Caterpillar Fundamentals

CAT
 Stock
  

USD 196.84  2.84  1.46%   

Caterpillar fundamentals help investors to digest information that contributes to Caterpillar's financial success or failures. It also enables traders to predict the movement of Caterpillar Stock. The fundamental analysis module provides a way to measure Caterpillar's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Caterpillar stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
Caterpillar Direct Expenses is comparatively stable at the moment as compared to the past year. Caterpillar reported Direct Expenses of 35.51 Billion in 2021. Interest Expense is likely to gain to about 529.6 M in 2022, whereas Earning Before Interest and Taxes EBIT is likely to drop slightly above 7.9 B in 2022.

Caterpillar Shares Owned by Insiders Analysis

Caterpillar's Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.
Insiders Shares 
 = 
Executives Shares 
Employees 
More About Shares Owned by Insiders | All Equity Analysis

Current Caterpillar Shares Owned by Insiders

    
  0.23 %  
Most of Caterpillar's fundamental indicators, such as Shares Owned by Insiders, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Caterpillar is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
Compare to competition

Based on the latest financial disclosure, 0.23% of Caterpillar are shares owned by insiders. This is 98.6% lower than that of the Industrials sector and significantly higher than that of the Farm & Heavy Construction Machinery industry. The shares owned by insiders for all United States stocks is 97.72% higher than that of the company.

Caterpillar Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Caterpillar's current stock value. Our valuation model uses many indicators to compare Caterpillar value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Caterpillar competition to find correlations between indicators driving Caterpillar's intrinsic value. More Info.
Caterpillar is number one stock in number of employees category among related companies. It is number one stock in beta category among related companies . The ratio of Number of Employees to Beta for Caterpillar is about  108,788 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Caterpillar by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Caterpillar's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Caterpillar's earnings, one of the primary drivers of an investment's value.

Caterpillar Working Capital Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Caterpillar's direct or indirect competition against its Working Capital to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Caterpillar could also be used in its relative valuation, which is a method of valuing Caterpillar by comparing valuation metrics of similar companies.
Caterpillar is currently under evaluation in working capital category among related companies.

Caterpillar Current Valuation Drivers

We derive many important indicators used in calculating different scores of Caterpillar from analyzing Caterpillar's financial statements. These drivers represent accounts that assess Caterpillar's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Caterpillar's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee7.66 K59.11 K59.56 K30.73 K60.25 K65.01 K
Revenue Per Employee462.01 K526.17 K525.9 K427.89 K473.27 K446.13 K
Average Assets77.9 B78.43 B78.59 B76.88 B81.5 B76.81 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA7.5 B11.02 B10.84 B6.95 B11.07 B10.8 B
Earnings Before Interest Taxes and Depreciation Amortization USD7.5 B11.02 B10.84 B6.95 B11.07 B10.8 B
Earnings before Tax4.09 B7.84 B7.84 B4 B8.23 B7.42 B
Average Equity14.3 B15.05 B14.99 B14.6 B16.68 B15.46 B
Enterprise Value120.08 B102.75 B111.62 B127.69 B139.17 B132.18 B
Free Cash Flow4.53 B4.58 B5.4 B4.98 B5.99 B5.84 B
Invested Capital68.34 B70.87 B73.44 B72.72 B74.11 B70.3 B
Invested Capital Average69.58 B70.5 B72.7 B72.73 B73.9 B70.24 B
Market Capitalization93.75 B74.98 B81.62 B98.88 B111.83 B100.19 B
Tangible Asset Value68.65 B70.39 B70.69 B70.62 B75.43 B69.86 B
Working Capital9.31 B10.38 B12.57 B13.75 B13.61 B13.32 B

Caterpillar ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Caterpillar's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Caterpillar's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Caterpillar Fundamentals

About Caterpillar Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Caterpillar's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Caterpillar using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Caterpillar based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Cost of Revenue36 B34.6 B
Revenues51 B48.6 B
Revenue to Assets 0.62  0.69 
Revenue Per Employee473.3 K446.1 K
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. The company was founded in 1925 and is headquartered in Deerfield, Illinois. Caterpillar operates under Farm Heavy Construction Machinery classification in the United States and is traded on New York Stock Exchange. It employs 107700 people.

Caterpillar Investors Sentiment

The influence of Caterpillar's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Caterpillar. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Caterpillar's public news can be used to forecast risks associated with investment in Caterpillar. The trend in average sentiment can be used to explain how an investor holding Caterpillar can time the market purely based on public headlines and social activities around Caterpillar. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Caterpillar's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Caterpillar's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Caterpillar's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Caterpillar.

Caterpillar Implied Volatility

    
  34.58  
Caterpillar's implied volatility exposes the market's sentiment of Caterpillar stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Caterpillar's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Caterpillar stock will not fluctuate a lot when Caterpillar's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Caterpillar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Caterpillar's short interest history, or implied volatility extrapolated from Caterpillar options trading.

Pair Trading with Caterpillar

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Caterpillar position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Caterpillar will appreciate offsetting losses from the drop in the long position's value.

Moving together with Caterpillar

0.79DEDeere Company Earnings Call  This WeekPairCorr
The ability to find closely correlated positions to Caterpillar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Caterpillar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Caterpillar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Caterpillar to buy it.
The correlation of Caterpillar is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Caterpillar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Caterpillar moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Caterpillar can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Caterpillar Piotroski F Score and Caterpillar Altman Z Score analysis. Note that the Caterpillar information on this page should be used as a complementary analysis to other Caterpillar's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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Is Caterpillar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Caterpillar. If investors know Caterpillar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Caterpillar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.22
Market Capitalization
103.9 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0636
Return On Equity
0.41
The market value of Caterpillar is measured differently than its book value, which is the value of Caterpillar that is recorded on the company's balance sheet. Investors also form their own opinion of Caterpillar's value that differs from its market value or its book value, called intrinsic value, which is Caterpillar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Caterpillar's market value can be influenced by many factors that don't directly affect Caterpillar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Caterpillar's value and its price as these two are different measures arrived at by different means. Investors typically determine Caterpillar value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Caterpillar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.