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Caterpillar

SWX:CAT
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CAT
SWX
$80B
Market Cap
  1. Home
  2. CH
  3. Capital Goods
Company description

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The last earnings update was 18 days ago. More info.


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CAT Share Price and Events
7 Day Returns
0%
SWX:CAT
-0.3%
CH Machinery
-0%
CH Market
1 Year Returns
13.2%
SWX:CAT
14.4%
CH Machinery
13.3%
CH Market
CAT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Caterpillar (CAT) 0% 13.2% 24.8% 13.2% 55.7% 43.8%
CH Machinery -0.3% 7.6% 15.7% 14.4% 26.5% 41.5%
CH Market -0% 3.2% 4.8% 13.3% 21.9% 13%
1 Year Return vs Industry and Market
  • CAT underperformed the Machinery industry which returned 14.4% over the past year.
  • CAT matched the Switzerland Market (13.3%) over the past year.
Price Volatility
CAT
Industry
5yr Volatility vs Market

Value

 Is Caterpillar undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Caterpillar to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Caterpillar.

SWX:CAT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year CH Government Bond Rate 3.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SWX:CAT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate 3.3%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.078 (1 + (1- 21%) (48.07%))
1.327
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (1.327 * 5.96%)
11.18%

Discounted Cash Flow Calculation for SWX:CAT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Caterpillar is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SWX:CAT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.18%)
2020 6,412.50 Analyst x10 5,767.51
2021 6,739.17 Analyst x6 5,451.65
2022 6,873.00 Analyst x1 5,000.67
2023 7,536.00 Analyst x1 4,931.55
2024 7,878.52 Est @ 4.55% 4,637.12
2025 8,206.58 Est @ 4.16% 4,344.37
2026 8,526.42 Est @ 3.9% 4,059.68
2027 8,842.80 Est @ 3.71% 3,786.83
2028 9,159.37 Est @ 3.58% 3,527.87
2029 9,478.89 Est @ 3.49% 3,283.71
Present value of next 10 years cash flows $44,790.00
SWX:CAT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $9,478.89 × (1 + 3.28%) ÷ (11.18% – 3.28%)
$123,786.54
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $123,786.54 ÷ (1 + 11.18%)10
$42,882.55
SWX:CAT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $44,790.00 + $42,882.55
$87,672.55
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $87,672.55 / 552.66
$158.64
SWX:CAT Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in SWX:CAT represents 1.00475x of NYSE:CAT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00475x
Value per Share
(Listing Adjusted, CHF)
= Value per Share (USD) x Listing Adjustment Factor
= $ 158.64 x 1.00475
CHF159.39
Value per share (CHF) From above. CHF159.39
Current discount Discount to share price of CHF146.00
= -1 x (CHF146.00 - CHF159.39) / CHF159.39
8.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Caterpillar is available for.
Intrinsic value
8%
Share price is CHF146 vs Future cash flow value of CHF159.39
Current Discount Checks
For Caterpillar to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Caterpillar's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Caterpillar's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Caterpillar's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Caterpillar's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:CAT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $10.62
NYSE:CAT Share Price ** NYSE (2019-11-15) in USD $145.31
Switzerland Machinery Industry PE Ratio Median Figure of 25 Publicly-Listed Machinery Companies 23.34x
Switzerland Market PE Ratio Median Figure of 171 Publicly-Listed Companies 19.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Caterpillar.

SWX:CAT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CAT Share Price ÷ EPS (both in USD)

= 145.31 ÷ 10.62

13.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Caterpillar is good value based on earnings compared to the CH Machinery industry average.
  • Caterpillar is good value based on earnings compared to the Switzerland market.
Price based on expected Growth
Does Caterpillar's expected growth come at a high price?
Raw Data
SWX:CAT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.68x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
1.1%per year
Switzerland Machinery Industry PEG Ratio Median Figure of 23 Publicly-Listed Machinery Companies 1.18x
Switzerland Market PEG Ratio Median Figure of 124 Publicly-Listed Companies 2.17x

*Line of best fit is calculated by linear regression .

