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Caterpillar Inc
🇺🇸 CAT · NYSE/NASDAQ · US1491231015
Industrials
USD 977.47 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
48.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 977.47 ÷ 20.08 = 48.7
TTM period through: 2026-03-31
Forward P/E (estimated): 41.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 48.1
Net Debt/EBITDA (TTM)
2.5x
Latest quarter: 9.1x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 9.1x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
51.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
33.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
0.67%
TTM: 0.61%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 0.67%
Trailing Yield (TTM, last 12 months): 0.61%
Payout Ratio (Fwd)
32.5%
TTM: 29.5%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 32.5%
Payout (TTM): 29.5%
Cash Flow Payout (TTM): 22.6%
FCF Coverage (TTM): 4.12x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
7.2%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 20 Apr 2027 | — | USD | 1.51 |
| Forecast* | Quarterly | — | 20 Jan 2027 | — | USD | 1.51 |
| Forecast* | Quarterly | — | 20 Oct 2026 | — | USD | 1.51 |
| Declared | Quarterly | 10 Jun 2026 | 20 Jul 2026 | 19 Aug 2026 | USD | 1.63 |
| Paid | Quarterly | 08 Apr 2026 | 20 Apr 2026 | 19 May 2026 | USD | 1.51 |
| Paid | Quarterly | 10 Dec 2025 | 20 Jan 2026 | 19 Feb 2026 | USD | 1.51 |
| Paid | Quarterly | 06 Oct 2025 | 20 Oct 2025 | 20 Nov 2025 | USD | 1.51 |
| Paid | Quarterly | 11 Jun 2025 | 21 Jul 2025 | 20 Aug 2025 | USD | 1.51 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Caterpillar remains an outstanding global industrial leader with exceptional profitability, a formidable competitive moat, and a recently announced 11.6% dividend increase. However, current valuation multiples approaching 49x earnings and a sub-1% yield offer limited appeal for income-focused investors. Existing shareholders should maintain positions given the immense business quality, but new investors should wait for a significant market correction to provide a better entry point.
Sector Context
Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. While the heavy machinery sector is typically cyclical and capital-intensive, Caterpillar mitigates this through an unparalleled global dealer network and lucrative aftermarket services that provide recurring revenue streams.
📊 Strategy Analysis
- • Exceptional business fundamentals supported by a massive competitive moat via its global dealer network, driving an impressive 51.3% ROE and strong cash flow generation.
- • Highly secure dividend backed by a low 30% payout ratio and over 4x free cash flow coverage, further reinforced by an announced 11.6% upcoming dividend raise.
- • Healthy balance sheet with a Net Debt/EBITDA of 2.45x, providing robust financial stability to navigate cyclical industrial demand.
⚠ What to Watch
- • Extreme valuation with a trailing P/E of 48.7x, vastly exceeding the strategy's target range of 8-15x and offering no margin of safety for new capital.
- • The current dividend yield of 0.61% falls significantly short of the 3% minimum requirement for income-focused dividend strategies.
- • Long-term structural risk from the global transition to decarbonization, which will require massive R&D capital allocation to shift heavy machinery away from traditional internal combustion engines.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.