The market sent Caterpillar’s shares down approximately 6% in intraday trading on Oct. 31, following third-quarter earnings. The key headline coming out of earnings was the company’s declining order backlog. Caterpillar reported orders decreased $2.6 billion in the third quarter versus last quarter.
Increased infrastructure spending in the U.S. and emerging markets will lead to more construction equipment purchases, substantially boosting Caterpillar's sales growth.
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.
|
Metric
|
CAT
|
DE
|
TEX
|
|---|---|---|---|
Price/Earnings (Normalized) | 12.47 | 10.65 | 6.94 |
Price/Book Value | 6.15 | 4.76 | 2.18 |
Price/Sales | 1.92 | 1.75 | 0.65 |
Price/Cash Flow | 10.28 | 8.86 | 5.70 |
|
Metric
|
CAT
|
DE
|
TEX
|
|---|---|---|---|
Quick Ratio | 0.76 | 1.74 | 0.94 |
Current Ratio | 1.45 | 1.98 | 2.11 |
Interest Coverage | 23.92 | 7.35 | 10.47 |
|
Metric
|
CAT
|
DE
|
TEX
|
|---|---|---|---|
Return on Assets (Normalized) | 12.24% | 10.63% | 15.65% |
Return on Equity (Normalized) | 58.01% | 47.11% | 39.49% |
Return on Invested Capital (Normalized) | 18.87% | 15.03% | 26.75% |
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Ticker
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Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
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