SWX:CAT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.68x ÷ 1.1%

12.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Caterpillar is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Caterpillar's assets?
Raw Data
SWX:CAT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $27.05
NYSE:CAT Share Price * NYSE (2019-11-15) in USD $145.31
Switzerland Machinery Industry PB Ratio Median Figure of 25 Publicly-Listed Machinery Companies 2.3x
Switzerland Market PB Ratio Median Figure of 214 Publicly-Listed Companies 1.66x
SWX:CAT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CAT Share Price ÷ Book Value per Share (both in USD)

= 145.31 ÷ 27.05

5.37x

* Primary Listing of Caterpillar.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Caterpillar is overvalued based on assets compared to the CH Machinery industry average.
X
Value checks
We assess Caterpillar's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Caterpillar has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Caterpillar expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Caterpillar expected to grow at an attractive rate?
  • Caterpillar's earnings growth is positive but not above the low risk savings rate of 3.3%.
Growth vs Market Checks
  • Caterpillar's earnings growth is positive but not above the Switzerland market average.
  • Caterpillar's revenue growth is positive but not above the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:CAT Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:CAT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 1.1%
SWX:CAT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 0.3%
Switzerland Machinery Industry Earnings Growth Rate Market Cap Weighted Average 14.5%
Switzerland Machinery Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 9.9%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SWX:CAT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:CAT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 59,782 9,936 7,294 1
2022-12-31 58,539 9,321 7,141 1
2021-12-31 52,498 8,159 5,940 9
2020-12-31 52,359 8,160 5,887 19
2019-12-31 53,998 7,353 6,253 20
2019-11-18
SWX:CAT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 54,998 6,561 6,043
2019-06-30 55,750 7,184 6,276
2019-03-31 55,329 6,744 6,363
2018-12-31 54,722 6,558 6,147
2018-09-30 53,276 5,016 3,800
2018-06-30 51,179 4,865 3,132
2018-03-31 48,499 5,099 2,227
2017-12-31 45,462 5,706 754
2017-09-30 42,140 6,826 882
2017-06-30 39,887 6,756 106
2017-03-31 38,898 6,688 -146
2016-12-31 38,537 5,639 -67

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Caterpillar's earnings are expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).
  • Caterpillar's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:CAT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Caterpillar Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:CAT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 16.47 16.47 16.47 1.00
2022-12-31 15.04 15.04 15.04 1.00
2021-12-31 11.72 13.75 9.79 8.00
2020-12-31 10.93 12.56 9.88 19.00
2019-12-31 11.15 11.46 10.82 19.00
2019-11-18
SWX:CAT Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 10.62
2019-06-30 10.86
2019-03-31 10.88
2018-12-31 10.39
2018-09-30 6.38
2018-06-30 5.26
2018-03-31 3.75
2017-12-31 1.27
2017-09-30 1.50
2017-06-30 0.18
2017-03-31 -0.25
2016-12-31 -0.11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Caterpillar is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Caterpillar's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Caterpillar has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Caterpillar performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Caterpillar's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Caterpillar's year on year earnings growth rate has been positive over the past 5 years.
  • Caterpillar's 1-year earnings growth exceeds its 5-year average (59% vs 17.7%)
  • Caterpillar's earnings growth has exceeded the CH Machinery industry average in the past year (59% vs 2.7%).
Earnings and Revenue History
Caterpillar's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Caterpillar Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:CAT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 54,998.00 6,043.00 4,870.00 1,773.00
2019-06-30 55,750.00 6,276.00 4,851.00 1,821.00
2019-03-31 55,329.00 6,363.00 4,906.00 1,842.00
2018-12-31 54,722.00 6,147.00 4,806.00 1,850.00
2018-09-30 53,276.00 3,800.00 4,421.00 1,882.00
2018-06-30 51,179.00 3,132.00 4,457.00 1,864.00
2018-03-31 48,499.00 2,227.00 4,491.00 1,860.00
2017-12-31 45,462.00 754.00 4,425.00 1,842.00
2017-09-30 42,140.00 882.00 4,515.00 1,866.00
2017-06-30 39,887.00 106.00 4,288.00 1,858.00
2017-03-31 38,898.00 -146.00 4,099.00 1,868.00
2016-12-31 38,537.00 -67.00 4,476.00 1,853.00
2016-09-30 39,993.00 1,010.00 3,890.00 2,001.00
2016-06-30 41,795.00 1,286.00 4,026.00 2,061.00
2016-03-31 43,770.00 1,538.00 4,196.00 2,103.00
2015-12-31 47,011.00 2,512.00 4,363.00 2,119.00
2015-09-30 50,225.00 3,363.00 4,616.00 2,125.00
2015-06-30 52,812.00 3,821.00 4,900.00 2,145.00
2015-03-31 54,645.00 4,018.00 5,032.00 2,151.00
2014-12-31 55,184.00 2,452.00 5,894.00 2,380.00
2014-09-30 55,342.00 3,941.00 4,984.00 2,024.00
2014-06-30 55,216.00 3,870.00 4,873.00 1,960.00
2014-03-31 55,687.00 3,831.00 4,866.00 1,992.00
2013-12-31 55,656.00 3,789.00 4,981.00 2,046.00
2013-09-30 57,329.00 3,483.00 5,098.00 2,192.00
2013-06-30 60,351.00 4,236.00 5,253.00 2,357.00
2013-03-31 63,104.00 4,975.00 5,349.00 2,441.00
2012-12-31 65,875.00 5,681.00 5,301.00 2,466.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Caterpillar made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Caterpillar used its assets more efficiently than the CH Machinery industry average last year based on Return on Assets.
  • Caterpillar has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Caterpillar's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Caterpillar has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Caterpillar's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Caterpillar's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Caterpillar is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Caterpillar's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Caterpillar's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Caterpillar Company Filings, last reported 1 month ago.

