CAT

Caterpillar Inc.

Fundamental data last updated:August 10, 2026

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company profile

SECTOR

Industrials

industry

Agricultural - Machinery

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Caterpillar Inc., a global enterprise founded in 1925 and headquartered in Deerfield, Illinois (having previously operated as Caterpillar Tractor Co. until its rebranding in 1986), is a premier manufacturer and vendor of heavy construction and mining equipment, diesel and natural gas power units, and industrial gas turbines across the world. The company's extensive offerings are organized into several operational divisions: Construction Industries: This segment delivers a broad spectrum of machinery for construction projects, including asphalt pavers, versatile backhoe and skid steer loaders, various sizes of excavators (from compact to heavy-duty), compactors, road-building equipment like cold planers and motorgraders, pipelayers, site preparation tractors, telehandlers, and utility vehicles, alongside a range of wheel loaders and track-type equipment. Resource Industries: Dedicated to the mining sector, this division supplies powerful equipment such as electric rope and hydraulic shovels, draglines, rotary drills, specialized hard rock vehicles, and a diverse fleet of mining, off-highway, and articulated trucks. It also offers longwall miners, wheel dozers, fleet management systems, autonomous vehicle solutions, crucial machinery components, selected work tools, and comprehensive safety and performance solutions for mining operations. Energy & Transportation: This segment focuses on power generation and propulsion systems. It provides reciprocating engines, generator sets, integrated power solutions, industrial turbines and associated services, remanufactured engines and parts, centrifugal gas compressors, and diesel-electric locomotives with related components and services. These products serve critical sectors including marine, oil and gas, industrial applications, and electric power generation. Financial Products: This segment supports customers with a variety of financial services, such as operating and finance leases, installment sale agreements, working capital loans, and wholesale financing schemes. It also offers insurance and risk management products tailored for vehicles, power generation facilities, and marine vessels. All Other: This encompassing segment is responsible for manufacturing essential consumables and components like filters, fluids, undercarriage parts, and ground engaging tools.

 


VALUATION

P/E

47.72

Market Cap ($M USD)

$446.78B

Forward P/E

25.58

PEG

0.30

PRICE TO SALES

6.31

PRICE TO BOOK

24.09

EV / EBITDA

30.52

5-Year Average P/E

Free Cash Flow Yield

2.56%

DCF Value

$198.81

Graham Number

$135.70

Price to FCF

39.02

EV to FCF

42.43

Earnings Yield

2.10%

FCF Yield

2.56%

DIVIDEND

Yield

0.62%

Annual Payout

$6.04

Payout Ratio

29.49%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$20.33

Next Year EPS Growth Estimate

$37.92

Next Year Revenue Growth Estimate

$95.63B

Return on Equity (ROE)

47.51%

FREE CASH FLOW

Operating Margin

16.56%

Debt-to-Equity

2.03

Piotroski F-Score

8

Altman Z-Score

5.83

Return on Invested Capital (ROIC)

19.64%

Current Ratio

1.35

Quick Ratio

0.81

Net Debt to EBITDA

2.45

Interest Coverage

8.31

Gross Profit margin

32.52%

FCF PER SHARE

$24.71

REVENUE PER SHARE

$152.69

Gainseekers Quantitative Analysis

Summary

Caterpillar Inc. is trading at a staggering premium relative to its DCF value and Graham Number, suggesting a significant market mispricing. The Forward P/E of 28.08 indicates high growth expectations, yet the Earnings Yield of just 1.91% raises questions about its immediate return potential. Despite this, the Altman Z-score of 6.03 signals robust financial health, reducing bankruptcy risk. The market seems to be pricing in perfection, with the stock extended near its 52-week high, hinting at potential overvaluation.

AI Exposure / Tech Reliance

Operating in the Industrials sector, Caterpillar is well-positioned to leverage AI and modern technology to enhance its machinery and equipment offerings. The company's focus on innovation can drive efficiency and productivity in agricultural machinery. As AI continues to evolve, Caterpillar's ability to integrate these technologies will be crucial for maintaining its competitive edge.

The Bull Case

For a value or GARP investor, Caterpillar presents a compelling case with its impressive ROIC of 19.64%, indicating efficient capital use. The Piotroski F-Score of 8 suggests strong financial health and operational efficiency. Despite a modest FCF Yield of 2.33%, the company's operating margin of 16.56% showcases its pricing power and ability to generate cash. These metrics paint a picture of a company with solid fundamentals and potential for long-term growth.

The Bear Case

However, the stock's high valuation multiples, such as a Price/Book of 26.45 and Price/Sales of 6.93, are glaring red flags. These figures suggest the market may be overly optimistic about future growth. The technical overextension near its 52-week high further exacerbates concerns of a potential pullback. Additionally, a Net Debt to EBITDA ratio of 2.45 indicates a significant debt burden that could weigh on future profitability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$906.87

Institutional Ownership %

1-Year Beta

1.57

Insider Buying % (6 Mo)

Distance to 52-Week High

10.68%

Distance to 52-Week Low

59.63%

EARNINGS SURPRISE %

19.14%

50-DAY SMA

$916.33

200-DAY SMA

$699.43

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.