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Caterpillar Inc
🇺🇸 CAT · NYSE/NASDAQ · US1491231015
Industrials
USD 869.11 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
36.8
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: 869.11 ÷ 23.22 = 36.8
TTM period through: 2026-06-30
Forward P/E (estimated): 33.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 36.9
Net Debt/EBITDA (TTM)
2.2x
Latest quarter: 7.2x
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: 2026-06-30
Latest quarter (2026-06-30): 7.2x
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
57.0%
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
25.2x
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)
0.62%
TTM: 0.72%
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): 0.62%
Trailing Yield (TTM, last 12 months): 0.72%
Payout Ratio (Fwd)
28.1%
TTM: 31.9%
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): 28.1%
Payout (TTM): 31.9%
Cash Flow Payout (TTM): 25.4%
FCF Coverage (TTM): 3.60x
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 Jul 2027 | — | USD | 1.63 |
| Forecast* | Quarterly | — | 20 Apr 2027 | — | USD | 1.51 |
| Forecast* | Quarterly | — | 20 Jan 2027 | — | USD | 1.51 |
| Forecast* | Quarterly | — | 20 Oct 2026 | — | USD | 1.51 |
| Paid | 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 |
* 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 highly secure dividend track record. However, with current valuation multiples near 37x earnings and a yield below 1%, the stock offers no margin of safety for new income investors. Existing holders should maintain their positions to compound dividend growth, while new buyers should keep this on a strict WATCH list for a cyclical pullback.
Sector Context
Caterpillar operates in the Industrials sector, specifically Farm & Heavy Construction Machinery. For DGI investors, CAT represents an economic bellwether with a formidable oligopolistic moat anchored by its global dealer network. However, its earnings are highly cyclical, making it optimal to initiate positions during economic downcycles rather than at peak valuation multiples.
📊 Strategy Analysis
- • Elite profitability with a Return on Equity (ROE) of 56.97% and strong EBITDA margins of 23.29%.
- • Highly secure dividend covered 3.6x by Free Cash Flow, utilizing a conservative 25.86% payout ratio.
- • Consistent dividend growth (8.2% full history CAGR) complemented by a 2.57% net buyback yield, generating a 3.29% total shareholder yield.
- • Robust earnings momentum fueled by AI data center and infrastructure demand, pushing 5-year EPS CAGR to 9.8%.
⚠ What to Watch
- • Extreme valuation with a trailing P/E of 36.84x vastly exceeds the DGI target range of 8-15x, offering zero margin of safety.
- • The current dividend yield of 0.72% falls drastically short of income-focused requirements, directly suppressed by the surging share price.
- • Long-term structural risk surrounding global decarbonization, requiring continuous, massive R&D capital to shift machinery away from 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.