Caterpillar Inc
Exchange: NYSESector: IndustrialsIndustry: Farm & Heavy Construction Machinery
For more than a century, Caterpillar has built a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company's primary business segments: Power & Energy, Construction Industries and Resource Industries are solving customers' toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team.
Current Price
$872.56
+1.44%GoodMoat Value
$488.94
44.0% overvaluedProfile
Valuation (TTM)
Market Cap$408.78B
P/E43.35
EV$361.73B
P/B19.18
Shares Out468.48M
P/Sales5.78
Revenue$70.75B
EV/EBITDA29.59
Caterpillar Inc (CAT) Stock Analysis
GoodMoat Analysis
Caterpillar is a high-quality industrial leader with a strong competitive moat, but it appears significantly overvalued based on the provided data and GoodMoat's target price. The stock's current price of $719.04 is 47% above the $488.94 target, indicating a negative margin of safety.
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Caterpillar Inc. is a global leader in manufacturing construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and locomotives. Applying the GoodMoat framework, the company likely possesses a durable moat, scoring well on criteria like Brand & Culture, Scale Privilege in its global dealer network, and Switching Costs due to the mission-critical nature of its equipment and high customer loyalty. Its financial quality is strong, with an impressive ROE of 41.7% and solid revenue growth of 18.0% YoY. However, the valuation assessment presents a major hurdle. The current P/E of 37.9x is high for a cyclical industrial, and the Free Cash Flow Yield of 2.4% is low. Most critically, the GoodMoat target price of $488.94 suggests the stock is trading at a significant premium to its estimated intrinsic value. Following the Decision Framework, while the business likely passes the Moat & Quality Gate, it fails the Valuation & Risk Gate. The negative margin of safety of approximately -47% (calculated from the target price) places it firmly in the 'Unfavourable' valuation band. For a value investor, this indicates the company's underlying strength is not currently available at an attractive price, making further investigation primarily an exercise in understanding why the market premium exists rather than identifying a margin of safety opportunity.
Market Cap$408.78B
Current Price$872.56
P/E Ratio43.35
Forward P/E—
PEG Ratio1.43
EPS$18.81
Book Value$45.50
P/B Ratio19.18
CAT Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 7.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 33.4B
Revenue
53.8B
FY19
41.7B
FY20
51.0B
FY21
59.4B
FY22
67.1B
FY23
64.8B
FY24
67.6B
FY25
Net Income
6.1B
FY19
3.0B
FY20
6.5B
FY21
6.7B
FY22
10.3B
FY23
10.8B
FY24
8.9B
FY25
CAT 52-Week Range
$338.83
$926.93
50-Day MA: $791.28200-Day MA: $619.48
Did you know?
CAT's revenue grew at a 3.9% CAGR over the last 6 years.
Caterpillar Inc (CAT) Financial Summary
Caterpillar Inc (CAT) is a Industrials company in the Farm & Heavy Construction Machinery industry, listed on NYSE. The stock currently trades at $872.56 with a market capitalization of $408.78B.
Key valuation metrics include a P/E ratio of 43.35, price-to-book ratio of 19.18, and EPS of $18.81. The company reports a profit margin of 13.3% and return on equity of 44.2%.
CAT Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $408.78B |
| P/E Ratio | 43.35 |
| EPS | $18.81 |
| P/B Ratio | 19.18 |
| P/S Ratio | 5.78 |
| EV/EBITDA | 29.59 |
| Dividend Yield | 0.67% |
| Profit Margin | 13.3% |
| Return on Equity | 44.2% |
| Debt/Equity | 2.03 |
CAT Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $53.80B | $6.09B |
| FY20 | $41.75B | $3.00B |
| FY21 | $50.97B | $6.49B |
| FY22 | $59.43B | $6.71B |
| FY23 | $67.06B | $10.34B |
| FY24 | $64.81B | $10.79B |
| FY25 | $67.59B | $8.88B |
Caterpillar Inc (CAT) Valuation
Based on GoodMoat's DCF model, Caterpillar Inc has a fair value estimate of $488.94. At the current price of $872.56, the stock appears 78.5% overvalued relative to our intrinsic value estimate.
CAT Quality Indicators
Caterpillar Inc maintains a profit margin of 13.3% and an operating margin of 16.5%. Return on equity stands at 44.2%. The current ratio is 1.44. Debt-to-equity ratio is 2.03.
About Caterpillar Inc
For more than a century, Caterpillar has built a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company's primary business segments: Power & Energy, Construction Industries and Resource Industries are solving customers' toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team.
CAT Free Cash Flow
Caterpillar Inc generated $8.16B in trailing twelve-month free cash flow, representing an FCF yield of 2.00%. This low FCF yield may reflect heavy reinvestment or growth spending.
CAT Shares Outstanding
Caterpillar Inc has 0.47 billion shares outstanding at a share price of $872.56, giving it a market capitalization of $408.78B.
CAT Recent Insider Trades
Recent insider transactions at Caterpillar Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Johnson Denise C (Group President) | SELL | 1,787 | $1.62M |
| Johnson Denise C (Group President) | SELL | 3,546 | $3.22M |
| Schaupp William E (Chief Accounting Officer) | SELL | 360 | $326160.00 |