SWX:CAT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 14,993.00 37,967.00 6,380.00
2019-06-30 14,878.00 36,349.00 6,528.00
2019-03-31 15,478.00 35,840.00 6,358.00
2018-12-31 14,080.00 36,137.00 6,968.00
2018-09-30 15,890.00 35,766.00 7,189.00
2018-06-30 14,942.00 36,163.00 7,786.00
2018-03-31 15,272.00 35,310.00 7,034.00
2017-12-31 13,766.00 34,443.00 7,381.00
2017-09-30 15,697.00 35,925.00 8,736.00
2017-06-30 14,079.00 37,193.00 8,926.00
2017-03-31 13,660.00 38,283.00 8,223.00
2016-12-31 13,213.00 36,716.00 5,257.00
2016-09-30 15,715.00 37,112.00 4,894.00
2016-06-30 15,303.00 38,327.00 5,579.00
2016-03-31 15,753.00 38,366.00 4,744.00
2015-12-31 14,885.00 37,940.00 5,340.00
2015-09-30 15,968.00 37,547.00 4,808.00
2015-06-30 17,161.00 38,325.00 6,466.00
2015-03-31 17,038.00 38,781.00 6,218.00
2014-12-31 16,826.00 39,208.00 6,317.00
2014-09-30 18,896.00 39,291.00 4,805.00
2014-06-30 20,923.00 40,251.00 6,615.00
2014-03-31 20,369.00 38,135.00 4,057.00
2013-12-31 20,878.00 37,659.00 4,597.00
2013-09-30 18,177.00 39,543.00 4,108.00
2013-06-30 17,678.00 39,557.00 3,974.00
2013-03-31 18,318.00 40,495.00 3,594.00
2012-12-31 17,582.00 40,079.00 3,306.00
  • Caterpillar's level of debt (253.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (207.7% vs 253.2% today).
  • Debt is not well covered by operating cash flow (17.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 41.5x coverage).
X
Financial health checks
We assess Caterpillar's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Caterpillar has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Caterpillar's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.84%
Current annual income from Caterpillar dividends. Estimated to be 2.82% next year.
If you bought CHF2,000 of Caterpillar shares you are expected to receive CHF57 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Caterpillar's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (1.85%).
  • Caterpillar's dividend is below the markets top 25% of dividend payers in Switzerland (3.6%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SWX:CAT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
Switzerland Machinery Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 2.2%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 163 Stocks 2.9%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.2%
Switzerland Bottom 25% Dividend Yield 25th Percentile 1.8%
Switzerland Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SWX:CAT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 4.52 1.00
2022-12-31 4.31 1.00
2021-12-31 4.53 8.00
2020-12-31 4.19 17.00
2019-12-31 3.76 17.00
2019-11-18
SWX:CAT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-09 4.120 2.996
2019-05-02 4.120 3.255
2019-04-10 3.440 2.463
2018-12-12 3.440 2.609
2018-10-10 3.440 2.698
2018-06-13 3.440 2.416
2018-04-11 3.120 2.051
2017-12-13 3.120 2.006
2017-10-11 3.120 2.279
2017-06-14 3.120 2.728
2017-04-12 3.080 3.039
2016-12-14 3.080 3.259
2016-10-12 3.080 3.424
2016-06-08 3.080 3.804
2016-04-13 3.080 4.130
2015-12-09 3.080 4.559
2015-10-14 3.080 4.341
2015-07-31 3.080 4.218
2015-07-23 3.080 3.990
2015-04-08 2.800 3.275
2014-12-10 2.800 3.319
2014-10-08 2.800 2.831
2014-06-11 2.800 2.653
2014-04-09 2.400 2.296
2013-12-11 2.400 2.559
2013-10-09 2.400 2.838
2013-06-12 2.400 2.848
2013-04-10 2.080 2.433
2012-12-12 2.080 2.273
2012-10-08 2.080 2.456
2012-06-13 2.080 2.422
2012-04-11 1.840 1.929
2011-12-14 1.840 1.752
2011-10-12 1.840 2.010
2011-06-08 1.840 2.032
2011-04-13 1.760 1.651
2010-12-08 1.760 1.768
2010-10-13 1.760 2.141
2010-06-09 1.760 2.563
2010-04-14 1.680 2.631
2009-12-09 1.680 2.869
2009-10-14 1.680 2.911
2009-06-10 1.680 3.993
2009-04-13 1.680 4.721
2008-12-10 1.680 5.249

