's short term assets ($39.5B) exceed its short term liabilities ($25.7B).
Long Term Liabilities: CAT's short term assets ($39.5B) exceed its long term liabilities ($37.2B).
Debt to Equity History and Analysis
Debt Level: CAT's debt to equity ratio (241%) is considered high.
Reducing Debt: CAT's debt to equity ratio has reduced from 254.6% to 241% over the past 5 years.
Debt Coverage: CAT's debt is not well covered by operating cash flow (17.1%).
Interest Coverage: CAT's interest payments on its debt are well covered by EBIT (12.3x coverage).
Balance Sheet
Dividend
What is Caterpillar current dividend yield, its reliability and sustainability?
1.79%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CAT's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: CAT's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: CAT's dividends per share have been stable in the past 10 years.
Growing Dividend: CAT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (74.8%), CAT's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CAT's dividends in 3 years are forecast to be well covered by earnings (38.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Jim Umpleby (62 yo)
4.25yrs
Tenure
US$34,519,129
Compensation
Mr. D. James Umpleby, III, also known as Jim, has been the Chief Executive Officer and Chairman of the Board of Caterpillar Inc. since January 1, 2017 and December 12, 2018 respectively. Mr. Umpleby has be...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD34.52M) is above average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: CAT's management team is considered experienced (3.2 years average tenure).
Board Members
Experienced Board: CAT's board of directors are considered experienced (8.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CAT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Caterpillar Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Caterpillar Inc.
- Ticker: CAT
- Exchange: NYSE
- Founded: 1925
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Market Cap: US$125.829b
- Shares outstanding: 545.30m
- Website: https://www.caterpillar.com
Number of Employees
Location
- Caterpillar Inc.
- 510 Lake Cook Road
- Suite 100
- Deerfield
- Illinois
- 60015
- United States
Listings
Biography
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Its Construction Industries se...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/11 22:14 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.