About Caterpillar, Inc.
Caterpillar, Inc. (CAT) is a Industrials company in the Construction Machinery & Equip industry with a market capitalisation of $360B. The stock trades at 38.47x trailing earnings and yields 0.8%.
- Sector
- Industrials
- Industry
- Construction Machinery & Equip
- Market cap
- $360B
- P/E ratio
- 38.47
- EPS (TTM)
- $18.81
- Revenue (TTM)
- $67.6B
- Free cash flow
- $8.9B
- Profit margin
- 13.1%
- Dividend yield
- 0.8%
- Shares outstanding
- 459.7M
Financial health: Fair6.5/10
5 strengths, 2 concerns. Weakest points: debt to equity, earnings growth.
- 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: 55.9% (Strong, benchmark > 15%) — Earns 55.9% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 32.5% (Watch, benchmark > 40%) — Keeps 32.5% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 13.1% (Strong, benchmark > 10%) — Turns 13.1% 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: 4.3% (Watch, benchmark > 10%) — Revenue changed 4.3% year on year, short of the > 10% mark.
- Earnings growth: -17.7% (Concern, benchmark > 10%) — Earnings changed -17.7% year on year, well short of the > 10% mark.
- Payout ratio: 30.9% (Strong, benchmark < 60%) — Pays out 30.9% of earnings as dividends, leaving room to keep paying.