Caterpillar
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Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The last earnings update was 67 days ago. More info.
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CAT Share Price and Events
7 Day Returns
1 Year Returns
CAT Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Caterpillar (CAT) | 1.5% | 9.7% | 7.7% | -7.5% | 85.4% | 36.6% |
| US Machinery | 1.4% | 9.3% | 11.6% | 1.8% | 51.4% | 34% |
| US Market | -0.8% | 2.7% | 7.5% | 7% | 37.9% | 47% |
1 Year Return vs Industry and Market
- CAT underperformed the Machinery industry which returned 1.8% over the past year.
- CAT underperformed the Market in United States of America which returned 7% over the past year.
Value
Is Caterpillar undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Caterpillar
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Caterpillar.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 20 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Machinery Unlevered Beta | Simply Wall St/ S&P Global | 1.07 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.068 (1 + (1- 21%) (44.66%)) |
1.298 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.3 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.298 * 5.96%) |
10.47% |
Discounted Cash Flow Calculation for NYSE:CAT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Caterpillar is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 10.47%) |
|
|---|---|---|---|
| 2019 | 7,784.74 | Analyst x7 | 7,047.17 |
| 2020 | 7,658.57 | Analyst x9 | 6,276.07 |
| 2021 | 9,157.20 | Analyst x5 | 6,793.18 |
| 2022 | 10,375.49 | Est @ 13.3% | 6,967.70 |
| 2023 | 11,426.73 | Est @ 10.13% | 6,946.61 |
| 2024 | 12,330.74 | Est @ 7.91% | 6,785.94 |
| 2025 | 13,114.59 | Est @ 6.36% | 6,533.51 |
| 2026 | 13,805.58 | Est @ 5.27% | 6,226.11 |
| 2027 | 14,427.83 | Est @ 4.51% | 5,890.24 |
| 2028 | 15,001.20 | Est @ 3.97% | 5,544.06 |
| Present value of next 10 years cash flows | $65,010.60 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $15,001.20 × (1 + 2.73%) ÷ (10.47% – 2.73%) |
$199,200.45 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $199,200.45 ÷ (1 + 10.47%)10 |
$73,619.44 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $65,010.60 + $73,619.44 |
$138,630.03 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $138,630.03 / 575.54 |
$240.87 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $240.87 |
| Current discount | Discount to share price of
$142.38
= -1 x ($142.38 - $240.87) / $240.87 |
40.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Caterpillar's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Caterpillar's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Caterpillar's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Caterpillar's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $10.39 |
| NYSE:CAT Share Price ** | NYSE (2019-04-22) in USD | $142.38 |
| United States of America Machinery Industry PE Ratio | Median Figure of 103 Publicly-Listed Machinery Companies | 21.67x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 18.21x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Caterpillar.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:CAT Share Price ÷ EPS (both in USD) = 142.38 ÷ 10.39 |
13.7x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Caterpillar is good value based on earnings compared to the US Machinery industry average.
- Caterpillar is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Caterpillar's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 13.7x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts |
5.7%per year |
| United States of America Machinery Industry PEG Ratio | Median Figure of 83 Publicly-Listed Machinery Companies | 1.61x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 13.7x ÷ 5.7% |
2.39x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Caterpillar is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Caterpillar's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $24.39 |
| NYSE:CAT Share Price * | NYSE (2019-04-22) in USD | $142.38 |
| United States of America Machinery Industry PB Ratio | Median Figure of 129 Publicly-Listed Machinery Companies | 2.45x |
| United States of America Market PB Ratio | Median Figure of 5,186 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:CAT Share Price ÷ Book Value per Share (both in USD) = 142.38 ÷ 24.39 |
5.84x |
* Primary Listing of Caterpillar.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Caterpillar is overvalued based on assets compared to the US Machinery industry average.
Value checks
We assess Caterpillar's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check) Caterpillar has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Caterpillar expected to perform in the next 1 to 3 years based on estimates from 20 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Caterpillar's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Caterpillar's earnings growth is positive but not above the United States of America market average.
