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%)794.65+2.85%
Buy price
755.00
Target price810.00
Sell price780.00
P/E TTM40.02
P/E28.85
Confidence70%
Risk score60/100
AI Summary
The committee acknowledges strong bullish momentum and a strategic narrative shift toward electrification/AI, but finds a decisive Buy invalidated by severe margin compression, extreme valuation, and overbought technicals. A Sell is premature due to the intact uptrend. Therefore, Hold is an active strategy: maintain existing positions with tight risk controls ($780 trailing stop) and consider partial profits near $815-$825, but do not deploy new capital at current levels.

Alpha Score

0-10
  • Trend（Score 4/10）

    Caterpillar (CAT) exhibits a strong medium-term bullish uptrend but is overextended in the short-term with multiple overbought signals, suggesting a high probability of near-term consolidation or pullback.

  • Valuation（Score 2/10）

    Caterpillar's stock appears richly valued based on traditional metrics, trading near its recent 60-day high. Valuation multiples such as P/E (40.02 TTM, 28.85 forward) and P/B (16.68) are elevated, suggesting the market is pricing in significant future earnings growth. The current price exceeds basic EPS-derived valuation models, indicating it is at the top of any reasonable near-term valuation range.

  • Financial strength（Score 4/10）
    The company's financial health shows adequate short-term liquidity but significant long-term leverage. The debt-to-asset ratio of 78.38% is notably high, indicating a highly leveraged capital structure that increases financial risk.
  • Profitability（Score 3/10）
    Caterpillar's profitability metrics show a mixed picture with an exceptionally high Return on Equity (43.54% TTM) but a concerning trend of declining year-over-year profitability. Net income fell sharply by -17.68% in FY 2025, indicating margin pressure despite modest revenue growth.
  • Sentiment（Score 8/10）
    Caterpillar's news analysis reveals overwhelmingly positive sentiment driven by raised analyst price targets, strong industrial demand, and strategic AI/electrification acquisitions, supporting a bullish outlook despite acknowledged cyclical risks.
Latest price
$794.65+2.85%
Market cap369.74B
P/E TTM40.02
P/E28.85
Volume2.8M
Turnover2.22B