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Caterpillar

NYSE:CAT
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CAT
NYSE
$77B
Market Cap
  1. Home
  2. US
  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 34 days ago. More info.


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CAT Share Price and Events
7 Day Returns
-3.8%
NYSE:CAT
-3.2%
US Machinery
-1.6%
US Market
1 Year Returns
8.4%
NYSE:CAT
14%
US Machinery
13.9%
US Market
CAT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Caterpillar (CAT) -3.8% -4.6% 13.9% 8.4% 44% 50.6%
US Machinery -3.2% -1.5% 12.9% 14% 29% 41.4%
US Market -1.6% 1% 4.9% 13.9% 36.1% 45.8%
1 Year Return vs Industry and Market
  • CAT underperformed the Machinery industry which returned 14% over the past year.
  • CAT underperformed the Market in United States of America which returned 13.9% 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.

NYSE: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 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

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 NYSE:CAT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.075 (1 + (1- 21%) (49.88%))
1.334
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)
= 1.74% + (1.334 * 5.44%)
9%

Discounted Cash Flow Calculation for NYSE: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.

NYSE:CAT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9%)
2020 6,386.11 Analyst x9 5,859.02
2021 6,739.17 Analyst x6 5,672.62
2022 6,873.00 Analyst x1 5,307.77
2023 7,536.00 Analyst x1 5,339.44
2024 7,850.14 Est @ 4.17% 5,102.94
2025 8,120.18 Est @ 3.44% 4,842.81
2026 8,358.10 Est @ 2.93% 4,573.28
2027 8,573.16 Est @ 2.57% 4,303.77
2028 8,772.32 Est @ 2.32% 4,040.28
2029 8,960.76 Est @ 2.15% 3,786.44
Present value of next 10 years cash flows $48,828.00
NYSE:CAT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $8,960.76 × (1 + 1.74%) ÷ (9% – 1.74%)
$125,639.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $125,639.69 ÷ (1 + 9%)10
$53,090.02
NYSE:CAT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $48,828.00 + $53,090.02
$101,918.02
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $101,918.02 / 552.66
$184.41
NYSE:CAT Discount to Share Price
Calculation Result
Value per share (USD) From above. $184.41
Current discount Discount to share price of $140.12
= -1 x ($140.12 - $184.41) / $184.41
24%

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
24%
Share price is $140.12 vs Future cash flow value of $184.41
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, and 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
NYSE: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 (2019-12-04) in USD $140.12
United States of America Machinery Industry PE Ratio Median Figure of 97 Publicly-Listed Machinery Companies 22.05x
United States of America Market PE Ratio Median Figure of 2,925 Publicly-Listed Companies 18.13x

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

** Primary Listing of Caterpillar.

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

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

= 140.12 ÷ 10.62

13.19x

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 US Machinery industry average.
  • Caterpillar is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Caterpillar's expected growth come at a high price?
Raw Data
NYSE:CAT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
1.2%per year
United States of America Machinery Industry PEG Ratio Median Figure of 78 Publicly-Listed Machinery Companies 1.45x
United States of America Market PEG Ratio Median Figure of 2,046 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.19x ÷ 1.2%

10.87x

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
NYSE: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 (2019-12-04) in USD $140.12
United States of America Machinery Industry PB Ratio Median Figure of 126 Publicly-Listed Machinery Companies 2.41x
United States of America Market PB Ratio Median Figure of 5,089 Publicly-Listed Companies 1.76x
NYSE:CAT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 140.12 ÷ 27.05

5.18x

* 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 US 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 3/6, 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 19 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
1.2%
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 1.7%.
Growth vs Market Checks
  • Caterpillar's earnings growth is positive but not above the United States of America market average.
  • Caterpillar's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CAT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CAT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 1.2%
NYSE:CAT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 0.3%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 1.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
NYSE:CAT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE: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 52,191 8,190 5,885 18
2019-12-31 53,985 7,250 6,247 19
2019-12-04
NYSE: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 1.2% 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
NYSE:CAT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Caterpillar Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE: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 10.96 12.56 9.88 17.00
2019-12-31 11.16 11.46 10.82 17.00
2019-12-04
NYSE: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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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 US Machinery industry average in the past year (59% vs 13.5%).
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 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE: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 US 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 2 months ago.

