CAT

Caterpillar Inc.

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Industrials

industry

Agricultural - Machinery

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/04/2026

Business Summary

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact track and multi-terrain loaders, excavators, motorgraders, pipelayers, road reclaimers, site prep tractors, skid steer loaders, telehandlers, and utility vehicles; mini, small, medium, and large excavators; compact, small, and medium wheel loaders; track-type tractors and loaders; and wheel excavators. The Resource Industries segment provides electric rope shovels, draglines, hydraulic shovels, rotary drills, hard rock vehicles, track-type tractors, mining trucks, longwall miners, wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, fleet management, landfill compactors, soil compactors, machinery components, autonomous ready vehicles and solutions, select work tools, and safety services and mining performance solutions. The Energy & Transportation segment offers reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services, remanufactured reciprocating engines and components, centrifugal gas compressors, diesel-electric locomotives and components, and other rail-related products and services for marine, oil and gas, industrial, and electric power generation sectors. The company's Financial Products segment provides operating and finance leases, installment sale contracts, working capital loans, and wholesale financing plans; and insurance and risk management products for vehicles, power generation facilities, and marine vessels. The All Other operating segment manufactures filters and fluids, undercarriage, ground engaging tools, etc. The company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. The company was founded in 1925 and is headquartered in Deerfield, Illinois.

 


VALUATION

P/E

44.63

Market Cap ($M USD)

$417.84B

Forward P/E

23.63

PEG

0.27

PRICE TO SALES

5.91

PRICE TO BOOK

22.53

EV / EBITDA

29.84

5-Year Average P/E

Free Cash Flow Yield

2.74%

DCF Value

$198.26

Graham Number

$135.70

Price to FCF

36.49

EV to FCF

39.90

Earnings Yield

2.24%

FCF Yield

2.74%

DIVIDEND

Yield

0.67%

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

$38.38

Next Year Revenue Growth Estimate

$8.97T

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

5.57

Return on Invested Capital (ROIC)

19.64%

Current Ratio

1.35

Quick Ratio

0.81

Net Debt to EBITDA

2.55

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 the market is pricing in perfection. The Forward P/E of 23.38 indicates expectations of significant earnings growth, yet the Earnings Yield of just 2.26% raises questions about its current valuation appeal. With an Altman Z-score of 5.60, the company is financially robust, signaling low bankruptcy risk. However, the stock’s price appears extended, trading well above its intrinsic value, which could be a red flag for value investors.

AI Exposure / Tech Reliance

In the agricultural machinery sector, Caterpillar is well-positioned to leverage AI and modern tech advancements. The integration of AI in machinery can enhance efficiency and reduce operational costs, providing a competitive edge. As the industry evolves, Caterpillar's ability to adapt will be crucial for maintaining its market leadership.

The Bull Case

For GARP investors, Caterpillar offers compelling strengths. A robust ROIC of 19.64% highlights its efficient capital allocation, while a Piotroski F-Score of 8 suggests strong financial health. The company's operating margin of 16.56% and a solid free cash flow per share indicate pricing power and operational efficiency. These metrics underscore Caterpillar's ability to generate and reinvest cash effectively, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, Caterpillar's valuation metrics raise concerns. The Price/Book ratio of 22.29 and Price/Sales of 5.90 suggest the stock is significantly overvalued. Its FCF Yield of 2.74% is underwhelming, especially when juxtaposed with its high Price to FCF ratio of 36.47. Trading near its 52-week high, the stock appears technically overextended, posing a risk for investors wary of buying at the peak.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$867.33

Institutional Ownership %

1-Year Beta

1.63

Insider Buying % (6 Mo)

Distance to 52-Week High

2.67%

Distance to 52-Week Low

62.93%

EARNINGS SURPRISE %

19.14%

50-DAY SMA

$764.25

200-DAY SMA

$603.09

⚠️ 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.