# Caterpillar Inc. (CAT) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Machinery. Price $813.94, market value $374.1 billion.

## Valuation
- **P/E (trailing): 35.1×** (5-yr avg 18.9×, 3-yr avg 20.2×). Caterpillar Inc. trades at 35.1× trailing earnings, well above its own five-year average of 18.9×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 25.1×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 5.0×**. Each dollar of revenue is priced at 5.0×.
- **Price / book: 19.3×**. The shares trade at 19.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 25.9×**. Enterprise value is 25.9× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 2.9%** (5-yr avg 5.6%). Free cash flow equals 2.9% of the market value, below its five-year average of 5.6%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.9%**. The inverse of the P/E: 2.9% of the price is earned each year.

## Profitability
- **Operating margin: 17.5%**. 17.5% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 13.1%**. 13.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 41.7%**. 41.7% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 21.8%**. Return on all capital, debt included, is 21.8%: comfortably above what that capital costs.
- **Return on assets: 11.0%**. Each dollar of assets produces 11.0% of profit.

## Growth
- **Revenue growth (1 yr): 4.3%** (3-yr 4.4%/yr, 5-yr 10.1%/yr). Revenue grew 4.3% over the last year, against 10.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -14.7%** (3-yr 14.2%/yr, 5-yr 28.1%/yr). Earnings per share fell 14.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 11.3%/yr**. Free cash flow has compounded at 11.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.70**. Debt is 1.70 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.7×**. It would take 1.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 4.27**. A Z-score of 4.27 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.80%** ($6.16 per share, trailing). Caterpillar Inc. yields 0.80%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 31%** (26% of free cash flow). 31% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 12**. 12 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 7.2%/yr** (1-yr 7.7%). The dividend has grown 7.2% a year over five years.

## Analyst view
- **Analyst consensus: buy** (26 analysts). 26 analysts cover Caterpillar Inc.; the consensus is buy, with an average price target of $975.61 (+20% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 95.4%** (YTD 42.9%, 3-mo -9.8%). The shares are up 95.4% over twelve months including dividends.
- **From 52-week high: -24.2%** (95.5% above the low). Trading 24% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 45**. An RSI of 45 is neutral.
- **Beta (1 yr): 1.71** (volatility 40%). Beta of 1.71 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CAT · Page: https://foliofundamentals.com/stocks/cat

Not investment advice.