|CAT Overview
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%

LATEST EARNINGS

Q3 FY2025
4 months ago
View source
Revenue
Net Income
EPS
  • Sales and revenues increased 10% to $17.6 billion, primarily due to higher sales volume of equipment to end users.
  • Energy & Transportation segment sales increased 17% to $8.4 billion, driven by higher sales volume in Oil and Gas, and Power Generation applications.
  • Enterprise operating cash flow was strong at $3.7 billion in the quarter.

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: 199DPO: 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

MetricTTMQ3 2025Q2 2025Q 2025Q4 2024Q3 2024Q2 2024Q 2024Q4 2023
Revenue
$64.7B
$17.6B6.5%
$16.6B16.3%
$14.2B12.1%
$16.2B0.7%
$16.1B3.5%
$16.7B5.6%
$15.8B7.4%
$17.1B
Operating Income
$11.4B
$3.1B6.7%
$2.9B10.9%
$2.6B11.8%
$2.9B7.1%
$3.1B9.6%
$3.5B1.1%
$3.5B12.3%
$3.1B
Net Income
$9.3B
$2.3B5.6%
$2.2B8.8%
$2.0B28.2%
$2.8B13.3%
$2.5B8.1%
$2.7B6.1%
$2.9B6.7%
$2.7B
Operating Cash Flow
$11.5B
$3.7B19.7%
$3.1B142.2%
$1.3B62.0%
$3.4B4.9%
$3.6B18.1%
$3.0B47.2%
$2.1B48.7%
$4.0B
Free Cash Flow
$8.9B
$3.1B19.9%
$2.6B343.4%
$579.0M78.5%
$2.7B13.9%
$3.1B16.6%
$2.7B72.7%
$1.6B55.2%
$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