About Caterpillar, Inc.
Caterpillar Inc. provides construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. The Construction Industries segment offers asphalt pavers, cold planers, compactors, forestry machines, material handlers, motor graders, pipelayers, road reclaimers, telehandlers, track-type tractors, and track and wheel excavators; backhoe, compact track, skid steer, track-type, and wheel loaders; and related parts and work tools. Its Resource Industries segment provides electric rope and hydraulic shovels, draglines, rotary drills, hard rock vehicles, mining trucks, wheel loaders, off-highway and articulated trucks, wide-body trucks, wheel tractor scrapers and dozers, and landfill and soil compactors; machinery components, and wear and maintenance components; and technology products and services for fleet management, equipment management analytics, autonomous machine capabilities, safety services, and mining performance solutions. The Energy & Transportation segment offers reciprocating engine powered generator sets; reciprocating engines, drivetrain, and integrated systems and solutions; centrifugal gas compressors and related services; and diesel-electric locomotive components, and other rail-related products. Its Financial Products segment provides operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, working capital loans, and wholesale financing; and insurance and risk management products and services. The All Other segment offers parts distribution; logistics and distribution services; electronics and control systems; dealer portfolio management; brand management and marketing strategy; and digital investment services. It also provides mining software solutions. The company was formerly known as Caterpillar Tractor Co. Caterpillar Inc. was incorporated in 1925 and is headquartered in Irving, Texas.
Caterpillar, Inc. (CAT) is a Industrials company in the Farm & Heavy Construction Machinery industry with a market capitalisation of $370B. The stock trades at 34.64x trailing earnings and yields 0.8%.
- Sector
- Industrials
- Industry
- Farm & Heavy Construction Machinery
- Market cap
- $370B
- P/E ratio
- 34.64
- Forward P/E
- 24.86
- EPS (TTM)
- $23.24
- Revenue (TTM)
- $74.7B
- Free cash flow
- $5B
- Profit margin
- 14.5%
- Dividend yield
- 0.8%
- Beta
- 1.59
- Shares outstanding
- 459.7M
Financial health: Strong7.7/10
7 strengths, 1 concern. Weakest points: debt to equity.
- Debt to equity: 1.70 (Concern, benchmark < 0.5) — Debt of 1.70x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 2.9y (Strong, benchmark < 4 years) — Net debt of $26.2B is 2.9x annual free cash flow — about 3 years of cash flow to repay.
- Current ratio: 1.44 (Watch, benchmark > 1.5) — Short-term assets cover 1.44x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 57.0% (Strong, benchmark > 15%) — Earns 57.0% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 29.7% (Watch, benchmark > 40%) — Keeps 29.7% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 14.5% (Strong, benchmark > 10%) — Turns 14.5% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $8.9B (Strong, benchmark positive) — Generated $8.9B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 24.0% (Strong, benchmark > 10%) — Revenue changed 24.0% year on year, comfortably past the > 10% mark.
- Earnings growth: 68.2% (Strong, benchmark > 10%) — Earnings changed 68.2% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.43 (Watch, benchmark < 1) — At 1.43, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 26.0% (Strong, benchmark < 60%) — Pays out 26.0% of earnings as dividends, leaving room to keep paying.