Stock · CAT · Industrials
United States · Large Cap · listed since 1962 · Revenue 12 mo. $74.7B
Price as of 11/06/2026
Summary
42.1 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €6.7B (2025), it supports €74.3B. The remaining €159.6B of the market value assume it grows 16.0% a year for 10 years and not at all afterwards.
Required FCF growth per year
16.0%
no growth afterwards
Price to operating cash flow 19.0×, above its usual range.
Middle half of 20 quarters: 13.3× to 17.4×, median 14.9×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
AI summary of the 2025 annual report
A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.
Form 10-K, fiscal year ended 12/31/2025, filed 02/13/2026. Open the report at the SEC
Construction Industries offers machines, related parts, services and worktools.
The Construction Industries product portfolio includes the following machines and related parts, services and worktoolsBesides equipment, Resource Industries also sells technology products and services. These cover fleet management, equipment analytics, autonomous machine capabilities, safety services and mining performance solutions.
In addition to equipment, Resource Industries sells technology products and services to provide customers fleet management, equipment management analytics, autonomous machine capabilities, safety services and mining performance solutions.Cat Financial is fully owned by Caterpillar Inc. It offers retail and wholesale financing to customers and dealers worldwide for Caterpillar products and services.
Cat Financial is a wholly owned finance subsidiary of Caterpillar Inc., and it provides retail and wholesale financing alternatives to customers and dealers around the world for Caterpillar products and servicesCat Financial offers loans that let customers buy equipment and pay over time in structured payments.
Cat Financial offers loans that allow customers to purchase equipment with structured payments over time.Machines are mainly distributed through a worldwide dealer network, with 41 dealers in the United States and 109 outside it.
We distribute our machines principally through a worldwide organization of dealers (dealer network), 41 located in the United States and 109 located outside the United StatesThe Power & Energy segment supports customers in oil and gas, power generation, marine, rail and industrial applications.
Our Power & Energy segment supports customers in oil and gas, power generation, marine, rail and industrial applications, including Caterpillar machines.Most Construction Industries machine sales are made in heavy and general construction, rental, quarry and aggregates, and mining.
The majority of machine sales in this segment are made in the heavy and general construction, rental, quarry and aggregates and mining industries.Cat Financial also lends to certain dealers for working capital and other purposes.
Cat Financial makes loans to certain dealers for working capital and other purposes.Competition in all markets is based on product performance, customer service, quality and price.
In all markets, we compete on the basis of product performance, customer service, quality and price.Competition for construction machinery features some global competitors and many regional and specialized local ones.
The competitive environment for construction machinery is characterized by some global competitors and many regional and specialized local competitors.Global competitors in surface equipment include Deere Construction & Forestry, Epiroc AB, Hitachi Construction Machinery Co., Ltd., Komatsu Ltd., Liebherr-International AG, Sandvik AB and Volvo Construction Equipment.
Our global surface competitors include Deere Construction & Forestry (part of Deere & Company), Epiroc AB, Hitachi Construction Machinery Co., Ltd., Komatsu Ltd., Liebherr-International AG, Sandvik AB, and Volvo Construction Equipment.Cat Financial carries credit risk on its customers.
Inherent in the operation of Cat Financial is the credit risk associated with its customers.The company's business is affected by how its dealers and OEM customers manage inventory and source products.
Our business is subject to the inventory management decisions and sourcing practices of our dealers and our OEM customers.A number of credit facilities and debt securities contain certain restrictive covenants that apply to the company and certain subsidiaries, including Cat Financial.
The agreements relating to a number of the facilities and the debt securities contain certain restrictive covenants applicable to us and certain subsidiaries, including Cat Financial.Because a significant number of Cat Financial loans have fixed interest rates, its results are subject to interest rate changes.
Because a significant number of the loans made by Cat Financial are made utilizing fixed interest rates, its business results are subject to fluctuations in interest rates.A downgrade of the company's credit rating by any major rating agency could raise borrowing costs and could hurt the liquidity and capital market access of Caterpillar and Cat Financial.
A downgrade of our credit rating by any of the major credit rating agencies could result in increased borrowing costs and could adversely affect Caterpillar’s and Cat Financial’s liquidity, competitive position and access to the capital marketsSince the last quarter
Q1 → Q2 2026
4 more unchanged: EBIT margin, FCF margin, Net debt, Shares outstanding
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 41.62% | 13.10% | Rank 93 |
| Return on capital (Greenblatt) | 36.08% | 19.33% | Rank 70 |
| EBIT margin | 16.59% | 11.28% | Rank 71 |
| FCF margin | 11.03% | 8.50% | Rank 65 |
| Gross margin | 32.34% | 28.98% | Rank 59 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 4.29% | 5.15% | Rank 46 |
| Earnings growth, 3 years per year | 14.38% | 8.01% | Rank 65 |
| Earnings growth, 5 years per year | 28.19% | 12.89% | Rank 84 |
| Sustainable growth (ROE × retained earnings) | 6.34% | 4.02% | Rank 67 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 3.39% | 4.42% | Rank 33 |
| FCF yield | 2.86% | 3.98% | Rank 32 |
| EV/saleslower is better | 4.35 | 2.08 | Rank 24 |
| EV/EBITlower is better | 26.22 | 19.47 | Rank 27 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | −11.56% | −0.01% | Rank 30 |
| Share price, 6 months | −37.27% | −1.43% | Rank 6 |
| Share price, 3 months | −28.54% | 0.53% | Rank 4 |
| Distance from 52-week high | −47.54% | −16.36% | Rank 6 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | 1.98% | 1.39% | Rank 45 |
| Change in share countlower is better | −4.17% | −0.44% | Rank 91 |
| Dividend streak in years | 12 | 5 | Rank 82 |
| Price reaction to results, market-adjusted | −9.20% | 0.27% | Rank 5 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 21.62% | 39.65% | Rank 15 |
| Net debt/EBITDAlower is better | 2.25 | 1.38 | Rank 29 |
| Debt to equitylower is better | 2.03 | 0.61 | Rank 10 |
| Volatility, 1 yearlower is better | 40.20% | 32.95% | Rank 25 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF, $B | Shares | Net debt, $B |
|---|---|---|---|---|---|
| 2016 | 38.5 | 3.0% | 2.7 | 584M | 29.6 |
| 2017 | 45.5 | 9.8% | 3.4 | 599M | 26.6 |
| 2018 | 54.7 | 15.2% | 3.6 | 599M | 28.7 |
| 2019 | 53.8 | 15.4% | 4.2 | 568M | 37.7 |
| 2020 | 41.7 | 10.9% | 4.2 | 549M | 27.8 |
| 2021 | 51.0 | 13.5% | 4.7 | 549M | 28.5 |
| 2022 | 59.4 | 13.3% | 5.2 | 530M | 30.0 |
| 2023 | 67.1 | 19.3% | 9.8 | 514M | 30.9 |
| 2024 | 64.8 | 20.2% | 8.8 | 489M | 31.5 |
| 2025 | 67.6 | 16.6% | 7.5 | 469M | 33.4 |
4 of 7 StockScorer Score rules met · How the score is built
Caterpillar Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.
Caterpillar Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
4 of 7 rules met
6 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
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Selected fundamental metrics for Caterpillar Inc.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 29.5 | 22.5 |
| P/B ratio | 12.3 | 2.9 |
| Return on equity (ROE) | 41.6% | 13.1% |
| Equity ratio | 21.6% | 39.7% |
| Debt-to-equity (D/E) | 2.03 | 0.61 |
| Dividend yield | 1.1% | 2.0% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| CAT | Caterpillar Incthis page | |
| DE | Deere & Company | Low1.8 |
| VOLV-B.ST | AB Volvo (publ) | locked |
| PCAR | PACCAR Inc | Low3.6 |
| 6301.T | Komatsu Ltd. | locked |
| DTG.DE | Daimler Truck Holding AG | locked |
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