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CAT

Caterpillar NYSE:CAT Stock Report

Last Price

US$207.19

Market Cap

US$109.0b

7D

0.4%

1Y

-15.4%

Updated

16 May, 2022

Data

Company Financials +
CAT fundamental analysis
Snowflake Score
Valuation2/6
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$207.19
52 Week HighUS$246.69
52 Week LowUS$179.67
Beta0.93
1 Month Change-9.05%
3 Month Change1.86%
1 Year Change-15.36%
3 Year Change69.23%
5 Year Change102.55%
Change since IPO2,715.32%

Recent News & Updates

Apr 30
Is It Too Late To Consider Buying Caterpillar Inc. (NYSE:CAT)?

Is It Too Late To Consider Buying Caterpillar Inc. (NYSE:CAT)?

Let's talk about the popular Caterpillar Inc. ( NYSE:CAT ). The company's shares saw a double-digit share price rise of...

Apr 25

Is Caterpillar Stock A Buy, Sell, Or Hold Ahead Of Upcoming Earnings?

Caterpillar's shares have done better than the broader market in 2022 year-to-date, as investors see CAT as a beneficiary of rising commodity prices. But I take the view that CAT will fall short of market expectations with its Q1 2022 earnings, taking into account supply chain woes and elevated distribution costs. My investment rating for Caterpillar is a Hold; my target price for CAT suggests that the current upside potential for its shares is not sufficiently appealing.

Shareholder Returns

CATUS MachineryUS Market
7D0.4%-0.4%0.7%
1Y-15.4%-18.2%-10.8%

Return vs Industry: CAT exceeded the US Machinery industry which returned -18.2% over the past year.

Return vs Market: CAT underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is CAT's price volatile compared to industry and market?
CAT volatility
CAT Average Weekly Movement4.6%
Machinery Industry Average Movement5.6%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

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$108.98b
Earnings (TTM)US$6.50b
Revenue (TTM)US$52.67b

17.0x

P/E Ratio

2.1x

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

2.1%

Current Dividend Yield

37%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


5.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CAT ($207.19) is trading below our estimate of fair value ($219.55)

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 (17x) compared to the US Machinery industry average (21.5x).

PE vs Market: CAT is poor value based on its PE Ratio (17x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: CAT is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: CAT is overvalued based on its PB Ratio (6.5x) compared to the US Machinery industry average (2.2x).


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


7.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAT's forecast earnings growth (7.6% per year) is above the savings rate (1.9%).

Earnings vs Market: CAT's earnings (7.6% per year) are forecast to grow slower than the US market (12.6% 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% 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 very high in 3 years time (40.2%).


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 29.3%.


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.


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


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


2.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CAT's dividend (2.14%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: CAT's dividend (2.14%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Jim Umpleby (63 yo)

5.33yrs

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 ($USD24.30M) is above average for companies of similar size in the US market ($USD13.26M).

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 (3.7 years average tenure).


Board Members

Experienced Board: CAT's board of directors are considered experienced (7.3 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$108.984b
  • 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 Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 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.