Caterpillar Inc.
Caterpillar Inc. Fundamental Analysis
Caterpillar Inc. (CATR.PA) shows moderate financial fundamentals with a PE ratio of 17.08, profit margin of 16.65%, and ROE of 55.36%. The company generates $64.8B in annual revenue with weak year-over-year growth of -3.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CATR.PA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCATR.PA demonstrates superior asset utilization.
Valuation Score
ModerateCATR.PA shows balanced valuation metrics.
Growth Score
WeakCATR.PA faces weak or negative growth trends.
Financial Health Score
ExcellentCATR.PA maintains a strong and stable balance sheet.
Profitability Score
ExcellentCATR.PA achieves industry-leading margins.
Key Financial Metrics
Is CATR.PA Expensive or Cheap?
P/E Ratio
CATR.PA trades at 17.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CATR.PA's PEG of 6.43 indicates potential overvaluation.
Price to Book
The market values Caterpillar Inc. at 9.46 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.58 times EBITDA. This signals the market has high growth expectations.
How Well Does CATR.PA Make Money?
Net Profit Margin
For every $100 in sales, Caterpillar Inc. keeps $16.65 as profit after all expenses.
Operating Margin
Core operations generate 20.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $55.36 in profit for every $100 of shareholder equity.
ROA
Caterpillar Inc. generates $12.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Caterpillar Inc. produces operating cash flow of $12.03B, showing steady but balanced cash generation.
Free Cash Flow
Caterpillar Inc. generates strong free cash flow of $8.81B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $18.02 in free cash annually.
FCF Yield
CATR.PA converts 4.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.55
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How CATR.PA Stacks Against Its Sector Peers
| Metric | CATR.PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.08 | 25.96 | Better (Cheaper) |
| ROE | 55.36% | 1263.00% | Weak |
| Net Margin | 16.65% | -41828.00% (disorted) | Strong |
| Debt/Equity | 0.47 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.42 | 10.05 | Neutral |
| ROA | 12.30% | -1497917.00% (disorted) | Strong |
CATR.PA outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Caterpillar Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.00%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
104.38%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
100.91%
Industry Style: Cyclical, Value, Infrastructure
High Growth