Caterpillar Stock Analysis, Valuation (NYSE:CAT)

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$139.34 $3.08 (2.26%) CAT stock closing price Aug 17, 2018 (Closing)

Investors can watch the Amigobulls Caterpillar stock analysis video here. Our CAT analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Caterpillar Inc. Stock Rating 3.5/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for CAT stock analysis. Caterpillar valuation forms a crucial part of our stock analysis. Caterpillar stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy CAT stock?

  • Caterpillar sales grew by 23.7% year on year in 2018-06.
  • Caterpillar had a healthy average operating margin of 13.7 over the last 4 quarters.
  • Net margins came in at average 6.1% for Caterpillar over the last twelve months.
  • CAT stock is trading at an earnings multiple of 14.1 which is better than the sector average of 20.5.
  • Caterpillar has a good Return On Equity (ROE) of 21.2.
  • Caterpillar has a healthy FCF (Free Cash Flow) margin of 11.8.

Should you sell CAT stock?

  • Sales declined by -3.2 annually over the last 5 years.
  • Caterpillar is debt laden and has a high debt/equity ratio of 2.42.

Comments on this video and Caterpillar stock

Investors can make use of the Amigobulls Caterpillar stock analysis to ascertain how CAT stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Caterpillar revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.