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. Its reporting segments are construction, resource, energy, and transportation.
It is a $368B industrial company. Revenue grew 18.4% over the last year, it keeps 15¢ of every dollar of sales as profit, and its net debt equals ~2.5 years of free cash flow. It trades at 33.9× earnings — in the most expensive third of its own history.
- Website
- caterpillar.com
- Location
- Irving, TX
- Employees
- 118 000
- Sector
- Industrials
- Founded
- 1909
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability and quality; Valuation lags behind.
Valuation30
- P/E vs own history87th pct · 0/25
- FCF yield2.9% · 5/25
- P/S4.9x · 20/25
- EV/EBITDA26.3x · 5/25
Growth74
- Revenue CAGR7.3% · 12/25
- Net income CAGR8.2% · 12/25
- EPS CAGR ~5Y28.0% · 25/25
- Fwd implied growth30.7% · 25/25
Profitability85
- ROIC18.7% · 20/25
- ROE54.2% · 25/25
- Net margin14.5% · 20/25
- Operating margin17.5% · 20/25
Health67
- Altman Z4.42 · 25/25
- Current ratio1.37 · 12/25
- Interest coverage8.3x · 18/25
- Net cash / debtD/A 27% · 12/25
Quality77
- Piotroski F5/9 · 15/25
- Beneish M-2.43 · 20/25
- FCF conversion99% · 22/25
- Margin stabilityσ 5.1% · 20/25
Moat63
- ROIC >12% years8/10 yrs · 20/25
- Median gross margin31.8% · 13/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst -0.2% · 5/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2024FinancialBest year on record$10.8B net income
- FY2018FinancialRevenue crossed $50B$54.7B for the year
- FY2017FinancialTurned profitable$754M net income after a loss year
- FY2016FinancialRevenue already above $10B$38.5B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2007MilestoneAs ultra-low-sulfur diesel became required in North America, Caterpillar updated the C7 to use common rail…
- 1998AcquisitionCaterpillar purchased Perkins Engines of Peterborough, England, a maker of small diesel and gasoline engines
- 1997ProductCaterpillar 3116 engine was used up until 1997, when Caterpillar introduced the inline 6 cylinder 7.2 litre…
- 1986MilestoneThe company reorganized itself as a Delaware corporation under the current name, Caterpillar Inc
- 1950ProductDuring the postwar construction boom, the company grew at a rapid pace
- 1930AcquisitionThe new company was headquartered in San Leandro until 1930, when under the terms of the merger, it was moved to Peoria
- 1925AcquisitionCaterpillar Inc. traces its origins to the 1925 merger of the Holt Manufacturing Company and the C
- 1916ProductThe first tanks used in WWI were manufactured by William Foster & Co., also in Lincolnshire, England
- Oct 25, 1909FoundedPliny Holt purchased the factory, and immediately began operations with 12 employees
- 1904ProductContemporaneously, Richard Hornsby & Sons in Grantham, Lincolnshire, England, developed a steel plate-tracked vehicle
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Revenue growing 18.4% year over year
- Interest covered 8.3× by operating earnings
- High returns on invested capital (ROIC 18.7%)
- Altman Z-Score 4.42 — low bankruptcy-risk zone
Watch-outs
- Loss-making in 1 of the recent years
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+18.4% YoY
- Profitable — makes more than it spends$10.8B TTM
- Profit growing — earnings are higher than last year+14.2% YoY
- Generates cash — cash left after running and investing$10.7B TTM
- Debt under control — could handle its obligations~2.5y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$368B market cap
- Not printing shares — share count not ballooning — you keep your slice-13.9% shares over ~5y
- Proven track record — years of profitability behind it9/10 profitable years
- Financially stable — balance sheet not near distressAltman Z 4.4 — safe
- Pays a dividend — returns cash to shareholdersyield 0.76%
- Valuation not extreme — price not wildly above earningsP/E 33.9
Peer comparisonCaterpillar Inc. vs 6 largest industrials peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| CAT this company | $368.0B | 33.9 | +18.4% | 14.5% | Solid |
| LRCX Lam Research Corp | $399.2B | 54.9 | +26.0% | 31.3% | Strong |
| RTX RTX Corporation | $251.3B | 32.4 | +11.8% | 8.3% | Strained |
| DE Deere & Company | $167.7B | 34.4 | +8.3% | 10.2% | Solid |
| ETN Eaton Corporation, plc | $167.2B | 43.6 | +15.5% | 12.8% | Mixed |
| UNP Union Pacific Corp. | $166.8B | 22.6 | +4.2% | 28.8% | Strained |
| BA Boeing Company | $150.6B | 61.8 | +24.8% | 2.6% | Strained |
Head-to-head: CAT vs LRCX · CAT vs RTX · CAT vs DE
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/CAT
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of CAT on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $800.47 · market cap $368B.