Caterpillar, Inc. (CAT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

AGCO Corp.

Cummins, Inc.

The Toro Co.

BorgWarner, Inc.

SiteOne Landscape Supply, Inc.

Westinghouse Air Brake Technologies Corp.

BWX Technologies, Inc.

Caterpillar, Inc.

Deere & Co.

PACCAR, Inc.

CNH Industrial NV

Why is Caterpillar, Inc. ?

High Management Efficiency with a high ROCE of 20.00%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 20.00%

Negative results in Jun 25

NET PROFIT(HY) At USD 4,330.48 MM has Grown at -24.01%
RAW MATERIAL COST(Y) Grown by 12.1% (YoY)
CASH AND EQV(HY) Lowest at USD 9,004 MM

With ROCE of 23.60%, it has a expensive valuation with a 5.58 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 60.88%, its profits have fallen by -10.4%

Market Beating performance in long term as well as near term

Along with generating 60.88% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Caterpillar, Inc. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Caterpillar, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Caterpillar, Inc.

-100.0%

2.86

31.35%

S&P 500

15.4%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.31%

EBIT Growth (5y)

13.09%

EBIT to Interest (avg)

21.89

Debt to EBITDA (avg)

2.71

Net Debt to Equity (avg)

1.94

Sales to Capital Employed (avg)

1.14

Tax Ratio

20.26%

Dividend Payout Ratio

25.08%

Pledged Shares

Institutional Holding

70.91%

ROCE (avg)

20.00%

ROE (avg)

45.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

14.47

EV to EBIT

23.66

EV to EBITDA

20.17

EV to Capital Employed

5.58

EV to Sales

4.69

PEG Ratio

Dividend Yield

1.08%

ROCE (Latest)

23.60%

ROE (Latest)

56.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 3.22

-7What is not working for the Company

NET PROFIT(HY)

At USD 4,330.48 MM has Grown at -24.01%

RAW MATERIAL COST(Y)

Grown by 12.1% (YoY

CASH AND EQV(HY)

Lowest at USD 9,004 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.32 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.22 times

OPERATING PROFIT MARGIN(Q)

Lowest at 20.96 %

Here's what is working for Caterpillar, Inc.

Dividend per share

Highest at USD 3.22 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for Caterpillar, Inc.

Net Profit

At USD 4,330.48 MM has Grown at -24.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Operating Profit Margin

Lowest at 20.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at USD 9,004 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 12.1% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales