(CAT) Caterpillar - Overview
Sector: Industrials | Industry: Farm & Heavy Construction Machinery | Exchange: NYSE (USA) | Market Cap: 398.850m USD | Total Return: 161.3% in 12m
Avg Turnover: 2.13B
EPS Trend: -14.8%
Qual. Beats: 3
Rev. Trend: 16.0%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
Rs Leader, Idiosyncratic Leader, Tailwind, Confidence
Caterpillar Inc. (CAT) is a global manufacturer of heavy machinery, power systems, and locomotives, operating primarily through its Construction Industries, Resource Industries, and Energy & Transportation segments. The company supports its physical product lines with a dedicated Financial Products division that offers leasing and insurance, as well as an All Other segment focused on logistics and digital mining solutions. Headquartered in Irving, Texas, the firm has evolved from its 1925 origins into a diversified industrial conglomerate serving the infrastructure, mining, and energy sectors.
The business model relies heavily on a global dealer network, which facilitates aftermarket parts sales and service-a high-margin revenue stream that often provides stability during cyclical downturns in new equipment demand. As a leader in the Construction Machinery & Heavy Transportation Equipment sub-industry, Caterpillar’s performance is frequently viewed as a leading indicator for global economic health due to its exposure to international infrastructure spending.
Reviewing historical performance trends on ValueRay can provide further context on how these segments contribute to overall valuation. Investors should monitor the Resource Industries segment specifically, as it is highly sensitive to fluctuating global commodity prices and mining capital expenditure cycles.
- Global infrastructure spending and construction activity dictate heavy equipment sales volume
- Commodity price fluctuations drive capital expenditure cycles in the Resource Industries segment
- Energy transition demand increases sales of reciprocating engines and industrial gas turbines
- Interest rate volatility impacts financing profitability and customer equipment purchasing power
- Input cost inflation and supply chain efficiency determine manufacturing operating margins
| 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 (15.3b): 2.55 < 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 0.35%; Δ 3.22k% > 0.5%) |
| Asset Turnover: 78.39% > 50% (prev 74.45%; Δ 3.94% > 0%) |
| Interest Coverage Ratio: 9.22 > 6 (EBITDA TTM 15.3b / 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: 0.14 (EBIT TTM 13.0b / Avg Total Assets 90.3b) |
| D: 0.94 (Book Value of Equity 72.0b / Total Liabilities 76.9b) |
| Altman-Z'' = 5.14 = AAA |
| DSRI: 1.03 (Receivables 21.9b/19.0b, Revenue 70.8b/63.3b) |
| GMI: 1.09 (GM 32.52% / 35.48%) |
| 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 = -2.87 (Cap -4..+1) = A |
As of May 27, 2026, the stock is trading at USD 908.55 with a total of 2,176,215 shares traded.
Over the past week, the price has changed by +5.16%,
over one month by +9.62%,
over three months by +20.90% and
over the past year by +161.27%.
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 | 920.1 | 1.3% |
P/E Trailing = 43.1035
P/E Forward = 36.1011
P/S = 5.6371
P/B = 21.5366
P/EG = 2.0736
Revenue TTM = 70.8b USD
EBIT TTM = 13.0b USD
EBITDA TTM = 15.3b 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 = 438b USD (399b + Debt 43.1b - CCE 4.07b)
Interest Coverage Ratio = 9.22 (Ebit TTM 13.0b / Interest Expense TTM 1.41b)
EV/FCF = 38.24x (Enterprise Value 438b / FCF TTM 11.4b)
FCF Yield = 2.62% (FCF TTM 11.4b / Enterprise Value 438b)
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 = 4.58 (Enterprise Value 438b / Total Assets 95.5b)
Interest Expense / Debt = 3.27% (Interest Expense 1.41b / Debt 43.1b)
Taxrate = 20.87% (670.0m / 3.21b)
NOPAT = 10.3b (EBIT 13.0b * (1 - 20.87%))
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 = 2.55 (Net Debt 39.0b / EBITDA 15.3b)
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 = 25.75% (EBIT 13.0b / Capital Employed (Equity 19.8b + L.T.Debt 30.6b))
RoIC = 14.44% (NOPAT 10.3b / Invested Capital 71.2b)
WACC = 9.87% (E(399b)/V(442b) * Re(10.66%) + D(43.1b)/V(442b) * Rd(3.27%) * (1-Tc(0.21)))
Discount Rate = 10.66% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -3.70%
[DCF] Terminal Value 73.20% ; FCFF base≈10.0b ; Y1≈11.5b ; Y5≈16.9b
[DCF] Fair Price = 350.6 (EV 200b - Net Debt 39.0b = Equity 161b / Shares 460.6m; r=9.87% [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=6.13 | Chg30d=+7.16% | Revisions=+79% | Analysts=17
EPS next Quarter (2026-09-30): EPS=6.37 | Chg30d=+3.55% | Revisions=+22% | Analysts=17
EPS current Year (2026-12-31): EPS=24.38 | Chg30d=+6.18% | Revisions=+84% | GrowthEPS=+27.9% | GrowthRev=+12.0%
EPS next Year (2027-12-31): EPS=29.81 | Chg30d=+7.01% | Revisions=+84% | GrowthEPS=+22.3% | GrowthRev=+10.1%
[Analyst] Revisions Ratio: +84%