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CAT

CaterpillarNYSE:CAT Stock Report

Market Cap

US$106.0b

7D

-3.2%

1Y

12.9%

Updated

30 Nov, 2021

Data

Company Financials +
CAT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance5/6
Financial Health5/6
Dividends5/6

CAT Stock Overview

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

Caterpillar Competitors

Westinghouse Air Brake Technologies

NYSE:WAB

US$17.4b

Oshkosh

NYSE:OSK

US$7.5b

Allison Transmission Holdings

NYSE:ALSN

US$3.8b

Terex

NYSE:TEX

US$3.1b

Price History & Performance

Summary of all time highs, changes and price drops for Caterpillar
Historical stock prices
Current Share PriceUS$195.92
52 Week HighUS$246.69
52 Week LowUS$172.28
Beta0.91
1 Month Change-3.97%
3 Month Change-7.09%
1 Year Change12.86%
3 Year Change41.00%
5 Year Change107.43%
Change since IPO2,562.18%

Recent News & Updates

Nov 28
Are Investors Undervaluing Caterpillar Inc. (NYSE:CAT) By 34%?

Are Investors Undervaluing Caterpillar Inc. (NYSE:CAT) By 34%?

How far off is Caterpillar Inc. ( NYSE:CAT ) from its intrinsic value? Using the most recent financial data, we'll take...

Nov 16
Returns At Caterpillar (NYSE:CAT) Are On The Way Up

Returns At Caterpillar (NYSE:CAT) Are On The Way Up

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Oct 25
Caterpillar's (NYSE:CAT) Rising Efficiency Should Provide some Peace of Mind

Caterpillar's (NYSE:CAT) Rising Efficiency Should Provide some Peace of Mind

After a minor slump, fueled by turbulence in the Chinese market, Caterpillar's (NYSE: CAT) stock is attempting to rebound. Yet, the institutions are giving mixed signals ahead of the quarterly earnings call, scheduled for October 28. We, in turn, remain optimistic about the stock as its profitability outshines the industry's averages.

Oct 16
Caterpillar (NYSE:CAT) Is Increasing Its Dividend To US$1.11

Caterpillar (NYSE:CAT) Is Increasing Its Dividend To US$1.11

Caterpillar Inc. ( NYSE:CAT ) will increase its dividend on the 19th of November to US$1.11. This will take the...

Shareholder Returns

CATUS MachineryUS Market
7D-3.2%-2.9%-0.9%
1Y12.9%17.8%23.3%

Return vs Industry: CAT underperformed the US Machinery industry which returned 17.8% over the past year.

Return vs Market: CAT underperformed the US Market which returned 23.3% over the past year.

Price Volatility

Is CAT's price volatile compared to industry and market?
CAT volatility
CAT Average Weekly Movement3.7%
Machinery Industry Average Movement4.8%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: CAT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CAT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192597,300Jim Umplebyhttps://www.caterpillar.com

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Its Construction Industries segment offers asphalt pavers, compactors, cold planers, motorgraders, pipelayers, road reclaimers, telehandlers, and utility vehicles; backhoe, 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, autonomous ready vehicles and solutions, and select work tools.

Caterpillar Fundamentals Summary

How do Caterpillar's earnings and revenue compare to its market cap?
CAT fundamental statistics
Market CapUS$105.98b
Earnings (TTM)US$5.15b
Revenue (TTM)US$48.41b

20.6x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CAT income statement (TTM)
RevenueUS$48.41b
Cost of RevenueUS$33.29b
Gross ProfitUS$12.83b
ExpensesUS$7.68b
EarningsUS$5.15b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)9.52
Gross Margin26.51%
Net Profit Margin10.64%
Debt/Equity Ratio220.4%

How did CAT perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

45%

Payout Ratio

Valuation

Is Caterpillar undervalued compared to its fair value and its price relative to the market?

35.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAT ($195.92) is trading below our estimate of fair value ($302.63)

Significantly Below Fair Value: CAT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CAT is good value based on its PE Ratio (20.6x) compared to the US Machinery industry average (29.7x).

PE vs Market: CAT is poor value based on its PE Ratio (20.6x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: CAT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CAT is overvalued based on its PB Ratio (6.4x) compared to the US Machinery industry average (2.8x).


Future Growth

How is Caterpillar forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAT's forecast earnings growth (14.3% per year) is above the savings rate (2%).

Earnings vs Market: CAT's earnings (14.3% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: CAT's earnings are forecast to grow, but not significantly.

Revenue vs Market: CAT's revenue (10.4% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: CAT's revenue (10.4% 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 very high in 3 years time (41%).


Past Performance

How has Caterpillar performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAT has high quality earnings.

Growing Profit Margin: CAT's current net profit margins (10.6%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: CAT's earnings have grown significantly by 28.5% per year over the past 5 years.

Accelerating Growth: CAT's earnings growth over the past year (55.3%) exceeds its 5-year average (28.5% per year).

Earnings vs Industry: CAT earnings growth over the past year (55.3%) exceeded the Machinery industry 32%.


Return on Equity

High ROE: Whilst CAT's Return on Equity (30.87%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Caterpillar's financial position?


Financial Position Analysis

Short Term Liabilities: CAT's short term assets ($41.9B) exceed its short term liabilities ($26.0B).

Long Term Liabilities: CAT's short term assets ($41.9B) exceed its long term liabilities ($38.1B).


Debt to Equity History and Analysis

Debt Level: CAT's net debt to equity ratio (169.1%) is considered high.

Reducing Debt: CAT's debt to equity ratio has reduced from 236.1% to 220.4% over the past 5 years.

Debt Coverage: CAT's debt is well covered by operating cash flow (21.4%).

Interest Coverage: CAT's interest payments on its debt are well covered by EBIT (16.6x coverage).


Balance Sheet


Dividend

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

2.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CAT's dividend (2.27%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: CAT's dividend (2.27%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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 (45.3%), 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 well covered by earnings (36.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Jim Umpleby (63 yo)

4.83yrs

Tenure

US$13,676,551

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 ($USD13.68M) is about average for companies of similar size in the US market ($USD11.14M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over 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 (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CAT insiders have only sold shares 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
  • Market Cap: US$105.981b
  • Shares outstanding: 540.94m
  • 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 Analysis2021/11/30 00:11
End of Day Share Price2021/11/29 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.