- Caterpillar's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:CAT Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts | 5.7% |
| NYSE:CAT Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts | 2.3% |
| United States of America Machinery Industry Earnings Growth Rate | Market Cap Weighted Average | 11% |
| United States of America Machinery Industry Revenue Growth Rate | Market Cap Weighted Average | 3.7% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.5% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 57,996 | 10,703 | 7,058 | 9 |
| 2020-12-31 | 58,249 | 9,378 | 7,316 | 20 |
| 2019-12-31 | 56,702 | 8,917 | 6,996 | 19 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 54,722 | 6,558 | 6,147 |
| 2018-09-30 | 53,276 | 5,012 | 3,800 |
| 2018-06-30 | 51,179 | 4,861 | 3,132 |
| 2018-03-31 | 48,499 | 5,095 | 2,227 |
| 2017-12-31 | 45,462 | 5,706 | 754 |
| 2017-09-30 | 42,140 | 6,826 | 882 |
| 2017-06-30 | 39,887 | 6,756 | 106 |
| 2017-03-31 | 38,898 | 6,688 | -146 |
| 2016-12-31 | 38,537 | 5,639 | -67 |
| 2016-09-30 | 39,993 | 5,786 | 1,010 |
| 2016-06-30 | 41,795 | 6,121 | 1,286 |
| 2016-03-31 | 43,770 | 5,895 | 1,538 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
All data from Caterpillar Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 12.81 | 13.74 | 10.75 | 4.00 |
| 2020-12-31 | 13.06 | 15.93 | 10.39 | 16.00 |
| 2019-12-31 | 12.22 | 12.50 | 11.80 | 15.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 10.39 |
| 2018-09-30 | 6.38 |
| 2018-06-30 | 5.26 |
| 2018-03-31 | 3.75 |
| 2017-12-31 | 1.27 |
| 2017-09-30 | 1.50 |
| 2017-06-30 | 0.18 |
| 2017-03-31 | -0.25 |
| 2016-12-31 | -0.11 |
| 2016-09-30 | 1.73 |
| 2016-06-30 | 2.20 |
| 2016-03-31 | 2.61 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Caterpillar's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Caterpillar has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Caterpillar performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Caterpillar's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Caterpillar's 1-year earnings growth exceeds its 5-year average (715.3% vs -10.7%)
- Caterpillar's earnings growth has exceeded the US Machinery industry average in the past year (715.3% vs 27.9%).
Earnings and Revenue History
All data from Caterpillar Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 54,722.00 | 6,147.00 | 4,806.00 | 1,850.00 |
| 2018-09-30 | 53,276.00 | 3,800.00 | 4,826.00 | 1,945.00 |
| 2018-06-30 | 51,179.00 | 3,132.00 | 4,777.00 | 1,927.00 |
| 2018-03-31 | 48,499.00 | 2,227.00 | 4,725.00 | 1,923.00 |
| 2017-12-31 | 45,462.00 | 754.00 | 4,425.00 | 1,842.00 |
| 2017-09-30 | 42,140.00 | 882.00 | 4,515.00 | 1,866.00 |
| 2017-06-30 | 39,887.00 | 106.00 | 4,288.00 | 1,858.00 |
| 2017-03-31 | 38,898.00 | -146.00 | 4,099.00 | 1,868.00 |
| 2016-12-31 | 38,537.00 | -67.00 | 4,476.00 | 1,853.00 |
| 2016-09-30 | 39,993.00 | 1,010.00 | 3,890.00 | 2,001.00 |
| 2016-06-30 | 41,795.00 | 1,286.00 | 4,026.00 | 2,061.00 |
| 2016-03-31 | 43,770.00 | 1,538.00 | 4,196.00 | 2,103.00 |
| 2015-12-31 | 47,011.00 | 2,512.00 | 4,363.00 | 2,119.00 |
| 2015-09-30 | 50,225.00 | 3,363.00 | 4,616.00 | 2,125.00 |
| 2015-06-30 | 52,812.00 | 3,821.00 | 4,900.00 | 2,145.00 |
| 2015-03-31 | 54,645.00 | 4,018.00 | 5,032.00 | 2,151.00 |
