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Caterpillar Inc CAT

Morningstar Rating
$365.63 −6.35 (1.71%)
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Company Report

Solid End Market Demand Leads Us to Believe 2024 Will Be a Solid Year for Caterpillar

We believe Caterpillar will continue to be the leader in the global heavy machinery market, providing customers an extensive product portfolio consisting of construction, mining, energy, and transportation products. For nearly a century, the company has been a trusted manufacturer of mission-critical heavy machinery, which has led to its position as one of the world’s most valuable brands. Caterpillar’s strong brand is underpinned by its high-quality, extremely reliable, and efficient products. Customers also value Caterpillar’s ability to lower the total cost of ownership.

Price vs Fair Value

CAT is trading at a 58% premium.
Price
$365.63
Fair Value
$463.00
Uncertainty
Medium
1-Star Price
$961.60
5-Star Price
$867.20
Economic Moat
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Capital Allocation
Dczhwqgl

Bulls Say, Bears Say

Bulls

Increased infrastructure spending in the U.S. and emerging markets will lead to more construction equipment purchases, substantially boosting Caterpillar's sales growth.

Bears

The fallout from the global health pandemic could stretch declines in nonresidential spending for multiple years, leading to pressure on Caterpillar’s sales and margin growth.

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News

Trading Information

Previous Close Price
$371.98
Day Range
$362.68372.84
52-Week Range
$204.04382.01
Bid/Ask
$365.30 / $365.87
Market Cap
$182.59 Bil
Volume/Avg
2.1 Mil / 2.4 Mil

Key Statistics

Price/Earnings (Normalized)
17.53
Price/Sales
2.85
Dividend Yield (Trailing)
1.37%
Dividend Yield (Forward)
1.40%
Total Yield
4.04%

Company Profile

Caterpillar is the premier manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world’s largest manufacturer of heavy equipment with over 13% market share in 2021. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Caterpillar Financial Services provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.
Sector
Industrials
Industry
Farm & Heavy Construction Machinery
Stock Style Box
Large Core
Total Number of Employees
121,173

Competitors

Valuation

Metric
CAT
DE
TEX
Price/Earnings (Normalized)
17.5311.989.07
Price/Book Value
9.535.192.55
Price/Sales
2.851.990.86
Price/Cash Flow
15.0010.077.49
Price/Earnings
CAT
DE
TEX

Financial Strength

Metric
CAT
DE
TEX
Quick Ratio
0.741.810.82
Current Ratio
1.352.052.01
Interest Coverage
25.575.5910.04
Quick Ratio
CAT
DE
TEX

Profitability

Metric
CAT
DE
TEX
Return on Assets (Normalized)
12.80%9.82%16.45%
Return on Equity (Normalized)
59.03%44.28%39.25%
Return on Invested Capital (Normalized)
19.53%14.47%28.05%
Return on Assets
CAT
DE
TEX
See how this stock stacks up to its competitors with Morningstar Investor

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