CAT GoodMoat Verdict
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Caterpillar Inc
Exchange: NYSESector: IndustrialsIndustry: Farm & Heavy Construction Machinery
For more than a century, Caterpillar has helped build 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.
Did you know?
Profit margin stands at 13.1%.
Current Price
$717.22
-1.79%GoodMoat Value
$488.94
31.8% overvaluedProfile
Valuation (TTM)
Market Cap$335.64B
P/E37.78
EV$361.73B
P/B15.74
Shares Out467.98M
P/Sales4.97
Revenue$67.59B
EV/EBITDA25.60
Caterpillar Inc (CAT) Quality Analysis
GoodMoat Analysis
Caterpillar exhibits exceptionally high returns on capital and strong profitability, but its quality profile is mixed for a value investor. The business benefits from a powerful competitive position, yet its financial structure carries significant leverage.
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Caterpillar's profitability is robust, with an operating margin of 16.5% and a return on equity of 41.7%, which far exceeds the framework's high-quality threshold of 15-20%. This indicates highly efficient use of shareholder capital. However, the quality assessment is nuanced. The company's debt/equity ratio of 2.03 is high, indicating a leveraged balance sheet that fails the framework's preference for a net cash position and low debt. The free cash flow yield of 2.4% is below the desired 10-15% FCF margin threshold, suggesting cash conversion relative to its market cap is modest. Revenue growth of 18% YoY is strong. Caterpillar's competitive position, assessed through the moat lens, is likely anchored in scale privilege in global machinery, strategic partnerships with large dealers, and a powerful brand, though it faces cyclical risks. The high ROE is amplified by its leverage, which is a key factor for investors to monitor closely.
CAT Profitability
Profitability trend analysis coming soon
CAT Growth
Growth trend analysis coming soon
CAT Financial Health
Financial health indicators coming soon
CAT Quality & Fundamental Analysis
Caterpillar Inc (CAT) is a Industrials company in the Farm & Heavy Construction Machinery industry, listed on NYSE. This quality analysis page evaluates Caterpillar Inc's financial health using the Piotroski F-Score methodology, profitability ratios, growth trajectory, and balance sheet strength.
Caterpillar Inc has a Piotroski F-Score of N/A out of 9, measuring profitability, leverage, and operating efficiency. The company operates with a profit margin of 13.14% and a return on equity (ROE) of 41.67%. Return on assets (ROA) stands at 9.01%.
The debt-to-equity ratio is 2.03, with a current ratio of 1.44. Operating margin is 16.50%.
GoodMoat's quality analysis uses AI-powered insights to evaluate whether Caterpillar Inc is a fundamentally sound investment. The GoodMoat Verdict synthesizes profitability, growth, and financial health scores into a clear investment quality rating. Use these metrics alongside valuation tools like the DCF calculator and fair value models to make informed investment decisions.