CAT
CATERPILLAR INC
Industrials • CIK: 0000018230
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Market Cap
$225.82B
P/E (TTM)
24.4x
Rev Growth (TTM)
-1.5%
Net Margin (TTM)
14.3%
FCF Yield (TTM)
3.9%
FCF Margin (TTM)
13.8%
Cash Flow Health
Free Cash Flow8/8 positive
TTM$8.9B
Q3 '25
$3.1B+20%
Q2 '25
$2.6B+343%
FCF Margin
TTM13.8%
Q3 '2517.5%+13%
Sector: 7.3%Top 25%
OCF Margin17.8%
OCF/NI1.24x
CapEx Coverage4.4x
FCF Yield3.9%
FCF Growth (2Y)+20%
Cash Conversion Cycle
162 days
DSO: 53+DIO: 199−DPO: 90
Capital Allocation & Returns
Balanced
Total Shareholder YieldTTM
TTM3.6%
Div Yield1.2%
+Buyback (TTM)2.4%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)1.2%
FCF Payout Ratio30.5%
Free Cash Flow (TTM)$8.9B
Stock Repurchases (TTM)$5.5B
Capital Return / FCF92.1%
Est. Dividends Paid (TTM)$2.7B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
388.4%
Stable
-0.2% YoY-4.4%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
13.9%
8Q: 15.3%
Asset Turnover
0.73x
8Q: 0.76x
Leverage (1+D/E)
–
Asset & CapEx Efficiency
Fixed Asset Turn
4.77x
8Q:5.01x
-46.7%
Invested Cap Turn
28.00x
8Q:-2.75x
-1963.2%
CapEx Intensity
1.1%
8Q:-3.0%
CapEx/Depreciation
1.18x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q3 2025 | Q2 2025 | Q 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q 2024 | Q4 2023 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $64.7B | $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↓7.4% | $17.1B |
Operating Income | $11.4B | $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↑12.3% | $3.1B |
Net Income | $9.3B | $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↑6.7% | $2.7B |
Operating Cash Flow | $11.5B | $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↓48.7% | $4.0B |
Free Cash Flow | $8.9B | $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↓55.2% | $3.5B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
24.4x
Valuation Lenses
Earnings
24.4x
vs – sector
Cash Flow
20.4x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
0.1P/E per %ROIC
ROIC: 388.4%
Shareholder Returns
Dividend
1.2%
Buyback
2.4%
Total Yield
3.6%
Market Cap$225.82B
EV–
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
94/100
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%
3.9%
8Q:–
-4.4%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 13.9%
Asset Turnover: 0.73x
Earnings Quality
Cash Conversion
1.24x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin49.2%
Capital Efficiency
Invested Capital Turnover28.00x
Working Capital
Cash Conversion Cycle162 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
58/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
-1.5%
OpInc Growth YoY
-3.0%
EPS Growth YoY
-9.6%
FCF 3Y CAGR
20.1%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
Margin Quality & Sustainability
High Quality
Profitability Cascade
Gross
49.2%
Operating
17.7%
Above Avg in sector
Net
14.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-0.6 pts
FCF: 13.8% | Net: 14.3%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $7.54B
Interest Coverage
–
+Net cash position: $7.54B
Leverage Metrics
Debt-to-Equity
–x
Balance sheet risk & solvency analysis