Caterpillar, Inc.(CAT) - Stock detail

Caterpillar, Inc.

US
CAT
Caterpillar Inc.(Listing date: 12/02/1929)

Caterpillar Inc. was originally established as Caterpillar Tractor Co. in California in 1925 and renamed Caterpillar Inc. in Delaware in 1986. The company had sales and revenues of $53.8 billion in 2019 and is a global leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It primarily conducts business through three main segments: Construction Industries, Resource Industries, and Energy & Transportation, and provides financing and related services through its Financial Products segment. The company is also a leading exporter in the United States, establishing long-term cooperative relationships with customers worldwide through its global network of independent dealers and direct sales of certain products.

AI Rating

Rating methodology
Latest close (chg%)731.97+1.36%
Buy price
705.00
Target price600.00
Sell price715.00
P/E TTM40.02
P/E28.85
Confidence85%
Risk score75/100
AI Summary
High valuation disconnect (P/E ~40) with fundamental deterioration (4 consecutive quarters of declining net income, margin compression), high debt ratio (78%), technical distribution patterns, and geopolitical risks support a bearish outlook. Historical volatility suggests using sell-stop orders below $720 support rather than market orders.

Alpha Score

0-10
  • Trend（Score 4/10）

    Caterpillar is experiencing a short-term corrective phase within a longer-term uptrend, presenting cautiously optimistic technical picture with oversold indicators but requiring strict risk management.

  • Valuation（Score 1/10）

    Caterpillar's valuation metrics indicate significant overvaluation with forward PE of 28.85, TTM PE of 40.02, price/book of 16.68, and price/sales of 5.05, all above historical averages and sector norms. Based on earnings fundamentals, fair value ranges from $280-$550, suggesting current price of $731.97 is substantially overvalued.

  • Financial strength（Score 4/10）
    Caterpillar's financial health shows mixed signals with adequate liquidity (current ratio 1.44), high leverage (78.38% debt-to-asset ratio), declining profitability metrics, and strong asset utilization (ROA: 9.53%) but requires careful monitoring during economic downturns.
  • Profitability（Score 3/10）
    Caterpillar shows exceptional ROE of 43.54% but declining profitability trends with gross margin dropping to 33.79% from 37.97% and net margin compressing to 13.14% from 16.65%. Quarterly results show consistent pressure with net income declining significantly across all quarters in 2025.
  • Sentiment（Score 7/10）
    Caterpillar's strong fundamentals and strategic positioning are offset by near-term geopolitical and valuation risks, suggesting accumulation on dips for long-term gains.
Latest price
$731.97+1.36%
Market cap341.38B
P/E TTM40.02
P/E28.85
Volume2.78M
Turnover2.04B