| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
CAT Stock Overview
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide.
Caterpillar Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$185.49 |
| 52 Week High | US$237.90 |
| 52 Week Low | US$176.02 |
| Beta | 0.93 |
| 1 Month Change | -14.58% |
| 3 Month Change | -16.39% |
| 1 Year Change | -14.25% |
| 3 Year Change | 36.10% |
| 5 Year Change | 72.61% |
| Change since IPO | 2,420.46% |
Recent News & Updates
Caterpillar (NYSE:CAT) Is Increasing Its Dividend To US$1.20
The board of Caterpillar Inc. ( NYSE:CAT ) has announced that it will be increasing its dividend by 8.1% on the 19th of...
The Return Trends At Caterpillar (NYSE:CAT) Look Promising
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...
Caterpillar's Growth Prospects Look Attractive
Caterpillar is experiencing strong demand across its portfolio, and this momentum is expected to continue for the remainder of 2022. The pricing increases should start getting reflected in the company’s margins in the second half of 2022. The company has announced a share repurchase plan of $15 bn to enhance shareholders' value.
Shareholder Returns
| CAT | US Machinery | US Market | |
|---|---|---|---|
| 7D | -3.7% | 1.5% | 6.6% |
| 1Y | -14.2% | -20.1% | -18.4% |
Return vs Industry: CAT exceeded the US Machinery industry which returned -20.1% over the past year.
Return vs Market: CAT exceeded the US Market which returned -18.4% over the past year.
Price Volatility
| CAT volatility | |
|---|---|
| CAT Average Weekly Movement | 5.3% |
| Machinery Industry Average Movement | 6.1% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.6% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: CAT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: CAT's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1925 | 107,700 | Jim Umpleby | https://www.caterpillar.com |
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact track and multi-terrain loaders, excavators, motorgraders, pipelayers, road reclaimers, site prep tractors, skid steer loaders, telehandlers, and utility vehicles; mini, small, medium, and large excavators; compact, small, and medium wheel loaders; track-type tractors and loaders; and wheel excavators. The Resource Industries segment provides electric rope shovels, draglines, hydraulic shovels, rotary drills, hard rock vehicles, track-type tractors, mining trucks, longwall miners, wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, fleet management, landfill compactors, soil compactors, machinery components, autonomous ready vehicles and solutions, select work tools, and safety services and mining performance solutions.
Caterpillar Fundamentals Summary
| CAT fundamental statistics | |
|---|---|
| Market Cap | US$98.94b |
| Earnings (TTM) | US$6.50b |
| Revenue (TTM) | US$52.67b |
15.2x
P/E Ratio1.9x
P/S RatioIs CAT overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CAT income statement (TTM) | |
|---|---|
| Revenue | US$52.67b |
| Cost of Revenue | US$37.06b |
| Gross Profit | US$13.31b |
| Other Expenses | US$6.82b |
| Earnings | US$6.50b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 12.18 |
| Gross Margin | 25.27% |
| Net Profit Margin | 12.33% |
| Debt/Equity Ratio | 219.8% |
How did CAT perform over the long term?
See historical performance and comparisonDividends
2.4%
Current Dividend Yield37%
Payout RatioDoes CAT pay a reliable dividends?
See CAT dividend history and benchmarks| Caterpillar dividend dates | |
|---|---|
| Ex Dividend Date | Jul 19 2022 |
| Dividend Pay Date | Aug 19 2022 |
| Days until Ex dividend | 22 days |
| Days until Dividend pay date | 53 days |
Does CAT pay a reliable dividends?
See CAT dividend history and benchmarksValuation
Is CAT undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CAT?
Other financial metrics that can be useful for relative valuation.
| What is CAT's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$98.94b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.5x |
| Enterprise Value/EBITDA | 12.4x |
| PEG Ratio | 2x |
Price to Earnings Ratio vs Peers
How does CAT's PE Ratio compare to its peers?
| CAT PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 15.8x | ||
PCAR PACCAR | 14.8x | 4.1% | US$29.3b |
CMI Cummins | 14.1x | 4.9% | US$27.5b |
WAB Westinghouse Air Brake Technologies | 26.2x | 13.9% | US$15.5b |
ALSN Allison Transmission Holdings | 8.2x | 0.09% | US$3.7b |
CAT Caterpillar | 15.2x | 7.7% | US$98.9b |
Price-To-Earnings vs Peers: CAT is good value based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (15.8x).
