Caterpillar Inc Intrinsic Value Calculation – Caterpillar Stock Outperforms Despite Day’s Losses, Closing at $258.32
July 29, 2023
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Despite a 1.43% loss in share value to $258.32 on Wednesday, the company still outperformed its competitors in the stock market, which experienced an overall mixed trading session. Caterpillar Inc ($NYSE:CAT). is constantly pushing the boundaries of innovation in order to meet customer needs and maintain its competitive edge. Its subsidiaries focus on providing solutions for a wide range of applications, including mining, construction, forestry, energy, manufacturing, and more. In addition to its product offerings, Caterpillar Inc. also provides financial services and solutions to customers across the globe. As an industry leader in the construction and mining equipment sector, Caterpillar Inc. continues to outperform its competition, even in the face of a volatile stock market.
Market Price
CATERPILLAR INC. stock on Wednesday still managed to outperform despite the 1.4% losses closing at $258.32. The stock opened at $260.5 and steadily declined throughout the day, closing at $258.3 – down from its previous closing price of $262.1. Despite the declining stock prices, CATERPILLAR INC. still managed to remain a strong player in the market and its stock price was still higher than what it opened at – a testament to its staying power and long-term potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Caterpillar Inc. More…
| Total Revenues | Net Income | Net Margin |
| 61.7k | 7.11k | 12.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Caterpillar Inc. More…
| Operations | Investing | Financing |
| 9.03k | -1.91k | -6.67k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Caterpillar Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 83.65k | 65.48k | 30.73 |
Key Ratios Snapshot
Some of the financial key ratios for Caterpillar Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.6% | 9.0% | 16.0% |
| FCF Margin | ROE | ROA |
| 10.3% | 36.2% | 7.4% |
Analysis – Caterpillar Inc Intrinsic Value Calculation
GoodWhale has performed an analysis of CATERPILLAR INC‘s wellbeing to give our clients an insight into the company’s fair value. After taking into account numerous factors such as earnings, assets, liabilities, market conditions and industry outlook, our proprietary Valuation Line has determined that the fair value of CATERPILLAR INC stock lies around $255.2. Currently, the stock is listed at $258.3, meaning that it is slightly overvalued by 1.2%. Our analysis provides investors with an understanding of the stock’s fair price, helping them make informed decisions when making investments. More…
Peers
Caterpillar Inc. is one of the world’s largest manufacturers of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company operates in more than 500 locations across six continents. Caterpillar’s products are used in a variety of industries, including construction, mining, forestry, and energy. The company competes with a number of other manufacturers, including CNH Industrial NV, Deere & Co, AGCO Corp, and others.
– CNH Industrial NV ($NYSE:CNHI)
CNH Industrial N.V. is a holding company, which engages in the manufacture of agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles. It operates through the following segments: Agricultural Equipment, Construction Equipment, Commercial Vehicles, Powertrain, and Financial Services. The Agricultural Equipment segment produces and sells agricultural tractors, combines, haytools, sprayers, forage harvesters, implements and related replacement parts. The Construction Equipment segment manufactures and sells backhoe loaders, small and medium tracked excavators, wheeled excavators, skid steer loaders, compact track loaders, wheel loaders, telehandlers, dumpers, motor graders, soil and asphalt compactors, and other equipment. The Commercial Vehicles segment produces and sells light, medium, and heavy-duty trucks under the Iveco brand. The Powertrain segment manufactures and sells engines, transmissions, axles, and components. The Financial Services segment offers wholesale and retail financing products to customers and dealers to purchase equipment. The company was founded on November 12, 2012 and is headquartered in London, the United Kingdom.
– Deere & Co ($NYSE:DE)
As of 2022, Deere & Co has a market cap of 112.07B and a Return on Equity of 25.53%. The company is engaged in the manufacturing and distribution of equipment used in agricultural, construction, forestry, and turf care.
– AGCO Corp ($NYSE:AGCO)
AGCO Corp is a publicly traded company that manufactures and sells agricultural equipment and related products. As of 2022, the company had a market capitalization of 8.31 billion dollars and a return on equity of 16.62%. The company’s products include tractors, combines, hay tools, sprayers, forage equipment, and more. AGCO Corp is headquartered in Duluth, Georgia, and has operations in North America, Europe, South America, and Asia.
Summary
Caterpillar Inc. stocks had mixed results during Wednesday’s trading session, with a 1.43% fall to $258.32 per share. Despite this loss, Caterpillar Inc. outperformed its competitors on the day. Investors should keep a close watch on Caterpillar Inc.’s stock performance as it may offer insight into how other stocks in the same industry may perform.
Analysts suggest that investors consider the long-term performance of Caterpillar Inc. and its competitors when making decisions about investing in the company. It is also important to consider macroeconomic factors such as global economic growth, consumer trends, and political events when making investing decisions.
