NYSE:CAT

Stock Analysis Report

Executive Summary

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.

Snowflake

Fundamentals

Solid track record established dividend payer.


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


Market Performance


7 Day Return

9.0%

NYSE:CAT

6.0%

US Machinery

1.2%

US Market


1 Year Return

-7.7%

NYSE:CAT

-2.1%

US Machinery

1.7%

US Market

CAT underperformed the Machinery industry which returned -2.1% over the past year.

CAT underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

CATIndustryMarket
7 Day9.0%6.0%1.2%
30 Day14.9%11.3%4.9%
90 Day5.1%4.1%3.7%
1 Year-5.2%-7.7%-0.06%-2.1%3.9%1.7%
3 Year76.8%63.0%54.6%44.5%47.2%37.7%
5 Year52.7%30.5%54.3%35.2%60.0%42.4%

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

Valuation

Is Caterpillar undervalued based on future cash flows and its price relative to the stock market?

20%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Caterpillar earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Caterpillar is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Caterpillar expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Caterpillar's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Caterpillar's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Caterpillar's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Caterpillar's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Caterpillar's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Caterpillar is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Caterpillar performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Caterpillar's year on year earnings growth rate has been positive over the past 5 years.

Caterpillar's 1-year earnings growth exceeds its 5-year average (100.4% vs 9.7%)

Caterpillar's earnings growth has exceeded the US Machinery industry average in the past year (100.4% vs 18.7%).


Return on Equity

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.


Return on Assets

Caterpillar used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Caterpillar has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Caterpillar's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Caterpillar's level of debt (244.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (192.1% vs 244.3% today).

Debt is not well covered by operating cash flow (19.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 44.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

3.07%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Caterpillar's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Caterpillar's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

What is the CEO of Caterpillar's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Jim Umpleby (61yo)

2.7yrs

Tenure

US$27,289,513

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

Jim's remuneration is higher than average for companies of similar size in United States of America.

Jim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

53yo

Average Age

The tenure for the Caterpillar management team is about average.


Board Age and Tenure

9.5yrs

Average Tenure

63.5yo

Average Age

The tenure for the Caterpillar board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$124,82630 Oct 18
Bob De Lange
EntityIndividual
Role
Senior Key Executive
Group President of Services
Shares1,080
Max PriceUS$115.58

Ownership Breakdown


Management Team

  • Andrew R. Bonfield (56yo)

    Chief Financial Officer

    • Tenure: 1yrs
    • Compensation: US$7.71m
  • Jennifer Driscoll (53yo)

    Director of Investor Relations

    • Tenure: 0yrs
  • Denise Johnson (53yo)

    Group President of Resource Industries

    • Tenure: 3.4yrs
    • Compensation: US$7.20m
  • Jim Umpleby (61yo)

    Chairman of the Board & CEO

    • Tenure: 2.7yrs
    • Compensation: US$27.29m
  • Julie Lagacy (52yo)

    VP of Global Information Services (GIS) Division & Chief Information Officer

    • Tenure: 4.7yrs
  • Tom Pellette (56yo)

    Senior Vice President

    • Tenure: 0.5yrs
    • Compensation: US$9.27m
  • Karl Weiss

    CTO and Vice President of Innovation & Technology Development Division

    • Tenure: 0.3yrs
  • Bob De Lange (49yo)

    Group President of Services

    • Tenure: 2.7yrs
    • Compensation: US$7.30m
  • Suzette Long (53yo)

    Chief Legal Officer

    • Tenure: 2.7yrs
  • G. Marvel (57yo)

    Chief Accounting Officer

    • Tenure: 0.5yrs

Board Members

  • Miles White (64yo)

    Director

    • Tenure: 8.7yrs
    • Compensation: US$328.06k
  • Bill Osborn (72yo)

    Director

    • Tenure: 19.7yrs
    • Compensation: US$339.78k
  • Ed Rust (69yo)

    Director

    • Tenure: 16.7yrs
    • Compensation: US$339.04k
  • Dave Calhoun (61yo)

    Presiding Director

    • Tenure: 0.8yrs
    • Compensation: US$550.02k
  • Susan Schwab (64yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$311.22k
  • Dan Dickinson (58yo)

    Director

    • Tenure: 13.7yrs
    • Compensation: US$330.54k
  • Debbie Reed-Klages (63yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$304.06k
  • Juan Ignacio Gallardo Thurlow (72yo)

    Director

    • Tenure: 21.7yrs
    • Compensation: US$314.78k
  • Dennis Muilenburg (55yo)

    Director

    • Tenure: 8.7yrs
    • Compensation: US$300.06k
  • Jim Umpleby (61yo)

    Chairman of the Board & CEO

    • Tenure: 2.7yrs
    • Compensation: US$27.29m

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$75.263b
  • Shares outstanding: 562.59m
  • Website: https://www.caterpillar.com

Number of Employees


Location

  • Caterpillar Inc.
  • 510 Lake Cook Road
  • Suite 100
  • Deerfield
  • Illinois
  • 60015
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAT1XTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
CATNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
CATSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
CAT1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
CAT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
CATRENXTPA (Euronext Paris)YesCommon StockFREURJan 1968
CATZBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBCHFJan 1968
CATBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 1968
CATSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
CATWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
CATBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/5 COM USD1ARARSDec 2000
CATP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD1BRBRLDec 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:34
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.