CAT Stock Analysis: Caterpillar | NYSE
Farm & Heavy Construction Machinery | NYSE, USA | Market Cap: 382.305m USD | 12M Return: 102.2% | US1491231015 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.63B
EPS Trend: -10.1%
Qual. Beats: 4
Rev. Trend: 41.2%
Qual. Beats: 5
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Caterpillar Inc. (NYSE: CAT) is a leading global manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives, headquartered in Irving, Texas, and incorporated in 1925. The company operates through four primary reportable segments-Construction Industries, Resource Industries, Energy & Transportation, and Financial Products-plus an All Other segment covering parts distribution, logistics, digital services, and mining software solutions. Its equipment portfolio spans everything from compact track loaders and asphalt pavers to electric rope shovels, mining trucks, and rail-related products, while the Financial Products segment supports customers and dealers through leases, installment financing, working capital loans, and insurance products.
Caterpillar sits within the Industrials sector (GICS Sub Industry: Construction Machinery & Heavy Transportation Equipment), a cyclical industry whose demand is closely tied to global construction activity, commodity prices, mining capital expenditure, and infrastructure investment. The companys diversified mix of equipment sales, aftermarket parts and services, and financing revenue provides multiple cyclical and recurring income streams, which has historically helped moderate the volatility typical of heavy-machinery peers.
- Mining truck orders surge on rising commodity prices
- Construction Industries demand weakens on elevated interest rates
- Services revenue scales as installed base expansion accelerates
| Net Income: 10.8b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 3.54 > 1.0 |
| NWC/Revenue: 19.62% < 20% (prev 18.72%; Δ 0.90% < -1%) |
| CFO/TA 0.13 > 3% & CFO 13.6b > Net Income 10.8b |
| Net Debt (38.4b) to EBITDA (15.4b): 2.50 < 3 |
| Current Ratio: 1.37 > 1.5 & < 3 |
| Outstanding Shares: last quarter (462.5m) vs 12m ago -1.91% < -2% |
| Gross Margin: 33.87% > 18% (prev 34.34%; Δ -0.46% > 0.5%) |
| Asset Turnover: 77.47% > 50% (prev 69.90%; Δ 7.56% > 0%) |
| Interest Coverage Ratio: 11.98 > 6 (EBIT TTM 13.1b / Interest Expense TTM 1.09b) |
| A: 0.14 (Total Current Assets 54.5b - Total Current Liabilities 39.8b) / Total Assets 103b |
| B: 0.68 (Retained Earnings 70.1b / Total Assets 103b) |
| C: 0.14 (EBIT TTM 13.1b / Avg Total Assets 96.5b) |
| D: 0.23 (Book Value of Equity 19.4b / Total Liabilities 83.2b) |
| Altman-Z'' = 4.32 = AA |
| DSRI: 1.01 (Receivables 24.0b/20.1b, Revenue 74.7b/63.1b) |
| GMI: 1.01 (GM 34.34% / 33.87%) |
| AQI: 0.97 (AQ_t 0.32 / AQ_t-1 0.33) |
| SGI: 1.18 (Revenue 74.7b / 63.1b) |
| TATA: -0.03 (NI 10.8b - CFO 13.6b) / TA 103b) |
| Beneish M = -2.90 (Cap -4..+1) = A |
As of August 07, 2026, the stock is trading at USD 856.96 with a total of 2,896,082 shares traded. Over the past week, the price has changed by +5.91%, over one month by -11.48%, over three months by -7.38% and over the past year by +102.16%.
Current recommended Stop Loss: 800.20 (which is 6.6% or 1.3 ATR below the current price).
Caterpillar has received a consensus analysts rating of 3.89. Therefore, it is recommended to buy CAT.
- StrongBuy: 11
- Buy: 3
- Hold: 14
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 963.6 | 12.4% |
P/E Trailing = 42.9256
P/E Forward = 33.3333
P/S = 5.4064
P/B = 20.1112
P/EG = 1.911
Revenue TTM = 74.7b USD
EBIT TTM = 13.1b USD
EBITDA TTM = 15.4b USD
Long Term Debt = 30.7b USD (from longTermDebt, last fiscal year)
Short Term Debt = 13.1b USD (from shortTermDebt, last quarter)
Debt = 45.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 6.00m
Net Debt = 38.4b USD (calculated: Debt 45.2b - CCE 6.71b)
Enterprise Value = 421b USD (382b + Debt 45.2b - CCE 6.71b)
Interest Coverage Ratio = 11.98 (Ebit TTM 13.1b / Interest Expense TTM 1.09b)
EV/FCF = 33.85x (Enterprise Value 421b / FCF TTM 12.4b)
FCF Yield = 2.95% (FCF TTM 12.4b / Enterprise Value 421b)
FCF Margin = 16.63% (FCF TTM 12.4b / Revenue TTM 74.7b)
Net Margin = 14.50% (Net Income TTM 10.8b / Revenue TTM 74.7b)
Gross Margin = 33.87% ((Revenue TTM 74.7b - Cost of Revenue TTM 49.4b) / Revenue TTM)
Gross Margin QoQ = 37.78% (prev 35.08%)
Tobins Q-Ratio = 4.10 (Enterprise Value 421b / Total Assets 103b)
Interest Expense / Debt = 2.42% (Interest Expense 1.09b / Debt 45.2b)
Taxrate = 23.50% (3.27b / 13.9b)
NOPAT = 10.0b (EBIT 13.1b * (1 - 23.50%))
Current Ratio = 1.37 (Total Current Assets 54.5b / Total Current Liabilities 39.8b)
Debt / Equity = 2.33 (Debt 45.2b / totalStockholderEquity, last quarter 19.4b)
Debt / EBITDA = 2.50 (Net Debt 38.4b / EBITDA 15.4b)
Debt / FCF = 3.09 (Net Debt 38.4b / FCF TTM 12.4b)
Total Stockholder Equity = 20.0b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.23% (Net Income 10.8b / Total Assets 103b)
RoE = 54.14% (Net Income TTM 10.8b / Total Stockholder Equity 20.0b)
RoCE = 25.82% (EBIT 13.1b / Capital Employed (Equity 20.0b + L.T.Debt 30.7b))
RoIC = 13.87% (NOPAT 10.0b / Invested Capital 72.2b)
WACC = 10.70% (E(382b)/V(427b) * Re(11.75%) + D(45.2b)/V(427b) * Rd(2.42%) * (1-Tc(0.23)))
Discount Rate = 11.75% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -97.91 | Cagr: -3.14%
[DCF] Terminal Value 70.74% ; FCFF base≈10.6b ; Y1≈12.1b ; Y5≈17.8b
[DCF] Fair Price = 327.1 (EV 189b - Net Debt 38.4b = Equity 151b / Shares 460.6m; r=10.70% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -10.09 | EPS CAGR: -0.79% | SUE: 4.0 | # QB: 4
Revenue Correlation: 41.19 | Revenue CAGR: 2.18% | SUE: 2.27 | # QB: 5
EPS current Quarter (2026-09-30): EPS=6.74 | Chg30d=+5.03% | Revisions=+22% | Analysts=10
EPS current Year (2026-12-31): EPS=26.26 | Chg30d=+6.37% | Revisions=+10% | GrowthEPS=+37.8% | GrowthRev=+17.0%
EPS next Year (2027-12-31): EPS=30.63 | Chg30d=+1.25% | Revisions=+18% | GrowthEPS=+16.6% | GrowthRev=+7.8%
[Analyst] Revisions Ratio: +21% (up=13, down=8)