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Caterpillar's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
X
Income/ dividend checks
We assess Caterpillar's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Caterpillar afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Caterpillar has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Caterpillar's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Umpleby
COMPENSATION $27,289,513
AGE 61
TENURE AS CEO 2.8 years
CEO Bio

Mr. D. James Umpleby, III, also known as Jim, has been the Chief Executive Officer and Chairman of the Board of Caterpillar Inc. since January 1, 2017 and December 12, 2018 respectively. Mr. Umpleby is a Director at Chevron Corporation since March 01, 2018. He served as Group President of Energy & Transportation at Caterpillar Inc. from January 2013 to January 1, 2017. Mr. Umpleby served as the Group President of Energy & Power Systems at Caterpillar Inc. from January 1, 2013 to 2016. He served as Vice President of Caterpillar Inc. from June 1, 2010 to 2013. He served as the President of Solar Turbines Incorporated of Caterpillar Inc. from June 1, 2010 to January 1, 2013. He served as a Vice President for oil and gas of Solar Turbines Inc. since 2007. He joined Solar Turbines in 1980 as an Associate Engineer. Over the course of the next decade with Solar, he held a number of engineering and sales positions with growing responsibilities. Since 1994, he served as the Director of Power Systems Operations and Plant Manager of Solar's Kearny Mesa gas turbine packaging facility. Since 1997, he served as a Vice President with responsibility for customer services at Solar. Since 2005, he served as a General Manager for Global Services in the Product Support Division at Caterpillar. His other Directorships and Memberships are at Business Roundtable; Latin America Conservation Council; Rose-Hulman Institute of Technology; U.S.– India Strategic Partnership Forum. He holds a Bachelor of Science in mechanical engineering from the Rose-Hulman Institute of Technology.

CEO Compensation
  • Jim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jim's remuneration is higher than average for companies of similar size in Switzerland.
Management Team Tenure

Average tenure and age of the Caterpillar management team in years:

2.8
Average Tenure
53
Average Age
  • The tenure for the Caterpillar management team is about average.
Management Team

Jim Umpleby

TITLE
Chairman of the Board & CEO
COMPENSATION
$27M
AGE
61
TENURE
2.8 yrs

Andrew R. Bonfield

TITLE
Chief Financial Officer
COMPENSATION
$8M
AGE
56
TENURE
1.2 yrs

Denise Johnson

TITLE
Group President of Resource Industries
COMPENSATION
$7M
AGE
53
TENURE
3.6 yrs

Tom Pellette

TITLE
Senior Vice President
COMPENSATION
$9M
AGE
56
TENURE
0.7 yrs

Bob De Lange

TITLE
Group President of Services
COMPENSATION
$7M
AGE
49
TENURE
2.8 yrs

G. Marvel

TITLE
Chief Accounting Officer
AGE
57
TENURE
0.7 yrs

Karl Weiss

TITLE
CTO and Vice President of Innovation & Technology Development Division
TENURE
0.5 yrs

Julie Lagacy

TITLE
VP of Global Information Services (GIS) Division & Chief Information Officer
AGE
52
TENURE
4.8 yrs

Jennifer Driscoll

TITLE
Director of Investor Relations
AGE
53

Suzette Long

TITLE
Chief Legal Officer
AGE
53
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Caterpillar board of directors in years:

