CAT

CATERPILLAR INC

Industrials • CIK: 0000018230

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Market Cap
$330.83B
P/E (TTM)
35.1x
Rev Growth (TTM)
+11.8%
Net Margin (TTM)
13.3%
FCF Yield (TTM)
2.9%
FCF Margin (TTM)
13.4%

LATEST EARNINGS

Q1 2026
18 days ago
View source
Revenue
$17.41B
+22.0%
Net Income
$2.55B
+27.3%
EPS
$5.47
+30.2%
Operating
17.7% -0.4%
Net
14.6% +0.6%
  • Sales and revenues increased 22% to $17.4 billion, driven by higher sales volume and favorable price realization.
  • Construction Industries segment sales increased by 38% to $7.161 billion.
  • Power & Energy segment sales increased by 22% to $7.031 billion.
  • The company deployed $5.7 billion of cash for share repurchases and dividends in the first quarter.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$9.5B
Q1 '26
$1.1B-58%
Q4 '25
$2.7B-13%
FCF Margin
TTM13.4%
Q1 '266.6%-53%
Sector: 4.7%Top 25%
OCF Margin17.4%
OCF/NI1.31x
CapEx Coverage4.3x
FCF Yield2.9%
FCF Growth (2Y)+7%
Cash Conversion Cycle
129 days
DSO: 53+DIO: 144DPO: 68

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.8%
Div Yield0.8%
+
Buyback (TTM)2.0%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.8%
FCF Payout Ratio29.3%
Free Cash Flow (TTM)$9.5B
Stock Repurchases (TTM)$6.6B
Capital Return / FCF98.5%
Est. Dividends Paid (TTM)$2.8B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
26.6%
Moderate
-0.1% YoY-12.6%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
12.6%
8Q: 14.0%
Asset Turnover
0.76x
8Q: 0.76x
Leverage (1+D/E)
1.25x
D/E: 0.25x
DuPont: 12.0%26.6% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
4.91x
8Q:4.98x
-31.0%
Invested Cap Turn
2.11x
8Q:2.16x
-16.1%
CapEx Intensity
8.5%
8Q:8.1%
CapEx/Depreciation
1.23x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$70.8B
$17.4B9.0%
$19.1B8.5%
$17.6B6.5%
$16.6B16.3%
$14.2B12.1%
$16.2B0.7%
$16.1B3.5%
$16.7B
Operating Income
$11.7B
$3.1B16.0%
$2.7B12.8%
$3.1B6.7%
$2.9B10.9%
$2.6B11.8%
$2.9B7.1%
$3.1B9.6%
$3.5B
Net Income
$9.4B
$2.5B6.1%
$2.4B4.4%
$2.3B5.6%
$2.2B8.8%
$2.0B28.2%
$2.8B13.3%
$2.5B8.1%
$2.7B
Operating Cash Flow
$12.3B
$1.9B47.9%
$3.6B3.9%
$3.7B19.7%
$3.1B142.2%
$1.3B62.0%
$3.4B4.9%
$3.6B18.1%
$3.0B
Free Cash Flow
$9.5B
$1.1B57.6%
$2.7B12.5%
$3.1B19.9%
$2.6B343.4%
$579.0M78.5%
$2.7B13.9%
$3.1B16.6%
$2.7B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
35.1x
Volatile
8Q: 80.9x+6328%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
35.1x
vs sector
Cash Flow
35.5x
EV/FCF vs
Growth-Adj
3.0xPEG
Expensive for growth
Quality-Adj
1.3P/E per %ROIC
ROIC: 26.6%
Shareholder Returns
Dividend
0.8%
Buyback
2.0%
Total Yield
2.8%
Market Cap$330.83B
EV$336.46B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
91/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
47.7%
8Q:
Return on Invested Capital (ROIC)Top 25%
26.6%
8Q:
-12.6%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 12.6%
Asset Turnover: 0.76x

Earnings Quality

Cash Conversion

1.31x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin33.4%

Capital Efficiency

Invested Capital Turnover2.11x

Working Capital

Cash Conversion Cycle129 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
66/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
11.8%
OpInc Growth YoY
19.6%
EPS Growth YoY
-2.2%
FCF 3Y CAGR
7.4%

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
33.4%
Operating
16.5%
Top 25% in sector
Net
13.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+0.1 pts
FCF: 13.4% | Net: 13.3%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Solid
Net Debt / EBITDA
Net Debt: $653.00M
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.25x
Balance sheet risk & solvency analysis