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AI Spotlight on CAT
Company Description
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.
Market Data
Last Price | 342.36 |
Change Percentage | 1.01% |
Open | 341 |
Previous Close | 338.92 |
Market Cap ( Millions) | 163625 |
Volume | 3322693 |
Year High | 418.5 |
Year Low | 307.05 |
M A 50 | 369.58 |
M A 200 | 361.86 |
Financial Ratios
FCF Yield | 5.39% |
Dividend Yield | 1.62% |
ROE | 58.61% |
Debt / Equity | 197.06% |
Net Debt / EBIDTA | 193.92% |
Price To Book | 8.5 |
Price Earnings Ratio | 15.36 |
Price To FCF | 18.55 |
Price To sales | 2.52 |
EV / EBITDA | 12.01 |
News
- Feb -23 - Caterpillar Stock: Buy, Sell, or Hold?
- Feb -21 - Grok 3 makes ideal stock portfolio for 2025
- Feb -14 - All-In: The 23-Stock Six-Figure Dividend Portfolio I'm Betting My Future On
- Feb -12 - Rebuilding Stronger: 3 Stocks Driving Infrastructure Recovery
- Feb -12 - Citigroup Analysts Are Betting Big on These 3 StocksβShould You?
- Feb -10 - Where I'd Put $10,000 Right Now - My Best Dividend Picks For Income And Growth
- Feb -07 - The Next Big Opportunity: My Favorite Dividend Stocks For The Shift Ahead
- Feb -05 - CAT Dips 8% Since Q4 Results: How Should Investors Play the Stock?
- Feb -05 - Nvidia, Caterpillar and other winners and losers from DeepSeek's emergence, according to JPMorgan
- Feb -04 - 4 Construction & Mining Equipment Stocks to Watch Amid Industry Woes
- Feb -03 - Why Caterpillar Stock Was Slipping Today
- Feb -03 - Trade Tracker: Joe Terranova's ETF sells Caterpillar and Uber
- Feb -03 - What's Next For CAT Stock After A Bleak Outlook?
- Jan -31 - Analysts Divided On Caterpillar's Outlook Amid Pricing Pullback And Market Volatility - Details
- Jan -31 - Caterpillar: Q4 Earnings Report Confirms Negative Macroeconomic Outlook, Indicating Margin Contraction
- Jan -30 - Dow Earnings: More on Caterpillar, Microsoft Results
- Jan -30 - Why Caterpillar Stock Slumped 5% Today
- Jan -30 - CAT Q4 Earnings Beat, Revenues Lag Estimates on Weak Volumes
- Jan -30 - Caterpillar Has Potential For Multiple Expansion Post Earnings, Goldman Sachs Says
- Jan -30 - Caterpillar Stock Slides After Revenue Misses Projections
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Construction Industries
Expected Growth : 3.5 %
What the company do ?
Caterpillar Inc.'s Construction Industries segment provides machinery and equipment for construction, infrastructure, and building construction industries.
Why we expect these perspectives ?
Caterpillar Inc.'s 3.5% growth in the Construction Industries segment is driven by increasing infrastructure investments, rising demand for residential and commercial construction, and growing adoption of technology-enabled equipment. Additionally, the company's focus on product innovation, expanded dealer networks, and strategic acquisitions are contributing to the segment's growth.
Segment nΒ°2 -> Energy & Transportation
Expected Growth : 2.8 %
What the company do ?
Energy & Transportation from Caterpillar Inc. provides power systems, engines, and transmissions for oil and gas, marine, and rail industries.
Why we expect these perspectives ?
Caterpillar's Energy & Transportation segment growth of 2.8% is driven by increasing demand for oil and gas equipment, rising global energy consumption, and growing investment in transportation infrastructure. Additionally, the segment benefits from the company's diversified product portfolio, including reciprocating engines, turbines, and locomotives, which cater to various industries.
Segment nΒ°3 -> Resource Industries
Expected Growth : 3.2 %
What the company do ?
Resource Industries from Caterpillar Inc. provides equipment and solutions for mining, quarry, and construction industries, enhancing productivity and efficiency.
Why we expect these perspectives ?
Caterpillar's Resource Industries segment growth of 3.2% is driven by increasing demand for mining equipment and services, particularly in copper and iron ore. Rising commodity prices, infrastructure development, and growing need for mineral resources in emerging markets also contribute to this growth.
Segment nΒ°4 -> Financial Products
Expected Growth : 2.5 %
What the company do ?