9.6
Average Tenure
63.5
Average Age
  • The tenure for the Caterpillar board of directors is about average.
Board of Directors

Jim Umpleby

TITLE
Chairman of the Board & CEO
COMPENSATION
$27M
AGE
61
TENURE
0.9 yrs

Dan Dickinson

TITLE
Independent Director
COMPENSATION
$331K
AGE
58
TENURE
13.8 yrs

Miles White

TITLE
Independent Director
COMPENSATION
$328K
AGE
64
TENURE
8.8 yrs

Dave Calhoun

TITLE
Presiding Director
COMPENSATION
$550K
AGE
61
TENURE
0.9 yrs

Juan Ignacio Gallardo Thurlow

TITLE
Independent Director
COMPENSATION
$315K
AGE
72
TENURE
21.8 yrs

Bill Osborn

TITLE
Independent Director
COMPENSATION
$340K
AGE
72
TENURE
19.8 yrs

Ed Rust

TITLE
Independent Director
COMPENSATION
$339K
AGE
69
TENURE
16.8 yrs

Susan Schwab

TITLE
Independent Director
COMPENSATION
$311K
AGE
64
TENURE
10.4 yrs

Dennis Muilenburg

TITLE
Independent Director
COMPENSATION
$300K
AGE
55
TENURE
8.8 yrs

Debbie Reed-Klages

TITLE
Independent Director
COMPENSATION
$304K
AGE
63
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • Caterpillar individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CHF) Value (CHF)
06. Nov 19 Sell Denise Johnson Individual 05. Nov 19 05. Nov 19 -5,108 CHF145.69 CHF-743,891
X
Management checks
We assess Caterpillar's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Caterpillar has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Its Construction Industries segment offers asphalt pavers, compactors, cold planers, feller bunchers, harvesters, motorgraders, pipelayers, road reclaimers, skidders, telehandlers, and utility vehicles; backhoe, knuckleboom, compact track, multi-terrain, skid steer, and track-type loaders; forestry and wheel excavators; and site prep and track-type tractors. The company’s Resource Industries segment provides electric rope and hydraulic shovels, draglines, rotary drills, hard rock vehicles, track-type tractors, mining trucks, longwall miners, wheel loaders, off-highway and articulated trucks, wheel tractor scrapers, wheel dozers, landfill and soil compactors, machinery components, electronics and control systems, select work tools, and hard rock continuous mining systems. Its Energy & Transportation segment offers reciprocating engine powered generator sets; reciprocating engines and integrated systems for the power generation, marine, oil, and gas industries; turbines, centrifugal gas compressors, and related services; remanufactured reciprocating engines and components; and diesel-electric locomotives and components, and other rail-related products. The company’s Financial Products segment provides operating and finance leases, installment sale contracts, working capital loans, and wholesale financing; and insurance and risk management products. Its All Other operating segment manufactures filters and fluids, undercarriage, ground engaging tools, fluid transfer products, precision seals, and rubber sealing and connecting components; parts distribution; integrated logistics solutions and distribution services; and digital investments services. The company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. The company was founded in 1925 and is headquartered in Deerfield, Illinois.

Details
Name: Caterpillar Inc.
CAT
Exchange: SWX
Founded: 1925
$79,313,395,219
552,658,387
Website: http://www.caterpillar.com
Address: Caterpillar Inc.
510 Lake Cook Road,
Suite 100,
Deerfield,
Illinois, 60015,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CAT Common Stock New York Stock Exchange US USD 02. Jan 1968
DB CAT1 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA CAT1 Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
LSE 0Q18 Common Stock London Stock Exchange GB EUR 02. Jan 1968
SWX CAT Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
ENXTPA CATR Common Stock Euronext Paris FR EUR 02. Jan 1968
WBAG CAT Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
SNSE CAT Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
BVC CAT Common Stock Bolsa de Valores de Colombia CO COP 02. Jan 1968
BMV CAT * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BATS-CHIXE CATZ Common Stock BATS 'Chi-X Europe' GB CHF 02. Jan 1968
BOVESPA CATP34 BDR EACH REPR 1 COM USD1 Bolsa de Valores de Sao Paulo BR BRL 28. Dec 2011
BASE CAT CEDEAR ECH REP 1/5 COM USD1 Buenos Aires Stock Exchange AR ARS 08. Dec 2000
Number of employees
Current staff
Staff numbers
104,000
Caterpillar employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 20:35
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/13
Last earnings filing: 2019/10/31
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.