NYSE: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
2.94%
Current annual income from Caterpillar dividends. Estimated to be 2.92% next year.
If you bought $2,000 of Caterpillar shares you are expected to receive $59 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 United States of America (1.44%).
  • Caterpillar's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
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
NYSE: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 19 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 73 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1957 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

NYSE: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
2019-12-04
NYSE:CAT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-09 4.120 2.959
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 0.8%) - 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 2.9 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 United States of America.
Management Team Tenure

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

2.9
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
2.9 yrs

Andrew R. Bonfield

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

Denise Johnson

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

Tom Pellette

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

Bob De Lange

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

G. Marvel

TITLE
Chief Accounting Officer
AGE
57
TENURE
0.8 yrs

Karl Weiss

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

Julie Lagacy

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

Jennifer Driscoll

TITLE
Director of Investor Relations
AGE
53

Suzette Long

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

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

9.7
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
1 yrs

Dan Dickinson

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

Miles White

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

Dave Calhoun

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

Juan Ignacio Gallardo Thurlow

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

Bill Osborn

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

Ed Rust

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

Susan Schwab

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

Dennis Muilenburg

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

Debbie Reed-Klages

TITLE
Independent Director
COMPENSATION
$304K
AGE
63
TENURE
4.9 yrs
Who owns this company?
Recent Insider Trading
  • Caterpillar individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Nov 19 Sell Denise Johnson Individual 05. Nov 19 05. Nov 19 -5,108 $146.74 $-749,256
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

Will Caterpillar Inc.'s (NYSE:CAT) Earnings Grow Over The Next Year?

In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Caterpillar in the longer term. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … NYSE:CAT Past and Future Earnings, September 4th 2019 This results in an annual growth rate of 2.4% based on the most recent earnings level of US$6.1b to the final forecast of US$7.1b by 2022.

Simply Wall St -

Is Caterpillar (NYSE:CAT) A Risky Investment?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … NYSE:CAT Historical Debt, August 27th 2019 A Look At Caterpillar's Liabilities According to the last reported balance sheet, Caterpillar had liabilities of US$27.7b due within 12 months, and liabilities of US$36.6b due beyond 12 months. … This free cash flow puts the company in a good position to pay down debt, when appropriate.

Simply Wall St -

Did You Miss Caterpillar's (NYSE:CAT) 40% Share Price Gain?

Check out our latest analysis for Caterpillar In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Caterpillar was able to grow its EPS at 70% per year over three years, sending the share price higher.

Simply Wall St -

Read This Before Selling Caterpillar Inc. (NYSE:CAT) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Caterpillar Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Caterpillar Caterpillar Insider Transactions Over The Last Year In the last twelve months, the biggest single purchase by an insider was when Group President of Services Bob De Lange bought US$125k worth of shares at a price of US$116 per share. … Overall we don't see anything to make us think Caterpillar insiders are doubting the company, and they do own shares.

Simply Wall St -

Here's What Caterpillar Inc.'s (NYSE:CAT) P/E Ratio Is Telling Us

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Caterpillar: P/E of 12.12 = $131.67 ÷ $10.86 (Based on the trailing twelve months to June 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio implies that investors pay a higher price for the earning power of the business. … So take a peek at this free list of interesting companies with strong recent earnings growth (and a P/E ratio below 20).

Simply Wall St -

How Should Investors React To Caterpillar Inc.'s (NYSE:CAT) CEO Pay?

has a market capitalization of US$77b, and pays its CEO total annual compensation worth US$27m. … We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. … pays Jim Umpleby more than the median CEO remuneration at large companies, in the same market.

Simply Wall St -

Here's What We Like About Caterpillar Inc. (NYSE:CAT)'s Upcoming Dividend

Caterpillar's next dividend payment will be US$1.03 per share, on the back of last year when the company paid a total of US$3.44 to shareholders. … So we need to check whether the dividend payments are covered, and if earnings are growing. … That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow.

Simply Wall St -

Can We See Significant Institutional Ownership On The Caterpillar Inc. (NYSE:CAT) Share Register?

Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … NYSE:CAT Income Statement, June 18th 2019 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. … Insider Ownership Of Caterpillar While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Why Caterpillar Inc.’s (NYSE:CAT) Return On Capital Employed Is Impressive

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Caterpillar: 0.16 = US$8.4b ÷ (US$79b - US$27b) (Based on the trailing twelve months to March 2019.) Therefore, Caterpillar has an ROCE of 16%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … Our Take On Caterpillar's ROCE Caterpillar's ROCE does look good, but the level of current liabilities also contribute to that.

Simply Wall St -

An Intrinsic Calculation For Caterpillar Inc. (NYSE:CAT) Suggests It's 39% Undervalued

(NYSE:CAT) by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $6.45k $7.35k $8.35k $9.16k $9.86k $10.47k $11.01k $11.49k $11.94k $12.37k Growth Rate Estimate Source Analyst x9 Analyst x9 Analyst x5 Est @ 9.73% Est @ 7.63% Est @ 6.16% Est @ 5.13% Est @ 4.41% Est @ 3.91% Est @ 3.55% Present Value ($, Millions) Discounted @ 10.61% $5.83k $6.01k $6.17k $6.12k $5.96k $5.72k $5.44k $5.13k $4.82k $4.51k Present Value of 10-year Cash Flow (PVCF)= $55.72b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10.6%.

Simply Wall St -

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: NYSE
Founded: 1925
$77,405,333,683
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
ETLX CAT-U Common Stock Eurotlx IT EUR 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 EACH 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: 2019/12/04 23:34
End of day share price update: 2019/12/04 00:00
Last estimates confirmation: 2019/12/04
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.