Caterpillar
Market Cap
US$73.1b
Last Updated
2020/06/06 02:00 UTC
Data Sources
Company Financials +
Executive Summary
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer and fair value.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
12.5%
CAT
9.0%
US Machinery
3.8%
US Market
1 Year Return
8.6%
CAT
3.5%
US Machinery
9.7%
US Market
Return vs Industry: CAT exceeded the US Machinery industry which returned 0.5% over the past year.
Return vs Market: CAT matched the US Market which returned 8.9% over the past year.
Shareholder returns
| CAT | Industry | Market | |
|---|---|---|---|
| 7 Day | 12.5% | 9.0% | 3.8% |
| 30 Day | 25.9% | 20.9% | 11.4% |
| 90 Day | 11.3% | 7.2% | 6.8% |
| 1 Year | 12.1%8.6% | 5.5%3.5% | 12.1%9.7% |
| 3 Year | 38.1%27.6% | 18.6%11.0% | 36.2%27.2% |
| 5 Year | 79.9%53.8% | 52.5%34.3% | 63.7%45.4% |
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
2 months ago | Simply Wall St
Is Caterpillar Inc. (NYSE:CAT) Trading At A 44% Discount?2 months ago | Simply Wall St
How Does Caterpillar's (NYSE:CAT) P/E Compare To Its Industry, After The Share Price Drop?3 months ago | Simply Wall St
What Kind Of Shareholders Own Caterpillar Inc. (NYSE:CAT)?Valuation
Is Caterpillar undervalued compared to its fair value and its price relative to the market?
7.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CAT ($135.12) is trading below our estimate of fair value ($146.17)
Significantly Below Fair Value: CAT is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CAT is good value based on its PE Ratio (14.1x) compared to the Machinery industry average (21.1x).
PE vs Market: CAT is good value based on its PE Ratio (14.1x) compared to the US market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: CAT is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: CAT is overvalued based on its PB Ratio (5.2x) compared to the US Machinery industry average (2.2x).
Next Steps
Future Growth
How is Caterpillar forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
12.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAT's forecast earnings growth (12% per year) is above the savings rate (2.2%).
Earnings vs Market: CAT's earnings (12% per year) are forecast to grow slower than the US market (22.3% per year).
High Growth Earnings: CAT's earnings are forecast to grow, but not significantly.
Revenue vs Market: CAT's revenue (5.6% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: CAT's revenue (5.6% 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 high in 3 years time (26.9%)
Next Steps
Past Performance
How has Caterpillar performed over the past 5 years?
27.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAT has high quality earnings.
Growing Profit Margin: CAT's current net profit margins (10.4%) are lower than last year (11.5%).
Past Earnings Growth Analysis
Earnings Trend: CAT's earnings have grown significantly by 27% 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 (-16.6%) over the past year, making it difficult to compare to the Machinery industry average (-5.7%).
Return on Equity
High ROE: Whilst CAT's Return on Equity (37.24%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Caterpillar's financial position?
Financial Position Analysis
Short Term Liabilities: CAT's short term assets ($37.6B) exceed its short term liabilities ($26.5B).
Long Term Liabilities: CAT's short term assets ($37.6B) exceed its long term liabilities ($35.1B).
Debt to Equity History and Analysis
Debt Level: CAT's debt to equity ratio (256.3%) is considered high.
Reducing Debt: CAT's debt to equity ratio has increased from 227% to 256.3% over the past 5 years.
Debt Coverage: CAT's debt is not well covered by operating cash flow (19%).
Interest Coverage: CAT's interest payments on its debt are well covered by EBIT (31.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Caterpillar's current dividend yield, its reliability and sustainability?
3.05%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CAT's dividend (3.05%) is higher than the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: CAT's dividend (3.05%) is low compared to the top 25% of dividend payers in the US market (4.32%).
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 reasonably low payout ratio (43.1%), CAT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CAT's dividends in 3 years are forecast to be covered by earnings (65% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Jim Umpleby (61yo)
3.42yrs
Tenure
US$34,519,129
Compensation
Mr. D. James Umpleby, III, also known as Jim, has been the Chief Executive Officer and Chairman of the Board of Caterpillar Inc. since January 1, 2017 and December 12, 2018 respectively. Mr. Umpleby is a D ...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD34.52M) is above average for companies of similar size in the US market ($USD11.52M).
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 3.42yrs | US$34.52m | 0.016% $11.7m | |
| Chief Financial Officer | 1.75yrs | US$6.05m | 0.0014% $1.0m | |
| Group President of Energy & Transportation | 1.25yrs | US$5.54m | 0.012% $8.7m | |
| Group President of Resource Industries | 4.17yrs | US$5.91m | 0.0043% $3.1m | |
| Group President of Services | 3.42yrs | US$5.43m | 0.0050% $3.6m | |
| Chief Accounting Officer | 1.25yrs | no data | 0.00029% $212.1k | |
| CTO and Vice President of Innovation & Technology Development Division | 1.08yrs | no data | no data | |
| VP of Global Information Services (GIS) Division & Chief Information Officer | 5.42yrs | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| Chief Legal Officer | 3.42yrs | no data | 0.0023% $1.7m |
3.4yrs
Average Tenure
53yo
Average Age
Experienced Management: CAT's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 3.42yrs | US$34.52m | 0.016% $11.7m | |
| Independent Director | 9.42yrs | US$331.72k | 0.0016% $1.1m | |
| Independent Director | 20.42yrs | US$326.69k | 0.010% $7.4m | |
| Independent Director | 17.42yrs | US$334.20k | 0.0064% $4.7m | |
| Independent Presiding Director | 1.5yrs | US$364.48k | 0.0087% $6.4m | |
| Independent Director | 11yrs | US$316.97k | 0.0038% $2.8m | |
| Independent Director | 14.42yrs | US$351.39k | 0.0018% $1.3m | |
| Independent Director | 5.42yrs | US$301.97k | 0.0015% $1.1m | |
| Independent Director | 3.42yrs | US$304.97k | 0.00079% $577.7k | |
| Independent Director | 22.42yrs | US$314.70k | 0.051% $37.3m |
10.2yrs
Average Tenure
64yo
Average Age
Experienced Board: CAT's board of directors are seasoned and experienced ( 10.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$73.132b
- Shares outstanding: 541.24m
- Website: https://www.caterpillar.com
Number of Employees
Location
- Caterpillar Inc.
- 510 Lake Cook Road
- Suite 100
- Deerfield
- Illinois
- 60015
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CAT | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| CAT | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1968 |
| 0Q18 | LSE (London Stock Exchange) | Yes | Common Stock | GB | EUR | Jan 1968 |
| CAT1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| CAT * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| CATR | ENXTPA (Euronext Paris) | Yes | Common Stock | FR | EUR | Jan 1968 |
| CAT1 | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| CAT | BVC (Bolsa de Valores de Colombia) | Yes | Common Stock | CO | COP | Jan 1968 |
| CAT | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jan 1968 |
| CATZ | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Stock | GB | CHF | Jan 1968 |
| CAT | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| CAT-U | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1968 |
| CAT | BASE (Buenos Aires Stock Exchange) | CEDEAR ECH REP 1/5 COM USD1 | AR | ARS | Dec 2000 | |
| CATP34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM USD1 | BR | BRL | Dec 2011 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 02:00 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.