A Business at a Glance
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CATERPILLAR INC
CAT
$419.7B
Mkt Cap
$888.73
-0.65%
CATERPILLAR INC (CAT) has a current P/E ratio of 47.2, compared to its historical median P/E of 16.2. The stock is currently considered Expensive based on its historical valuation range.
CATERPILLAR INC (CAT) has a 5-year average return on invested capital (ROIC) of 16.4%. This indicates strong capital allocation and a potential competitive advantage.
CATERPILLAR INC (CAT) has a market capitalization of $409.3B. It is classified as a mega-cap stock.
Yes, CATERPILLAR INC (CAT) pays a dividend with a trailing twelve-month yield of 0.68%. The company also returns capital through share buybacks, with a buyback yield of 1.60%.
Based on historical P/E analysis, CATERPILLAR INC (CAT) appears expensive. The current P/E of 47.2 is 191% above its historical median of 16.2. The estimated fair value CAGR (P/E method) is 17.7%.
CATERPILLAR INC (CAT) operates in the Construction Machinery & Equip industry, within the Industrials sector.
CATERPILLAR INC (CAT) reported annual revenue of $67.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives, with 2025 sales and revenues of $67.589 billion. The company operates through three primary reportable segments—Construction Industries, Resource Industries, and Power & Energy—plus a Financial Products segment, supported by one of the largest independent global dealer networks and financing services through Cat Financial. Construction Industries serves infrastructure and building construction markets with differentiated product offerings including track-type tractors, excavators, wheel loaders, and motor graders, with unit economics driven by customer preferences that vary by geography: developing economies prioritize purchase price while developed economies emphasize total cost of ownership and productivity. Resource Industries provides comprehensive solutions for mining and heavy construction, including electric rope shovels, large mining trucks, and autonomous hauling technology, with a competitive advantage rooted in integrated component design and innovative technologies that deliver lowest total cost of ownership. Power & Energy supplies reciprocating engines, generator sets, turbines, electrified powertrains, and diesel-electric locomotives across oil and gas, power generation, marine, rail, and industrial applications, with growing demand driven by data center expansion and energy infrastructure needs. Cat Financial operates as a wholly owned finance subsidiary providing retail and wholesale financing, leases, and revolving charge accounts to customers and dealers globally, competing in a highly competitive environment against commercial banks and manufacturer-backed finance subsidiaries. The company's business model combines capital-intensive manufacturing with recurring services revenues—totaling $24 billion in 2025—and asset-light financing operations, generating cash flow that supports shareholder returns and strategic capacity investments aligned with long-term customer demand visibility.
【Data center-driven power growth】 Management expects continued momentum across all three primary segments in 2026, with particular strength in Power & Energy driven by accelerating data center buildout for cloud computing and generative AI, requiring substantial reciprocating engine and turbine capacity. Construction Industries is anticipated to benefit from sustained infrastructure spending through IIJA funding and elevated data center construction investment, with North America remaining positive and emerging markets showing selective growth. Resource Industries is positioned for sales growth driven by rising copper and gold demand, positive heavy construction and quarry dynamics, and expected increases in rebuild activity as commodity prices remain above investment thresholds. Management is increasing large reciprocating engine capacity from 2x to nearly 3x 2024 levels to meet accelerating customer orders extending into 2028, with capital expenditures expected to average 4–5% of Machinery, Power & Energy sales through 2030 and positive cash payback anticipated by decade-end. The company anticipates low double-digit sales growth for full year 2026 and expects adjusted operating profit margin to remain near the bottom of the target range despite tariff headwinds, reflecting strategic investments in growth execution and ongoing tariff mitigation efforts.
| Metric | Target | Period |
|---|---|---|
| Sales and revenues | low double-digit growth | FY2026 |
| Sales and revenues | around the top of the 5%-7% long-term compound annual growth rate target | FY2026 |
| Compound annual growth rate for total enterprise sales and revenues | between 6% and 9% | 2024 to 2030 |
| Power generation sales | more than 3x sales by 2030 from a 2024 baseline | 2024 to 2030 |
| Capital expenditures | around $3.5 billion | FY2026 |
Sales and revenues (FY2026): “We now anticipate low double-digit growth for full year 2026 sales and revenues.”
Sales and revenues (FY2026): “Overall, we anticipate full year sales and revenues to grow around the top of the 5%-7% long-term compound annual growth rate target.”