| 2014-12-31 | 55,184.00 | 2,452.00 | 5,894.00 | 2,380.00 |
| 2014-09-30 | 55,342.00 | 3,941.00 | 4,984.00 | 2,024.00 |
| 2014-06-30 | 55,216.00 | 3,870.00 | 4,873.00 | 1,960.00 |
| 2014-03-31 | 55,687.00 | 3,831.00 | 4,866.00 | 1,992.00 |
| 2013-12-31 | 55,656.00 | 3,789.00 | 4,981.00 | 2,046.00 |
| 2013-09-30 | 57,329.00 | 3,483.00 | 5,098.00 | 2,192.00 |
| 2013-06-30 | 60,351.00 | 4,236.00 | 5,253.00 | 2,357.00 |
| 2013-03-31 | 63,104.00 | 4,975.00 | 5,349.00 | 2,441.00 |
| 2012-12-31 | 65,875.00 | 5,681.00 | 5,301.00 | 2,466.00 |
| 2012-09-30 | 67,043.00 | 6,531.00 | 5,208.00 | 2,457.00 |
| 2012-06-30 | 66,314.00 | 5,973.00 | 5,099.00 | 2,407.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Caterpillar made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
- Caterpillar used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
- Caterpillar has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Caterpillar's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Caterpillar has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Caterpillar's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Caterpillar's finances.
The net worth of a company is the difference between its assets and liabilities.
- Caterpillar is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Caterpillar's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Caterpillar Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 14,080.00 | 36,593.00 | 6,968.00 |
| 2018-09-30 | 15,890.00 | 35,776.00 | 7,189.00 |
| 2018-06-30 | 14,942.00 | 36,172.00 | 7,786.00 |
| 2018-03-31 | 15,272.00 | 35,318.00 | 7,034.00 |
| 2017-12-31 | 13,766.00 | 34,880.00 | 7,381.00 |
| 2017-09-30 | 15,697.00 | 35,925.00 | 8,736.00 |
| 2017-06-30 | 14,079.00 | 37,193.00 | 8,926.00 |
| 2017-03-31 | 13,660.00 | 38,283.00 | 8,223.00 |
| 2016-12-31 | 13,213.00 | 36,784.00 | 5,257.00 |
| 2016-09-30 | 15,715.00 | 37,112.00 | 4,894.00 |
| 2016-06-30 | 15,303.00 | 38,327.00 | 5,579.00 |
| 2016-03-31 | 15,753.00 | 38,366.00 | 4,744.00 |
| 2015-12-31 | 14,885.00 | 38,017.00 | 5,340.00 |
| 2015-09-30 | 15,968.00 | 37,547.00 | 4,808.00 |
| 2015-06-30 | 17,161.00 | 38,325.00 | 6,466.00 |
| 2015-03-31 | 17,038.00 | 38,781.00 | 6,218.00 |
| 2014-12-31 | 16,826.00 | 39,293.00 | 6,317.00 |
| 2014-09-30 | 18,896.00 | 39,291.00 | 4,805.00 |
| 2014-06-30 | 20,923.00 | 40,251.00 | 6,615.00 |
| 2014-03-31 | 20,369.00 | 38,135.00 | 4,057.00 |
| 2013-12-31 | 20,878.00 | 37,756.00 | 4,597.00 |
| 2013-09-30 | 18,177.00 | 39,543.00 | 4,108.00 |
| 2013-06-30 | 17,678.00 | 39,557.00 | 3,974.00 |
| 2013-03-31 | 18,318.00 | 40,495.00 | 3,594.00 |
| 2012-12-31 | 17,582.00 | 40,152.00 | 3,306.00 |
| 2012-09-30 | 17,936.00 | 39,865.00 | 3,363.00 |
| 2012-06-30 | 15,981.00 | 39,325.00 | 2,810.00 |
- Caterpillar's level of debt (259.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (180.9% vs 259.9% today).
- Debt is not well covered by operating cash flow (17.9%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 39.9x coverage).
Financial health checks
We assess Caterpillar's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Caterpillar has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Caterpillar's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Caterpillar
shares you are expected to receive
$48
in your first year as a dividend.
