CAT Stock Analysis: Caterpillar | NYSE
Farm & Heavy Construction Machinery | NYSE, USA | Market Cap: 443.794m USD | 12M Return: 142.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 3.40B
EPS Trend: -14.8%
Qual. Beats: 3
Rev. Trend: 16.0%
Qual. Beats: 4
Warnings
Tailwinds
Seasonality 10.5 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: 9.42b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 2.72 > 1.0 |
| NWC/Revenue: 17.90% < 20% (prev 16.48%; Δ 1.42% < -1%) |
| CFO/TA 0.13 > 3% & CFO 12.3b > Net Income 9.42b |
| Net Debt (39.0b) to EBITDA (15.9b): 2.45 < 3 |
| Current Ratio: 1.35 > 1.5 & < 3 |
| Outstanding Shares: last quarter (465.8m) vs 12m ago -2.37% < -2% |
| Gross Margin: 32.52% > 18% (prev 35.48%; Δ -2.96% > 0.5%) |
| Asset Turnover: 78.39% > 50% (prev 74.45%; Δ 3.94% > 0%) |
| Interest Coverage Ratio: 9.65 > 6 (EBIT TTM 13.6b / Interest Expense TTM 1.41b) |
| A: 0.13 (Total Current Assets 48.6b - Total Current Liabilities 35.9b) / Total Assets 95.5b |
| B: 0.71 (Retained Earnings 68.0b / Total Assets 95.5b) |
| C: 0.15 (EBIT TTM 13.6b / Avg Total Assets 90.3b) |
| D: 0.24 (Book Value of Equity 18.7b / Total Liabilities 76.9b) |
| Altman-Z'' = 4.46 = AA |
| DSRI: 1.03 (Receivables 21.9b/19.0b, Revenue 70.8b/63.3b) |
| GMI: 1.09 (GM 35.48% / 32.52%) |
| AQI: 0.99 (AQ_t 0.33 / AQ_t-1 0.34) |
| SGI: 1.12 (Revenue 70.8b / 63.3b) |
| TATA: -0.03 (NI 9.42b - CFO 12.3b) / TA 95.5b) |
| Beneish M = -2.84 (Cap -4..+1) = A |
As of July 08, 2026, the stock is trading at USD 940.12 with a total of 3,690,712 shares traded. Over the past week, the price has changed by -9.01%, over one month by +2.67%, over three months by +30.02% and over the past year by +142.73%.
Current recommended Stop Loss: 887.70 (which is 5.6% or 1.2 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 | 951 | 1.2% |
P/E Trailing = 48.0803
P/E Forward = 40.9836
P/S = 6.2723
P/B = 24.47
P/EG = 2.3517
Revenue TTM = 70.8b USD
EBIT TTM = 13.6b USD
EBITDA TTM = 15.9b USD
Long Term Debt = 30.6b USD (from longTermDebt, last quarter)
Short Term Debt = 12.4b USD (from shortTermDebt, last quarter)
Debt = 43.1b USD (from shortLongTermDebtTotal, last quarter) + Leases 6.00m
Net Debt = 39.0b USD (calculated: Debt 43.1b - CCE 4.07b)
Enterprise Value = 483b USD (444b + Debt 43.1b - CCE 4.07b)
Interest Coverage Ratio = 9.65 (Ebit TTM 13.6b / Interest Expense TTM 1.41b)
EV/FCF = 42.17x (Enterprise Value 483b / FCF TTM 11.4b)
FCF Yield = 2.37% (FCF TTM 11.4b / Enterprise Value 483b)
FCF Margin = 16.18% (FCF TTM 11.4b / Revenue TTM 70.8b)
Net Margin = 13.31% (Net Income TTM 9.42b / Revenue TTM 70.8b)
Gross Margin = 32.52% ((Revenue TTM 70.8b - Cost of Revenue TTM 47.7b) / Revenue TTM)
Gross Margin QoQ = 35.08% (prev 28.62%)
Tobins Q-Ratio = 5.05 (Enterprise Value 483b / Total Assets 95.5b)
Interest Expense / Debt = 3.27% (Interest Expense 1.41b / Debt 43.1b)
Taxrate = 23.48% (2.86b / 12.2b)
NOPAT = 10.4b (EBIT 13.6b * (1 - 23.48%))
Current Ratio = 1.35 (Total Current Assets 48.6b / Total Current Liabilities 35.9b)
Debt / Equity = 2.31 (Debt 43.1b / totalStockholderEquity, last quarter 18.7b)
Debt / EBITDA = 2.45 (Net Debt 39.0b / EBITDA 15.9b)
Debt / FCF = 3.41 (Net Debt 39.0b / FCF TTM 11.4b)
Total Stockholder Equity = 19.8b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.44% (Net Income 9.42b / Total Assets 95.5b)
RoE = 47.51% (Net Income TTM 9.42b / Total Stockholder Equity 19.8b)
RoCE = 26.95% (EBIT 13.6b / Capital Employed (Equity 19.8b + L.T.Debt 30.6b))
RoIC = 15.18% (NOPAT 10.4b / Invested Capital 68.5b)
WACC = 10.27% (E(444b)/V(487b) * Re(11.02%) + D(43.1b)/V(487b) * Rd(3.27%) * (1-Tc(0.23)))
Discount Rate = 11.02% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -3.70%
[DCF] Terminal Value 72.03% ; FCFF base≈10.0b ; Y1≈11.5b ; Y5≈16.9b
[DCF] Fair Price = 327.9 (EV 190b - Net Debt 39.0b = Equity 151b / Shares 460.6m; r=10.27% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -14.76 | EPS CAGR: -1.11% | SUE: 3.02 | # QB: 3
Revenue Correlation: 16.00 | Revenue CAGR: 0.56% | SUE: 1.70 | # QB: 4
EPS current Quarter (2026-06-30): EPS=6.16 | Chg30d=+0.53% | Revisions=+62% | Analysts=19
EPS next Quarter (2026-09-30): EPS=6.40 | Chg30d=+0.45% | Revisions=+38% | Analysts=19
EPS current Year (2026-12-31): EPS=24.60 | Chg30d=+0.58% | Revisions=+67% | GrowthEPS=+29.1% | GrowthRev=+12.7%
EPS next Year (2027-12-31): EPS=30.11 | Chg30d=+1.00% | Revisions=+77% | GrowthEPS=+22.4% | GrowthRev=+10.5%
[Analyst] Revisions Ratio: +83% (up=25, down=1)