Caterpillar Stock Analysis, Valuation (NYSE:CAT)

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$156.38 $0.38 (0.24%) CAT stock closing price Sep 21, 2018 (Closing)

View the Caterpillar stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for CAT stock is shown in the video.

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 3.3/5

Amigobulls CAT stock analysis takes into account various financial ratios like relative valuation, Caterpillar revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Caterpillar dividend performance. 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's revenue growth came in at 23.7% in 2018-06.
  • Caterpillar's average operating margin of 13.7 was exceptional.
  • LTM Net margins were good at 6.1% for Caterpillar.
  • The price to earnings multiple of 14.1 is attractive when compared with the sector average PE ratio of 20.4.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Caterpillar at 21.2.
  • The company has a good Free Cash Flow (FCF) margin of 11.8.

Should you sell CAT stock?

  • The company saw an average annual sales decline of -3.2 in sales over the last 5 years.
  • Caterpillar has a debt/equity ratio of 2.42, which is worse than the average in the Industrial Products sector.

Comments on this video and Caterpillar stock

Amigobulls Caterpillar stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CAT stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, Caterpillar revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about CAT stock.