Dividend Amount
- Caterpillar's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
- Caterpillar's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| United States of America Machinery Industry Average Dividend Yield | Market Cap Weighted Average of 77 Stocks | 1.9% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 3.78 | 7.00 |
| 2020-12-31 | 3.70 | 17.00 |
| 2019-12-31 | 3.53 | 17.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-04-10 | 3.440 | 2.439 |
| 2018-12-12 | 3.440 | 2.609 |
| 2018-10-10 | 3.440 | 2.698 |
| 2018-06-13 | 3.440 | 2.416 |
| 2018-04-11 | 3.120 | 2.051 |
| 2017-12-13 | 3.120 | 2.006 |
| 2017-10-11 | 3.120 | 2.279 |
| 2017-06-14 | 3.120 | 2.728 |
| 2017-04-12 | 3.080 | 3.039 |
| 2016-12-14 | 3.080 | 3.259 |
| 2016-10-12 | 3.080 | 3.424 |
| 2016-06-08 | 3.080 | 3.804 |
| 2016-04-13 | 3.080 | 4.130 |
| 2015-12-09 | 3.080 | 4.559 |
| 2015-10-14 | 3.080 | 4.341 |
| 2015-07-31 | 3.080 | 4.218 |
| 2015-07-23 | 3.080 | 3.990 |
| 2015-04-08 | 2.800 | 3.275 |
| 2014-12-10 | 2.800 | 3.319 |
| 2014-10-08 | 2.800 | 2.831 |
| 2014-06-11 | 2.800 | 2.653 |
| 2014-04-09 | 2.400 | 2.296 |
| 2013-12-11 | 2.400 | 2.559 |
| 2013-10-09 | 2.400 | 2.838 |
| 2013-06-12 | 2.400 | 2.848 |
| 2013-04-10 | 2.080 | 2.433 |
| 2012-12-12 | 2.080 | 2.273 |
| 2012-10-08 | 2.080 | 2.456 |
| 2012-06-13 | 2.080 | 2.422 |
| 2012-04-11 | 1.840 | 1.929 |
| 2011-12-14 | 1.840 | 1.752 |
| 2011-10-12 | 1.840 | 2.010 |
| 2011-06-08 | 1.840 | 2.032 |
| 2011-04-13 | 1.760 | 1.651 |
| 2010-12-08 | 1.760 | 1.768 |
| 2010-10-13 | 1.760 | 2.141 |
| 2010-06-09 | 1.760 | 2.563 |
| 2010-04-14 | 1.680 | 2.631 |
| 2009-12-09 | 1.680 | 2.869 |
| 2009-10-14 | 1.680 | 2.911 |
| 2009-06-10 | 1.680 | 3.993 |
| 2009-04-23 | 1.680 | 4.606 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Caterpillar's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (3.1x coverage).
- Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
Income/ dividend checks
We assess Caterpillar's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Caterpillar afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Caterpillar has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $14,035,209 |
| AGE | 60 |
| TENURE AS CEO | 2.3 years |
CEO Bio
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 is a Director at Chevron Corporation since March 01, 2018. He served as Group President of Energy & Transportation at Caterpillar Inc. from January 2013 to January 1, 2017. Mr. Umpleby served as the Group President of Energy & Power Systems at Caterpillar Inc. from January 1, 2013 to 2016. He served as Vice President of Caterpillar Inc. from June 1, 2010 to 2013. He served as the President of Solar Turbines Incorporated of Caterpillar Inc. from June 1, 2010 to January 1, 2013. He served as a Vice President for oil and gas of Solar Turbines Inc. since 2007. He joined Solar Turbines in 1980 as an Associate Engineer. Over the course of the next decade with Solar, he held a number of engineering and sales positions with growing responsibilities. Since 1994, he served as the Director of Power Systems Operations and Plant Manager of Solar's Kearny Mesa gas turbine packaging facility. Since 1997, he served as a Vice President with responsibility for customer services at Solar. Since 2005, he served as a General Manager for Global Services in the Product Support Division at Caterpillar. His other Directorships and Memberships are at Business Roundtable; Latin America Conservation Council; Rose-Hulman Institute of Technology; U.S.– India Strategic Partnership Forum. He holds a Bachelor of Science in mechanical engineering from the Rose-Hulman Institute of Technology.
