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 Value AnalystSell
Overall Rating3.7/10
Generated at:2026-06-11 17:41:38
Analysis based on 5 financial reports: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Stock price data as of 2026-06-11 close. Data includes company basic information, financial condition, profitability metrics, and valuation analysis.
Overview

Caterpillar, Inc. (CAT) is a leading global manufacturer of construction and mining equipment. The company shows strong recent quarterly profitability but faces challenges from high financial leverage and a cyclical business model. The stock is currently trading at a significant premium to fundamental valuation metrics, indicating overvaluation.

Valuation
1/10
Profitability
6/10
Financial health
4/10
Operation Advice
  • Based on fundamental analysis, the stock is significantly overvalued.
  • The recommendation is to SELL.
  • The current price of $897.63 is substantially above even optimistic fundamental price ranges of $616-$660.
  • Investors should consider exiting positions or avoiding new purchases until the price corrects to more reasonable valuation levels.

Valuation

P/E TTM
45.27
P/E LYR
28.85
P/B MRQ
22.88
P/S TTM
--
AI Analysis
  • Valuation metrics indicate the stock is trading at a significant premium. The forward P/E is 28.85, trailing P/E is 45.27, P/B ratio is 22.88, and P/S-TTM is 5.85, all elevated compared to historical norms. The current price is substantially above reasonable fundamental price ranges, indicating overvaluation.
  • The forward-looking (dynamic) PE is 28.85, while the trailing (TTM) PE is 45.27.
  • The TTM PE is very high, reflecting the market's premium pricing relative to past earnings.
  • The forward PE, while lower, still implies high growth expectations.
  • The P/B ratio is 22.88, which is extremely high relative to book value.
  • The P/S-TTM is 5.85, elevated compared to historical industrial norms.
  • A reasonable price range based on a normalized forward P/E of 20-25 yields $440 to $550.
  • An optimistic scenario applying a 28-30 forward P/E suggests a range of $616 to $660.
  • The current price of $897.63 is substantially above even the optimistic fundamental range.
  • The stock is overvalued based on traditional earnings-based metrics.
Valuation trend

Profitability

ROE TTM
45.62%
Net margin
14.63%
Gross margin
35.08%
Total revenue
17.41B
AI Analysis
  • Profitability shows strong recent quarterly performance with Q1 2026 revenue growth of 22.22% and net income growth of 27.26%, but full-year 2025 results showed slowing growth and declining net income. Return metrics are strong but amplified by high leverage.
  • Q1 2026 results were robust, with revenue growth of 22.22% YoY to $17.41B and net income growth of 27.26% YoY to $2.55B.
  • The net margin improved to 14.63%.
  • The full-year 2025 results showed revenue growth slowing to 4.29% and net income declining by -17.68%.
  • The strong Q1 2026 may represent a recovery or cyclical uptick.
  • The Trailing Twelve Months (TTM) Return on Equity (ROE) is exceptionally high at 45.62%.
  • The high ROE is significantly amplified by the high financial leverage (80.47% debt).
  • The TTM Return on Assets (ROA) of 9.84% provides a clearer picture of operational efficiency, which remains solid.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--21.92%32.29%43.54%45.62%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue14.25B30.82B48.46B67.59B17.41B

Financial health

Debt/Asset
80.47%
Current ratio
1.35
Quick ratio
0.81
Cash ratio
0.81
AI Analysis
  • Financial health shows adequate liquidity with a current ratio of 1.35, but a high debt-to-assets ratio of 80.47% indicates significant leverage and financial risk. The quick ratio of 0.81 suggests inventory-heavy current assets.
  • The current ratio of 1.35 indicates adequate short-term liquidity.
  • The quick ratio of 0.81 suggests a significant portion of current assets is tied up in inventory.
  • The high debt-to-assets ratio of 80.47% is a notable concern, indicating a highly leveraged capital structure.
  • The high leverage increases financial risk, especially in a rising interest rate environment or during an economic downturn.
  • The cyclical nature of the heavy machinery industry could be impacted by this financial risk.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset78.73%79.34%77.96%78.38%80.47%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.321.341.381.441.35