Caterpillar Inc.'s financial products offer financing solutions for customers to purchase or lease Cat equipment and services, providing flexible payment options and customized financing plans.
Why we expect these perspectives ?
Caterpillar Inc.'s financial products segment growth of 2.5% is driven by increasing demand for construction and mining equipment, expansion in emerging markets, and a growing need for equipment financing and insurance solutions. Additionally, the company's digitalization efforts and strategic partnerships are enhancing customer experience and driving revenue growth.
Segment nΒ°5 -> Corporate Items and Eliminations
Expected Growth : 0.5 %
What the company do ?
Corporate Items and Eliminations from Caterpillar Inc. refers to the consolidation of financial data from various subsidiaries, eliminating inter-company transactions and presenting a unified view of the company's performance.
Why we expect these perspectives ?
Caterpillar Inc.'s Corporate Items and Eliminations segment growth of 0.5% is driven by improved cost management, reduced restructuring expenses, and favorable foreign exchange impacts. Additionally, the company's focus on operational efficiency and disciplined capital allocation contribute to this growth.
Segment nΒ°6 -> All Other
Expected Growth : 2.2 %
What the company do ?
All Other from Caterpillar Inc. refers to the company's smaller, non-core businesses, including remanufacturing, components, and digital investments.
Why we expect these perspectives ?
Caterpillar's All Other segment growth of 2.2% is driven by increased demand for digital solutions, such as Cat Connect and Autonomous Haulage, as well as growth in Cat Reman and Cat Dealers' inventory investments. Additionally, the segment benefits from the company's focus on innovation and technology, including investments in electrification and alternative propulsion systems.
Caterpillar Inc. Products
Product Range | What is it ? |
---|---|
Construction Equipment | Caterpillar offers a wide range of construction equipment, including excavators, backhoes, skid-steer loaders, and more. |
Mining Equipment | Caterpillar provides mining equipment such as haul trucks, loaders, and drills for surface and underground mining operations. |
Industrial Engines | Caterpillar manufactures industrial engines for a variety of applications, including generators, pumps, and compressors. |
Gas Turbines | Caterpillar offers gas turbines for power generation, oil and gas, and industrial applications. |
Diesel-Electric Locomotives | Caterpillar provides diesel-electric locomotives for freight and passenger rail transportation. |
Forestry Equipment | Caterpillar offers forestry equipment, including harvesters, feller bunchers, and skidders, for logging and wood processing. |
Government and Defense Products | Caterpillar provides specialized equipment and solutions for government and defense applications. |
Caterpillar Inc.'s Porter Forces
Threat Of Substitutes
Caterpillar Inc. has a low threat of substitutes due to its unique product offerings and strong brand recognition in the heavy equipment and machinery industry.
Bargaining Power Of Customers
Caterpillar Inc. has a medium bargaining power of customers due to the presence of large and established customers in the construction and mining industries, but the company's strong brand and product offerings mitigate this power.
Bargaining Power Of Suppliers
Caterpillar Inc. has a low bargaining power of suppliers due to its large scale of operations and diversified supply chain, which reduces its dependence on individual suppliers.
Threat Of New Entrants
Caterpillar Inc. has a low threat of new entrants due to the high barriers to entry in the heavy equipment and machinery industry, including significant capital requirements and technological expertise.
Intensity Of Rivalry
Caterpillar Inc. operates in a highly competitive industry with established rivals such as John Deere and Komatsu, leading to a high intensity of rivalry.
Capital Structure
Value | |
---|---|
Debt Weight | 66.11% |
Debt Cost | 4.41% |
Equity Weight | 33.89% |
Equity Cost | 9.63% |
WACC | 6.18% |
Leverage | 195.06% |
Caterpillar Inc. : Quality Control
Caterpillar Inc. passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
PCAR | PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, β¦ |
PAYX | Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It β¦ |
DE | Deere & Company manufactures and distributes various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The β¦ |
REVG | REV Group, Inc. designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, Europe, Africa, and internationally. It operates through three segments: Fire β¦ |
TDG | TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, β¦ |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
π₯
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Paychex
A-Score
1-Year Total Return ->
π₯
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TransDigm Group
A-Score
1-Year Total Return ->
π₯
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PACCAR
A-Score
1-Year Total Return ->
4
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Deere
A-Score
1-Year Total Return ->
5
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REV Group
A-Score
1-Year Total Return ->
6
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