CEO Compensation
- Jim's compensation has increased by more than 20% in the past year.
- Jim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Caterpillar management team in years:
- The average tenure for the Caterpillar management team is less than 2 years, this suggests a new team.
Management Team
Jim Umpleby
Chairman of the Board & CEO
$14M
60
2.3 yrs
Tom Pellette
Senior Vice President
$7M
55
0.1 yrs
Bob De Lange
Group President of Services
$8M
48
2.3 yrs
Andrew R. Bonfield
Chief Financial Officer
55
0.6 yrs
G. Marvel
Chief Accounting Officer
56
0.1 yrs
Tom Bluth
CTO and VP of Innovation & Technology Development Division
1.7 yrs
Julie Lagacy
VP of Global Information Services (GIS) Division & Chief Information Officer
51
4.3 yrs
Amy Campbell
Director of Investor Relations
Suzette Long
Chief Legal Officer
52
2.3 yrs
Michael McGuire
Chief Compliance Officer
1.7 yrs
Board of Directors Tenure
Average tenure and age of the Caterpillar board of directors in years:
- The tenure for the Caterpillar board of directors is about average.
Board of Directors
Jim Umpleby
Chairman of the Board & CEO
$14M
60
0.3 yrs
Bill Osborn
Director
$313K
71
19.3 yrs
Miles White
Director
$295K
63
8.3 yrs
Dave Calhoun
Presiding Director
$525K
60
0.3 yrs
Juan Gallardo Thurlow
Director
$290K
71
21.3 yrs
Dan Dickinson
Director
$307K
57
13.3 yrs
Susan Schwab
Director
$285K
63
9.8 yrs
Dennis Muilenburg
Director
$275K
54
8.3 yrs
Debbie Reed-Klages
Director
$275K
62
4.3 yrs
Ray Wilkins
Director
$206K
67
2.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 30. Oct 18 | Buy | Bob De Lange | Individual | 26. Oct 18 | 26. Oct 18 | 1,080 | $115.58 | $124,826 | ||
| 15. May 18 | Buy | David Calhoun | Individual | 14. May 18 | 14. May 18 | 5,000 | $155.37 | $776,850 | ||
Management checks
We assess Caterpillar's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Caterpillar has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
What Should We Expect From Caterpillar Inc.'s (NYSE:CAT) Earnings In The Next 12 Months?
Help shape the future of investing tools and you could win a $250 gift card! … the consensus outlook from analysts appear fairly confident, … with profits predicted to increase by 15% next year
Simply Wall St - – Full articleA Closer Look At Caterpillar Inc.'s (NYSE:CAT) Impressive ROE
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.44 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleHave Insiders Been Buying Caterpillar Inc. (NYSE:CAT) Shares?
Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So shareholders might well want to know whether insiders have been buying or selling shares in Caterpillar Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares.
Simply Wall St - – Full articleIs It Too Late To Consider Buying Caterpillar Inc. (NYSE:CAT)?
saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, what if the stock is still a bargain
Simply Wall St - – Full articleWhat Does Caterpillar Inc.'s (NYSE:CAT) P/E Ratio Tell You?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll show how you can use Caterpillar Inc.'s (NYSE:CAT) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhat Kind Of Investor Owns Most Of Caterpillar Inc. (NYSE:CAT)?
Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We'd expect to see institutional investors on the register. … institutional investors have bought into the company.
Simply Wall St - – Full articleWhat Should Investors Know About Caterpillar Inc's (NYSE:CAT) Capital Returns?
and want a simplistic look at the return on Caterpillar Inc (NYSE:CAT) stock. … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Thus, to understand how your money can grow by investing in Caterpillar, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
Simply Wall St - – Full articleWhat To Know Before Buying Caterpillar Inc (NYSE:CAT) For Its Dividend
There is a lot to be liked about Caterpillar Inc (NYSE:CAT) as an income stock. … The company currently pays out a dividend yield of 2.5% to shareholders, making it a relatively attractive dividend stock. … Here's how I find good dividend stocks
Simply Wall St - – Full articleWhat Should Investors Know About The Future Of Caterpillar Inc's (NYSE:CAT)?
