CAT
CATERPILLAR INC
Industrials • CIK: 0000018230
Loading...
Market Cap
$269.14B
P/E (TTM)
30.3x
Rev Growth (TTM)
+4.3%
Net Margin (TTM)
13.1%
FCF Yield (TTM)
3.3%
FCF Margin (TTM)
13.2%
Filing Intelligence
5.0/10
10-K filed Feb 13, 2026 • FY 2025
Executive Summary
Declining operating margins in 2025 were primarily driven by unfavorable manufacturing costs, attributed to higher tariffs, and unfavorable price realization.. Revenue increased by 4% driven by...
Key Concerns
- ●Power & Energy segment was the strongest performer, showing significant growth in sales and profit, while Construction Industries faced...
- ●Cat Financial consolidates an SPC with $1.19 billion in assets and liabilities, indicating potential exposure if the SPC defaults on its...
- ●Caterpillar has $458 million in potential future payments under various guarantees, though no significant losses are anticipated.
Key Strengths
- ●Revenue increased by 4% driven by higher sales volume, mainly from equipment sales to end-users, but was partially offset by unfavorable...
- ●Power & Energy segment was the strongest performer, showing significant growth in sales and profit, while Construction Industries faced...
- ●Despite a slight decrease in operating cash flow, the company maintained a strong cash position ($10 billion) and increased capital...
Cash Flow Health
Free Cash Flow8/8 positive
TTM$8.9B
Q4 '25
$2.7B-13%
Q3 '25
$3.1B+20%
FCF Margin
TTM13.2%
Q4 '2514.1%-19%
Sector: 4.7%Top 25%
OCF Margin17.4%
OCF/NI1.32x
CapEx Coverage4.2x
FCF Yield3.3%
FCF Growth (2Y)+11%
Cash Conversion Cycle
153 days
DSO: 53+DIO: 186−DPO: 85
Capital Allocation & Returns
Balanced
Total Shareholder YieldTTM
TTM2.9%
Div Yield1.0%
+Buyback (TTM)1.9%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)1.0%
FCF Payout Ratio30.8%
Free Cash Flow (TTM)$8.9B
Stock Repurchases (TTM)$5.2B
Capital Return / FCF89.0%
Est. Dividends Paid (TTM)$2.7B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
26.1%
Moderate
-0.1% YoY-13.9%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
12.5%
8Q: 14.8%
Asset Turnover
0.75x
8Q: 0.76x
Leverage (1+D/E)
–
Asset & CapEx Efficiency
Fixed Asset Turn
4.84x
8Q:5.01x
-13.5%
Invested Cap Turn
2.08x
8Q:2.16x
-3.4%
CapEx Intensity
8.7%
8Q:7.7%
CapEx/Depreciation
1.25x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $67.6B | $19.1B↑8.5% | $17.6B↑6.5% | $16.6B↑16.3% | $14.2B↓12.1% | $16.2B↑0.7% | $16.1B↓3.5% | $16.7B↑5.6% | $15.8B |
Operating Income | $11.2B | $2.7B↓12.8% | $3.1B↑6.7% | $2.9B↑10.9% | $2.6B↓11.8% | $2.9B↓7.1% | $3.1B↓9.6% | $3.5B↓1.1% | $3.5B |
Net Income | $8.9B | $2.4B↑4.4% | $2.3B↑5.6% | $2.2B↑8.8% | $2.0B↓28.2% | $2.8B↑13.3% | $2.5B↓8.1% | $2.7B↓6.1% | $2.9B |
Operating Cash Flow | $11.7B | $3.6B↓3.9% | $3.7B↑19.7% | $3.1B↑142.2% | $1.3B↓62.0% | $3.4B↓4.9% | $3.6B↑18.1% | $3.0B↑47.2% | $2.1B |
Free Cash Flow | $8.9B | $2.7B↓12.5% | $3.1B↑19.9% | $2.6B↑343.4% | $579.0M↓78.5% | $2.7B↓13.9% | $3.1B↑16.6% | $2.7B↑72.7% | $1.6B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
30.3x
Volatile
8Q: 77.5x+4631%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
30.3x
vs – sector
Cash Flow
30.8x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
1.2P/E per %ROIC
ROIC: 26.1%
Shareholder Returns
Dividend
1.0%
Buyback
1.9%
Total Yield
2.9%
Market Cap$269.14B
EV$274.50B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
92/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)
–
8Q:–
Return on Invested Capital (ROIC)Top 25%
26.1%
8Q:–
-13.9%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 12.5%
Asset Turnover: 0.75x
Earnings Quality
Cash Conversion
1.32x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin47.0%
Capital Efficiency
Invested Capital Turnover2.08x
Working Capital
Cash Conversion Cycle153 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
60/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
4.3%
OpInc Growth YoY
-9.0%
EPS Growth YoY
-14.7%
FCF 3Y CAGR
11.3%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
Margin Quality & Sustainability
High Quality
Profitability Cascade
Gross
47.0%
Operating
16.5%
Top 25% in sector
Net
13.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+0.1 pts
FCF: 13.2% | Net: 13.1%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Net Debt / EBITDA
–Net Debt: $26.22B
Interest Coverage
–
Balance sheet risk & solvency analysis