Caterpillar Z Score
CAT  Stock  USD 196.84 2.84 1.46% 
Caterpillar  Z Score 
Caterpillar Z Score Analysis
Caterpillar's ZScore is a simple linear, multifactor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..Current Caterpillar Z Score  1.2 
Most of Caterpillar's fundamental indicators, such as Z Score, 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.
 
 
 
 

Caterpillar Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for Caterpillar is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Caterpillar's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Caterpillar's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Caterpillar's interrelated accounts and indicators.
Click cells to compare fundamentals
To calculate ZScore one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. ZScore can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with ZScores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a socalled 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition 
In accordance with the company's disclosures, Caterpillar has a Z Score of 1.2. This is 70.52% lower than that of the Industrials sector and significantly higher than that of the Farm & Heavy Construction Machinery industry. The z score for all United States stocks is 86.24% higher than that of the company.
Caterpillar Z Score 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 Z Score 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 z score 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.
2017  2018  2019  2020  2021  2022 (projected)  
Net Income Per Employee  7.66 K  59.11 K  59.56 K  30.73 K  60.25 K  65.01 K  
Revenue Per Employee  462.01 K  526.17 K  525.9 K  427.89 K  473.27 K  446.13 K  
Average Assets  77.9 B  78.43 B  78.59 B  76.88 B  81.5 B  76.81 B  
Earnings Before Interest Taxes and Depreciation Amortization EBITDA  7.5 B  11.02 B  10.84 B  6.95 B  11.07 B  10.8 B  
Earnings Before Interest Taxes and Depreciation Amortization USD  7.5 B  11.02 B  10.84 B  6.95 B  11.07 B  10.8 B  
Earnings before Tax  4.09 B  7.84 B  7.84 B  4 B  8.23 B  7.42 B  
Average Equity  14.3 B  15.05 B  14.99 B  14.6 B  16.68 B  15.46 B  
Enterprise Value  120.08 B  102.75 B  111.62 B  127.69 B  139.17 B  132.18 B  
Free Cash Flow  4.53 B  4.58 B  5.4 B  4.98 B  5.99 B  5.84 B  
Invested Capital  68.34 B  70.87 B  73.44 B  72.72 B  74.11 B  70.3 B  
Invested Capital Average  69.58 B  70.5 B  72.7 B  72.73 B  73.9 B  70.24 B  
Market Capitalization  93.75 B  74.98 B  81.62 B  98.88 B  111.83 B  100.19 B  
Tangible Asset Value  68.65 B  70.39 B  70.69 B  70.62 B  75.43 B  69.86 B  
Working Capital  9.31 B  10.38 B  12.57 B  13.75 B  13.61 B  13.32 B 
Caterpillar ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower socialengagement 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
Return On Equity  38.55 %  
Return On Asset  6.30 %  
Profit Margin  12.33 %  
Operating Margin  19.85 %  
Current Valuation  136.88 B  
Shares Outstanding  540.94 M  
Shares Owned by Insiders  0.23 %  
Shares Owned by Institutions  70.60 %  
Number of Shares Shorted  5.75 M  
Price to Earning  20.75 X  
Price to Book  6.30 X  
Price to Sales  1.99 X  
Revenue  52.67 B  
Gross Profit  13.19 B  
EBITDA  10.46 B  
Net Income  6.5 B  
Cash and Equivalents  6.47 B  
Cash per Share  12.14 X  
Total Debt  37.58 B  
Debt to Equity  2.20 %  
Current Ratio  1.44 X  
Book Value Per Share  30.81 X  
Cash Flow from Operations  5.58 B  
Short Ratio  1.59 X  
Earnings Per Share  9.35 X  
Price to Earnings To Growth  1.27 X  
Number of Employees  107.7 K  
Beta  0.99  
Market Capitalization  104.94 B  
Total Asset  78.5 B  
Retained Earnings  34.41 B  
Working Capital  8.12 B  
Current Asset  34.42 B  
Current Liabilities  26.3 B  
Z Score  1.2  
Five Year Return  2.42 %  
Last Dividend Paid  4.8 
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.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 decisionmaking process regarding taking a position in Caterpillar. The overall investor sentiment generally increases the direction of a stock movement in a oneyear 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
0.79  DE  Deere Company  Earnings Call This Week  PairCorr 
The ability to find closely correlated positions to Caterpillar could be a great tool in your taxloss harvesting strategies, allowing investors a quick way to find a similarenough 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 riskadjusted return on your portfolios.Continue to Caterpillar Piotroski F Score and Caterpillar Valuation 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and riskadjusted market performance.
Complementary Tools for Caterpillar Stock analysis
When running Caterpillar price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.
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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.