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 AnalystHold
Overall Rating3/10
Generated at:2026-04-17 17:42:41
Analysis based on real financial data from 5 consecutive quarterly reports ending 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Market price data as of 2026-04-17 close. Data completeness is good, covering key financial statements for fundamental analysis.
Overview

Caterpillar, Inc. (CAT) is a global leader in construction and mining equipment, operating in a cyclical industry influenced by global economic activity. The company shows strong brand power and market position but faces challenges including declining profitability, high financial leverage, and a rich stock valuation trading near recent highs.

Valuation
2/10
Profitability
3/10
Financial health
4/10
Operation Advice
  • Existing shareholders could maintain positions due to the company's strong market position, but the risk/reward profile at the current price level is not favorable for new money.
  • New investors should wait for a more attractive entry point, a pullback from the recent high, or clearer signs of margin re-expansion and debt reduction before considering a purchase.

Valuation

P/E TTM
40.02
P/E LYR
28.85
P/B MRQ
16.68
P/S TTM
--
AI Analysis
  • 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.
  • The current market price is $794.65 (as of 2026-04-17 close).
  • The trailing twelve-month (TTM) P/E is 40.02. The forward (dynamic) P/E is 28.85. Both are elevated.
  • The P/B ratio is 16.68, which is extremely high.
  • The TTM P/S ratio is 5.47, which is also on the higher end.
  • Based on the provided 60-day trading data, the stock has traded between a low of $626.62 and a high of $801.77.
  • The current price of $794.65 is very close to the recent 60-day high, placing it in the upper echelon of its recent trading range.
  • Using the FY 2025 diluted EPS of $18.81, a conservative P/E of 20 implies a price of ~$376, a moderate P/E of 25 implies ~$470, and the current forward P/E of 28.85 implies ~$543.
  • The market price of $794.65 far exceeds these basic EPS-derived values, indicating it is pricing in significant earnings growth expectations.
  • At the current level, the stock is trading at the very top of any reasonable near-term valuation model, making further multiple expansion challenging without stellar earnings beats.
Valuation trend

Profitability

ROE TTM
43.54%
Net margin
13.14%
Gross margin
33.79%
Total revenue
67.59B
AI Analysis
  • 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.
  • The Return on Equity (ROE) of 43.54% (TTM) is exceptionally high.
  • The Return on Assets (ROA) is 9.53% (TTM), which is significantly lower than ROE, indicating the high ROE is largely a function of high financial leverage.
  • The net margin for FY 2025 was 13.14%.
  • Year-over-year (YoY) growth from the latest annual report (2025-12-31 vs. 2024-12-31) shows Revenue grew by 4.29% to $67.59B.
  • Gross profit declined by -7.20%.
  • Net income attributable to shareholders fell sharply by -17.68% to $8.88B.
  • This contraction in profitability is consistent across recent quarterly reports, indicating margin pressure.
  • The diluted EPS for FY 2025 was $18.81, down from $22.05 in FY 2024.
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--10.67%21.92%32.29%43.54%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue64.81B14.25B30.82B48.46B67.59B

Financial health

Debt/Asset
78.38%
Current ratio
1.44
Quick ratio
0.94
Cash ratio
0.94
AI Analysis
  • 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.
  • The current ratio of 1.44 and the quick ratio of 0.94 indicate that the company has adequate, though not exceptionally strong, short-term liquidity to cover its immediate obligations.
  • The debt-to-asset ratio of 78.38% is notably high.
  • This indicates a highly leveraged capital structure, which can amplify returns but also increases financial risk, especially in a downturn or rising interest rate environment.
  • This high leverage is a critical point for risk assessment.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset77.79%78.73%79.34%77.96%78.38%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.421.321.341.381.44