Obermatt

Caterpillar

NYQ:CAT · US1491231015
MachineryLarge

360

22
EV / EBIT5
Price / Owner Earnings3
Owner Earnings Yield14
Dividend Yield63
Price/Sales15
EV / Gross Profit4
Price/Book3
Return on Capital81
Cash Return on Capital62
Return on Equity98
EBIT Margin87
Gross Profitability69
Cash Conversion31
Accruals21
Owner Earnings Margin77
Sales growth62
Profit Growth100
Long-Term EPS Growth62
Owner Earnings Growth24
Reinvestment53
Price momentum97
Debt load5
Refinancing21
Debt Payback21
Liquidity84
Analyst ratings47
Opinion Changes50
Price Target Upside12
Market mood83
Value Creation14/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Caterpillar generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUSA
IndustryMachinery
SizeLarge
TypePublic Company
ExchangeNYSE
Founded1925
Employees45,072
ISINUS1491231015
Last UpdateApr 2, 2026
Themes
Consumer LendingFleet ManagementMining TechnologyFreight ServiceMining Equipment ProvidersIndustrial AutomationEmployee BenefitsForestryConstructionMachinery ManufacturingManufacturingMechanical Engineering

Description

Caterpillar Inc. (Caterpillar) operates as a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives worldwide. Categories of Business Organization Mach…

Analysis

Hope premium

Caterpillar Inc. is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium. Worth noting: the cash the business generates has lagged behind what the income statement shows.

On valuation, the picture is expensive. The owner-earnings multiple stands at 56.8×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 20% a year, against analyst forecasts of 17%. The price, in other words, assumes less than the experts do.

Growth is solid; the safety picture is stretched. The company scores 14/20 on our value-creation score: strong value creator.

Flags to be aware of: The financial cushion is thinner than comfortable. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
33
2023202420252026

All-time high

58

Jan 2023

All-time low

4

Jan 2025

Average rank

33

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
15
29
30
45
Price/Earnings
12
56
63
65
Price/Book
3
1
1
1
Dividend Yield
63
80
85
86
Value (overall)
14
29
35
46

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →