Stock Analysis
Caterpillar Inc.CAT
P/E 30.98×· 5Y range 11.87–52.21×· top 15% of history
Sector: Industrials · Industry: Construction Machinery & Equip
AnalystsBuy34 analystsP/E 31.0× sits at the 85th percentile of its 5.0978781656399725-year history.
Cash covers 28% of debt · FY 2025.
PMP Verdict
High quality, but expensive
Strengths
- Profitability85
- Quality82
Risks
- Valuation37
Excellent business. Weak entry price.
Bull Case
- ✓Altman Z 4.9 — safe-zone balance sheet
- ✓ROE 50.9% — efficient capital deployment
- ✓Interest coverage 24.6× — debt well covered
What's happening with CAT
Profile
Strong profitability and earnings quality; valuation lags behind.
How is each axis scored?
- Valuation37/100 · Weak
- P/E vs own history (85th pct)0/25
- FCF yield (3.2%)12/25
- P/S (4.5x)20/25
- EV/EBIT (27.6x)5/25
- Growth64/100 · Moderate
- Revenue CAGR (7.3%)12/25
- Net income CAGR (8.2%)12/25
- EPS CAGR 5Y (12.3%)20/25
- Fwd implied growth (19.1%)20/25
- Profitability85/100 · Strong
- ROIC (21.8%)20/25
- ROE (50.9%)25/25
- Net margin (14.5%)20/25
- Operating margin (17.5%)20/25
- Financial Health74/100 · Moderate
- Altman Z (4.86)25/25
- Current ratio (1.44)12/25
- Interest coverage (24.6x)25/25
- Net cash / debt (D/A 27%)12/25
- Quality82/100 · Strong
- Piotroski F (5/9)15/25
- Beneish M (-2.43)20/25
- FCF conversion (99%)22/25
- Margin stability (σ 4.9%)25/25
- Moat63/100 · Moderate
- ROIC >12% years (8/10 yrs)20/25
- Median gross margin (31.8%)13/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst -0.2%)5/25
Risk Flags
- ⚠P/E 31.0× at top 15% of 5-year history
About Caterpillar Inc.
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Show more
Its reporting segments are construction, resource, energy, and transportation. Market share approaches 20% across many products. Caterpillar operates a captive finance subsidiary to facilitate sales. The firm has a global reach that is approximately evenly balanced between the US and the rest of the world. Construction skews more domestic, while the other divisions are more geographically diversified. An independent network of over 150 dealers operates approximately 2,800 facilities, giving Caterpillar reach into about 190 countries for sales and support services.
Headquarters: IRVING, TX · Employees: 118,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
37DP/E (TTM)30.9xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 11.9x–52.2x · 85th pct
P/FCF37.3xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield3.2%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.9%–8.7% · 16th pct
P/S (TTM)4.49xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 1.5x–7.0x · 85th pct
EV/EBIT27.6xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 12.0x–44.9x · 85th pct
EV/Sales5.0xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E26.0xC
Grade C: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio15.73xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.47B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield0.84%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio25.9%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
85AROIC21.8%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE50.9%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA11.1%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin14.5%A
Grade A: HighNet Income / Revenue
Operating Margin17.5%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin34.3%C
Grade C: AverageGross Profit / Revenue
FCF Margin14.3%C
Grade C: AverageFCF / Revenue
True FCF Margin14.3%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
64BRevenue CAGR7.3%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR8.2%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)12.3%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth19.1%C
Grade C: MedAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-16.7%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue—
TTM stock-based comp / TTM Revenue
Financial Health
74B+Altman Z-Score4.86A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.44xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio0.77xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage24.6xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment2.5yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT2.0xC
Grade C: MedLeverage. <2x Low, >4x High
Debt/Equity1.70xC
Grade C: MedDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.28xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
82APiotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.43A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion98.7%A
Grade A: StrongFCF / Net Income
Margin Stability4.9%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue3.8%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.77xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
MacLennan David Filed | MacLennan David | Grant / award | +28 | |
GOOD LYNN J Filed | GOOD LYNN J | Grant / award | +30 | |
Kaiser Jason Filed | Kaiser Jason | Grant / award | +11 | |
Epley Kyle Joseph Filed | Epley Kyle Joseph | Grant / award | +7 | |
Epley Kyle Joseph Filed | Epley Kyle Joseph | Grant / award | +11 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Creed Joseph E Filed | Creed Joseph E | Grant / award | +19 | |
Creed Joseph E Filed | Creed Joseph E | Option exercise | -44403 | |
Creed Joseph E Filed | Creed Joseph E | SellOpen market sale | -4831 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
63BROIC >12% Years8/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)31.8%C
Grade C: ModerateMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor-0.2%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$23.59
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$14.57
Cash & short-term investments per share (Finnhub)
Book Value / Share$42.11
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$36.21B
Total debt obligations (short + long term)
Cash & Equiv.$9.98B
Cash and short-term investments
Net Debt$26.23B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$21.32B
Shareholders' equity (book value)
Asset / Liability1.28xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$335.33B
Current Market Capitalization
Beta1.59C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Caterpillar Inc. (CAT)
CAT is down 0.66% at the last close. Piotroski F-Score of 5/9 indicates mixed fundamentals for Caterpillar Inc.. Altman Z-Score of 4.86 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.43 suggests a low likelihood of earnings manipulation.
- Takes ~2.5 years to repay net debt from free cash flow.
- Caterpillar Inc. posted a net loss in 1 of 10 available completed fiscal years (2016–2025).
- Return on equity of 50.9% is well above the market average.
See how CAT ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all CAT moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 7 | Regular | 815.13 | -5.60% | -3.74 |
| Oct 7 | After-hours | 816.00 | -5.49% | -3.68 |
Frequently Asked Questions about CAT
What is the current Caterpillar Inc. (CAT) stock price?
CAT is trading at $730.76 at the last market close, down 0.66% on the session. PreMarketPrice tracks CAT pre-market, intraday and after-hours prices.
Is CAT stock a buy right now?
PreMarketPrice's quantitative model rates Caterpillar Inc.'s financial health at 74/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is CAT stock overvalued?
Caterpillar Inc. trades at a trailing P/E of 30.9 and our valuation score rates it 37/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Caterpillar Inc. report earnings?
No confirmed earnings date is currently scheduled for CAT. The Earnings section lists recent reports and updates as dates are announced.
What sector does Caterpillar Inc. operate in?
Caterpillar Inc. operates in the Industrials sector, within the Construction Machinery & Equip industry. The Related Stocks section lists sector peers for comparison.
What does Caterpillar Inc. do?
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
About Caterpillar Inc. (CAT) Stock
Caterpillar Inc. (CAT) is a US-listed stock operating in the Industrials sector, specifically the Construction Machinery & Equip industry. As of the latest update, Caterpillar Inc. is trading at $730.76, down 0.66% on the day with a market capitalization of $335.3 billion. The financial health score for CAT is 74/100, which indicates good financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for CAT stock.
CAT Stock Analysis & Key Metrics
On PreMarketPrice, you can track Caterpillar Inc. (CAT) across multiple dimensions:
- Pre-market price & movement: Real-time CAT stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for CAT with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Caterpillar Inc. across multiple reporting periods.
- Financial health score: A composite score of 74/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for CAT.
- Sector peers: Compare CAT against 5 other industrials stocks on key financial metrics.
Is CAT a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Caterpillar Inc. (CAT) as an investment. The financial health score of 74/100 suggests good financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Caterpillar Inc. (CAT) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.