June 14, 2025 a 08:00 am
Caterpillar Inc. (CAT): Fundamental Ratio Analysis
Caterpillar Inc. remains a formidable player in the heavy machinery and construction sector. With a diverse product offering, their recent financial metrics suggest a strong position despite global market fluctuations. CAT's stock can be a stable choice for those seeking long-term growth, balanced by strong fundamentals.
Fundamental Rating
The rating analysis reflects Caterpillar's robust financial health and operational efficiency. Below are the key performance indicators with their respective scores.
| Category | Score | Score Bar |
|---|---|---|
| Overall Score | 3 | |
| Discounted Cash Flow | 3 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 1 | |
| Price to Earnings | 3 | |
| Price to Book | 1 |
Historical Rating
The historical comparison reveals stability in most key areas, with an unchanged overall score over the recent period.
| Date | Overall Score | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-06-13 | 3 | 3 | 5 | 5 | 1 | 3 | 1 |
| 2025-06-14 | 3 | 3 | 5 | 5 | 1 | 3 | 1 |
Analyst Price Targets
Analyst estimates suggest room for growth, with varied perspectives suggesting a consensus position.
| High | Low | Median | Consensus |
|---|---|---|---|
| 471 | 283 | 365 | 374.2 |
Analyst Sentiment
Analysts have maintained a positive outlook, suggesting a majority favoring a 'Buy' stance.
| Recommendation | Count | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 26 | |
| Hold | 20 | |
| Sell | 7 | |
| Strong Sell | 0 |
Conclusion
Caterpillar Inc. is well-positioned in the industrial machinery sector, demonstrating strong financial stability and operational efficiency. The positive trend in analyst recommendations and the current valuation metrics reinforce its potential for moderate growth. However, the debt-to-equity ratio suggests a need for cautious balance sheet management. Investors might find Caterpillar a viable option for long-term holds, especially given its strategic focus on growth and innovation within the sector.