Price to Earnings Ratio vs Industry
How does CAT's PE Ratio compare vs other companies in the US Machinery Industry?
Price-To-Earnings vs Industry: CAT is good value based on its Price-To-Earnings Ratio (15.2x) compared to the US Machinery industry average (21.7x)
Price to Earnings Ratio vs Fair Ratio
What is CAT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 15.2x |
| Fair PE Ratio | 26.4x |
Price-To-Earnings vs Fair Ratio: CAT is good value based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (26.4x).
Share Price vs Fair Value
What is the Fair Price of CAT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CAT ($185.49) is trading below our estimate of fair value ($224.89)
Significantly Below Fair Value: CAT is trading below fair value, but not by a significant amount.
Price to Earnings Growth Ratio
PEG Ratio: CAT is poor value based on its PEG Ratio (2x)
Discover undervalued companies
Future Growth
How is Caterpillar forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
7.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAT's forecast earnings growth (7.7% per year) is above the savings rate (1.9%).
Earnings vs Market: CAT's earnings (7.7% per year) are forecast to grow slower than the US market (13.9% per year).
High Growth Earnings: CAT's earnings are forecast to grow, but not significantly.
Revenue vs Market: CAT's revenue (4.9% per year) is forecast to grow slower than the US market (8.4% per year).
High Growth Revenue: CAT's revenue (4.9% 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 (39.2%)
Discover growth companies
Past Performance
How has Caterpillar performed over the past 5 years?
Past Performance Score
5/6Past Performance Score 5/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
23.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAT has high quality earnings.
Growing Profit Margin: CAT's current net profit margins (12.3%) are higher than last year (8%).
Past Earnings Growth Analysis
Earnings Trend: CAT has become profitable over the past 5 years, growing earnings by 23.4% per year.
Accelerating Growth: CAT's earnings growth over the past year (89.1%) exceeds its 5-year average (23.4% per year).
Earnings vs Industry: CAT earnings growth over the past year (89.1%) exceeded the Machinery industry 24%.
Return on Equity
High ROE: Whilst CAT's Return on Equity (38.01%) is high, this metric is skewed due to their high level of debt.
Discover strong past performing companies
Financial Health
How is Caterpillar's financial position?
Financial Health Score
4/6Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: CAT's short term assets ($42.6B) exceed its short term liabilities ($29.5B).
Long Term Liabilities: CAT's short term assets ($42.6B) exceed its long term liabilities ($35.6B).
Debt to Equity History and Analysis
Debt Level: CAT's net debt to equity ratio (182%) is considered high.
Reducing Debt: CAT's debt to equity ratio has reduced from 279.6% to 219.8% over the past 5 years.
Debt Coverage: CAT's debt is not well covered by operating cash flow (14.9%).
Interest Coverage: CAT's interest payments on its debt are well covered by EBIT (21.8x coverage).
Balance Sheet
Discover healthy companies
Dividend
What is Caterpillar current dividend yield, its reliability and sustainability?
Dividend Score
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.39%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CAT's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: CAT's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (4.24%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (37%), CAT's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: At its current cash payout ratio (80.7%), CAT's dividend payments are covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Jim Umpleby (63 yo)
5.42yrs
Tenure
US$24,298,032
Compensation
Mr. D. James Umpleby III, also known as Jim, has been the Chief Executive Officer and Director of Caterpillar Inc. since January 1, 2017 and has been its Chairman of the Board since December 12, 2018. Mr....
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD24.30M) is above average for companies of similar size in the US market ($USD13.44M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: CAT's management team is considered experienced (3.8 years average tenure).
Board Members
Experienced Board: CAT's board of directors are considered experienced (6.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CAT insiders have sold more shares than they have bought 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 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
- Implied Market Cap: US$98.936b
- Shares outstanding: 533.37m
- Website: https://www.caterpillar.com
Number of Employees
Location
- Caterpillar Inc.
- 510 Lake Cook Road
- Suite 100
- Deerfield
- Illinois
- 60015
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/26 00:00 |
| End of Day Share Price | 2022/06/24 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.