Caterpillar Stock Analysis, Valuation (NYSE:CAT)
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 3.1/5
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's revenue growth came in at 30.9% in 2018-03.
- Caterpillar's average operating margin of 12.57 was exceptional.
- LTM Net margins were good at 4.6% for Caterpillar.
- The price to earnings multiple of 16.2 is attractive when compared with the sector average PE ratio of 21.1.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Caterpillar at 15.4.
- The company has a good Free Cash Flow (FCF) margin of 3.4.
Should you sell CAT stock?
- The company saw an average annual sales decline of -5.1 in sales over the last 5 years.
- Caterpillar has a debt/equity ratio of 2.31, which is worse than the average in the Industrial Products sector.
- Cash flow from operations is 0.5616 times net income which is a negative signal.
- Caterpillar provides a low return on invested capital of 4.2.
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.