ScoreWhy is Caterpillar, Inc. ?
1
High Management Efficiency with a high ROCE of 20.00%
2
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 20.00%
3
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
4
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%
5
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 ReportHow 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.
173.99%
2.86
31.35%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.12%
EBIT Growth (5y)
18.42%
EBIT to Interest (avg)
21.89
Debt to EBITDA (avg)
2.71
Net Debt to Equity (avg)
1.94
Sales to Capital Employed (avg)
1.13
Tax Ratio
20.26%
Dividend Payout Ratio
31.58%
Pledged Shares
0
Institutional Holding
74.33%
ROCE (avg)
20.00%
ROE (avg)
45.44%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
55
Industry P/E
Price to Book Value
23.97
EV to EBIT
46.95
EV to EBITDA
39.29
EV to Capital Employed
9.93
EV to Sales
8.06
PEG Ratio
NA
Dividend Yield
0.56%
ROCE (Latest)
21.16%
ROE (Latest)
43.25%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 3.44
INVENTORY TURNOVER RATIO(HY)
Highest at 2.57 times
OPERATING PROFIT(Q)
Highest at USD 3,721 MM
EPS(Q)
Highest at USD 5.47
-7What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 2,818.94
RAW MATERIAL COST(Y)
Grown by 5.17% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 208.96 %
INTEREST(Q)
Highest at USD 132 MM
Here's what is working for Caterpillar, Inc.
Dividend per share
Highest at USD 3.44 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Profit
Highest at USD 3,721 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
EPS
Highest at USD 5.47
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 2.57 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Caterpillar, Inc.
Interest
At USD 132 MM has Grown at 11.86%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 2,818.94
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 132 MM
in the last five periods and Increased by 11.86% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 208.96 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 5.17% (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
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