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 Rating5.3/10
Generated at:2026-06-03 17:40:51
Analysis based on real financial data from 5 consecutive quarterly reports: 2026-03-31 (Q1 2026), 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Stock price as of 2026-06-03 close.
Overview

Caterpillar, Inc. (CAT) is a global leader in heavy machinery manufacturing, showing a strong cyclical recovery in Q1 2026 with double-digit revenue and earnings growth. However, the stock trades at a significant premium based on traditional valuation metrics and carries high financial leverage, making the current risk/reward profile unfavorable for new purchases.

Valuation
3/10
Profitability
8/10
Financial health
5/10
Operation Advice
  • Existing shareholders may consider holding to benefit from the ongoing recovery cycle.
  • New capital should wait for a more attractive entry point, ideally near the calculated fundamental target price of $800 or within the reasonable price range of $750-$850.

Valuation

P/E TTM
45.27
P/E LYR
28.85
P/B MRQ
22.88
P/S TTM
--
AI Analysis
  • The stock appears to be trading at a significant premium based on traditional valuation metrics (high P/B, P/E TTM, P/S), though a rough PEG ratio suggests fair valuation relative to its recent growth rate. A fundamental target price of $800 is established, below the current market price.
  • The Forward P/E (Dynamic) is 28.85, while the Trailing Twelve Months (TTM) P/E is 45.27.
  • The Price-to-Book (P/B) ratio is 22.88, an extremely high multiple.
  • The Price-to-Sales (P/S) ratio is 6.03 (TTM), elevated compared to peers.
  • A rough PEG ratio, using Forward P/E and Q1 2026 earnings growth, is approximately 1.06, considered fairly valued relative to growth.
  • The recent 60-day trading range is approximately $664.57 to $936.71, with the current price near the top.
  • Based on fundamental assessment, the stock appears to be trading at a premium.
  • A reasonable price range is considered to be $750 - $850.
  • The Fundamental Target Price is $800.
Valuation trend

Profitability

ROE TTM
45.62%
Net margin
14.63%
Gross margin
35.08%
Total revenue
17.41B
AI Analysis
  • Q1 2026 results show a significant positive inflection point with robust revenue and earnings growth, reversing previous declines. Margins remain healthy, suggesting a potential cyclical recovery.
  • Q1 2026 revenue was $17.41B, representing a robust 22.22% year-over-year increase.
  • Net income for Q1 2026 was $2.55B, a strong 27.26% year-over-year increase.
  • The Gross Margin for Q1 2026 was 35.08%, slightly compressed compared to Q1 2025 but improved from the full year 2025.
  • The Net Margin for Q1 2026 was 14.63%, indicating healthy bottom-line conversion.
  • The Q1 2026 results suggest a potential cyclical recovery or strong demand cycle, reversing the previous year's downtrend.
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
  • The company shows strong profitability metrics (ROE, ROA) but has a highly leveraged capital structure and liquidity metrics that indicate reliance on inventory.
  • The Current Ratio of 1.35 indicates sufficient current assets to cover short-term liabilities.
  • The Quick Ratio of 0.81 is below 1.0, suggesting a reliance on inventory to meet immediate obligations.
  • The Debt-to-Asset Ratio of 80.47% is notably high, indicating a highly leveraged capital structure.
  • The Return on Equity (ROE) of 45.62% (TTM) is exceptional.
  • The Return on Assets (ROA) of 9.84% (TTM) is solid.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset78.73%79.34%77.96%78.38%80.47%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.321.341.381.441.35