Caterpillar Inc.CAT
NYSE•Industrials•Farm & Heavy Construction Machinery
Caterpillar Inc. provides construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. The Construction Industries segment offers asphalt pavers, cold planers, compactors, forestry machines, material handlers, motor graders, pipelayers, road reclaimers, telehandlers, track-type tractors, and track and wheel excavators; backhoe, compact track, skid steer, track-type, and wheel loaders; and related parts and work tools. Its Resource Industries segment provides electric rope and hydraulic shovels, draglines, rotary drills, hard rock vehicles, mining trucks, wheel loaders, off-highway and articulated trucks, wide-body trucks, wheel tractor scrapers and dozers, and landfill and soil compactors; machinery components, and wear and maintenance components; and technology products and services for fleet management, equipment management analytics, autonomous machine capabilities, safety services, and mining performance solutions. The Energy & Transportation segment offers reciprocating engine powered generator sets; reciprocating engines, drivetrain, and integrated systems and solutions; centrifugal gas compressors and related services; and diesel-electric locomotive components, and other rail-related products. Its Financial Products segment provides operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, working capital loans, and wholesale financing; and insurance and risk management products and services. The All Other segment offers parts distribution; logistics and distribution services; electronics and control systems; dealer portfolio management; brand management and marketing strategy; and digital investment services. It also provides mining software solutions. The company was formerly known as Caterpillar Tractor Co. Caterpillar Inc. was incorporated in 1925 and is headquartered in Irving, Texas.
as of March 2026
Are revenues and earnings expanding?
$70.75B in TTM revenue grew 11.8% YoY, reaching $17.41B last quarter. TTM EBITDA of $13.97B on operating income of $3.08B shows growth is flowing through. Net income of $9.43B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 17.7% is down 0.4% YoY — costs are rising relative to revenue. Net margin at 14.6% and gross margin of 35.1%. ROE of 50.5% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 48.4x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 6.5x and P/B of 24.5x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
Is the business self-funding?
FCF of $1.14B on $1.87B in operating cash flow. The FCF / Net Income ratio of 0.1x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $4.07B provide financial flexibility. Shares outstanding declined 2.4% YoY — buybacks are returning capital to shareholders.
Competitive analysis based on 66 quarters of fundamental data
Operating margins are positive at ~17.8% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 52.2% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue has grown modestly overall (~6.6%) but trajectory is uneven, suggesting a competitive or cyclical business.
Data-driven red flags and warnings across 66 quarters
Operating margins declined 13.5% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 1.0x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 4.9% — net buybacks are reducing shares outstanding and boosting per-share value.