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CAT

Caterpillar NYSE:CAT Stock Report

Last Price

US$185.49

Market Cap

US$98.9b

7D

-3.7%

1Y

-14.2%

Updated

26 Jun, 2022

Data

Company Financials +
CAT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends5/6

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

Summary of all time highs, changes and price drops for Caterpillar
Historical stock prices
Current Share PriceUS$185.49
52 Week HighUS$237.90
52 Week LowUS$176.02
Beta0.93
1 Month Change-14.58%
3 Month Change-16.39%
1 Year Change-14.25%
3 Year Change36.10%
5 Year Change72.61%
Change since IPO2,420.46%

Recent News & Updates

Jun 11
Caterpillar (NYSE:CAT) Is Increasing Its Dividend To US$1.20

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...

Jun 06
The Return Trends At Caterpillar (NYSE:CAT) Look Promising

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...

Jun 02

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

CATUS MachineryUS 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

Is CAT's price volatile compared to industry and market?
CAT volatility
CAT Average Weekly Movement5.3%
Machinery Industry Average Movement6.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
1925107,700Jim Umplebyhttps://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

How do Caterpillar's earnings and revenue compare to its market cap?
CAT fundamental statistics
Market CapUS$98.94b
Earnings (TTM)US$6.50b
Revenue (TTM)US$52.67b

15.2x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CAT income statement (TTM)
RevenueUS$52.67b
Cost of RevenueUS$37.06b
Gross ProfitUS$13.31b
Other ExpensesUS$6.82b
EarningsUS$6.50b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)12.18
Gross Margin25.27%
Net Profit Margin12.33%
Debt/Equity Ratio219.8%

How did CAT perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

37%

Payout Ratio

Does CAT pay a reliable dividends?

See CAT dividend history and benchmarks
When do you need to buy CAT by to receive an upcoming dividend?
Caterpillar dividend dates
Ex Dividend DateJul 19 2022
Dividend Pay DateAug 19 2022
Days until Ex dividend22 days
Days until Dividend pay date53 days

Does CAT pay a reliable dividends?

See CAT dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is CAT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation 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.

CAT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA12.4x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does CAT's PE Ratio compare to its peers?

CAT PE Ratio vs Peers
The above table shows the PE ratio for CAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.8x
PCAR PACCAR
14.8x4.1%US$29.3b
CMI Cummins
14.1x4.9%US$27.5b
WAB Westinghouse Air Brake Technologies
26.2x13.9%US$15.5b
ALSN Allison Transmission Holdings
8.2x0.09%US$3.7b
CAT Caterpillar
15.2x7.7%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.

CAT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.2x
Fair PE Ratio26.4x

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

2/6

Future 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

5/6

Past 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

4/6

Financial 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


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Dividend

What is Caterpillar current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.39%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 27 2022Ex Dividend DateJul 19 2022Dividend Pay DateAug 19 202231 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.