As Caterpillar Inc (NYSE:CAT) released its earnings announcement on 30 September 2018, … with profits predicted to ramp up by an impressive 93% next year,
Simply Wall St - – Full articleWhy Caterpillar Inc (NYSE:CAT) Looks Like A Quality Company
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Caterpillar has a return on equity of 21% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleCompany Info
Description
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Its Construction Industries segment offers asphalt pavers, compactors, cold planers, feller bunchers, harvesters, motorgraders, pipelayers, road reclaimers, skidders, telehandlers, and utility vehicles; backhoe, knuckleboom, compact track, multi-terrain, skid steer, and track-type loaders; forestry and wheel excavators; and site prep and track-type tractors. The company’s Resource Industries segment provides electric rope and hydraulic shovels, draglines, rotary drills, hard rock vehicles, track-type tractors, mining trucks, longwall miners, wheel loaders, off-highway and articulated trucks, wheel tractor scrapers, wheel dozers, landfill and soil compactors, machinery components, electronics and control systems, select work tools, and hard rock continuous mining systems. Its Energy & Transportation segment offers reciprocating engine powered generator sets; reciprocating engines and integrated systems for the power generation, marine, oil, and gas industries; turbines, centrifugal gas compressors, and related services; remanufactured reciprocating engines and components; and diesel-electric locomotives and components, and other rail-related products. The company’s Financial Products segment provides operating and finance leases, installment sale contracts, working capital loans, and wholesale financing; and insurance and risk management products. Its All Other operating segment manufactures filters and fluids, undercarriage, ground engaging tools, fluid transfer products, precision seals, and rubber sealing and connecting components; parts distribution; integrated logistics solutions and distribution services; and digital investments services. The company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. The company was founded in 1925 and is headquartered in Deerfield, Illinois.
Details
| Name: | Caterpillar Inc. |
| CAT | |
| Exchange: | NYSE |
| Founded: | 1925 |
| $81,945,775,036 | |
| 575,542,738 | |
| Website: | http://www.caterpillar.com |
| Address: |
Caterpillar Inc. 510 Lake Cook Road, Suite 100, Deerfield, Illinois, 60015, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | CAT | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | CAT1 | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| XTRA | CAT1 | Common Stock | XETRA Trading Platform | DE | EUR | 02. Jan 1968 | |
| LSE | 0Q18 | Common Stock | London Stock Exchange | GB | EUR | 02. Jan 1968 | |
| SWX | CAT | Common Stock | SIX Swiss Exchange | CH | CHF | 02. Jan 1968 | |
| ENXTPA | CATR | Common Stock | Euronext Paris | FR | EUR | 02. Jan 1968 | |
| WBAG | CAT | Common Stock | Wiener Boerse AG | AT | EUR | 02. Jan 1968 | |
| SNSE | CAT | Common Stock | Santiago Stock Exchange | CL | USD | 02. Jan 1968 | |
| BVC | CAT | Common Stock | Bolsa de Valores de Colombia | CO | COP | 02. Jan 1968 | |
| BMV | CAT * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jan 1968 | |
| BATS-CHIXE | CATZ | Common Stock | BATS 'Chi-X Europe' | GB | CHF | 02. Jan 1968 | |
| BOVESPA | CATP34 | BDR EACH REPR 1 COM USD1 | Bolsa de Valores de Sao Paulo | BR | BRL | 28. Dec 2011 | |
| BASE | CAT | CEDEAR EACH REP 1/5 COM USD1 | Buenos Aires Stock Exchange | AR | ARS | 08. Dec 2000 |
Number of employees
Current staff
Industry
| Construction Machinery and Heavy Trucks | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/22 23:34 |
| End of day share price update: | 2019/04/22 00:00 |
| Last estimates confirmation: | 2019/04/22 |
| Last earnings filing: | 2019/02/14 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