Compound annual growth rate for total enterprise sales and revenues (2024 to 2030): “We now expect the compound annual growth rate for total enterprise sales and revenues to be between 6% and 9% from 2024 to 2030.”
Power generation sales (2024 to 2030): “The target for power generation sales has increased to more than 3x sales by 2030 from a 2024 baseline.”
Capital expenditures (FY2026): “Capital expenditures are expected to be around $3.5 billion, driven primarily by our capacity expansion plans.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q1 FY2025 Earnings Call, Q4 FY2024 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 70.8B | 67.6B | 64.8B | 67.1B | 59.4B | 51.0B |
| Net Income | 9.4B | 8.9B | 10.8B | 10.3B | 6.7B | 6.5B |
| EPS | $20.26 | $18.81 | $22.05 | $20.12 | $12.64 | $11.83 |
| Free Cash Flow | 9.5B | 7.5B | 8.8B | 9.8B | 5.2B | 4.7B |
| ROIC | 9.4% | 15.7% | 19.9% | 20.5% | 12.7% | 13.2% |
| Gross Margin | - | 33.5% | 37.1% | 35.2% | 29.7% | 30.3% |
| Debt/Equity | -31.08 | 1.73 | 1.66 | 1.52 | 2.03 | 1.94 |
| Dividends/Share | $6.03 | $5.94 | $5.53 | $5.10 | $4.71 | $4.36 |
| Operating Income | 11.7B | 11.2B | 13.1B | 13.0B | 7.9B | 6.9B |
| Operating Margin | 16.5% | 16.5% | 20.2% | 19.3% | 13.3% | 13.5% |
| ROE | 36269.2% | 43.5% | 55.3% | 58.4% | 41.4% | 40.7% |
| Shares Outstanding | 461M | 472M | 489M | 514M | 530M | 549M |
CATERPILLAR INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
CATERPILLAR INC trades at 47.2x trailing earnings, compared to its 15-year median P/E of 16.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 46.4x vs a median of 20.5x. The company's 5-year average ROIC is 16.4% with a gross margin of 33.2%. Total shareholder yield (dividends + buybacks) is 2.3%. At current prices, the estimated annualized return to fair value is +22.7%.
CATERPILLAR INC (CAT) has a net profit margin of 13.1%. This is a healthy margin.
CATERPILLAR INC (CAT) generated $7.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CATERPILLAR INC (CAT) has a debt-to-equity ratio of 1.73. This indicates higher leverage, which may increase financial risk.
CATERPILLAR INC (CAT) reported earnings per share (EPS) of $18.81 in its most recent fiscal year.
CATERPILLAR INC (CAT) has a return on equity (ROE) of 43.5%. This indicates the company generates strong returns for shareholders.
CATERPILLAR INC (CAT) has a 5-year average gross margin of 33.2%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for CATERPILLAR INC (CAT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CATERPILLAR INC (CAT) has a book value per share of $45.14, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued momentum across all three primary segments in 2026, with particular strength in Power & Energy driven by accelerating data center buildout for cloud computing and generative AI, requiring substantial reciprocating engine and turbine capacity. Construction Industries is anticipated to benefit from sustained infrastructure spending through IIJA funding and elevated data center construction investment, with North America remaining positive and emerging markets showing selective growth. Resource Industries is positioned for sales growth driven by rising copper and gold demand, positive heavy construction and quarry dynamics, and expected increases in rebuild activity as commodity prices remain above investment thresholds. Management is increasing large reciprocating engine capacity from 2x to nearly 3x 2024 levels to meet accelerating customer orders extending into 2028, with capital expenditures expected to average 4–5% of Machinery, Power & Energy sales through 2030 and positive cash payback anticipated by decade-end. The company anticipates low double-digit sales growth for full year 2026 and expects adjusted operating profit margin to remain near the bottom of the target range despite tariff headwinds, reflecting strategic investments in growth execution and ongoing tariff mitigation efforts.
Based on recent SEC filings and earnings calls, CATERPILLAR INC (CAT) has provided the following forward guidance: Sales and revenues: low double-digit growth (FY2026); Sales and revenues: around the top of the 5%-7% long-term compound annual growth rate target (FY2026); Compound annual growth rate for total enterprise sales and revenues: between 6% and 9% (2024 to 2030); Power generation sales: more than 3x sales by 2030 from a 2024 baseline (2024 to 2030); Capital expenditures: around $3.5 billion (FY2026).