Caterpillar Inc Intrinsic Value Calculator – Caterpillar Valuation Found Reasonable Amid Robust Revenue and Cash Flows
December 6, 2023
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Caterpillar Inc ($NYSE:CAT), a global leader in construction and mining machinery, has been found to have a reasonable valuation in spite of their robust revenue and cash flows. This assessment appears to be sensible, given the strong performance of Caterpillar over the past several years. Caterpillar has maintained its strong presence in the construction and mining sectors, with a market share of around 17%. Its products have consistently received positive reviews from experts and customers alike, contributing to the company’s steady revenue growth.
In addition, Caterpillar has benefitted from cost-cutting initiatives, which have enabled it to remain competitive. In conclusion, Caterpillar’s valuation appears to be reasonable and justified. The company has demonstrated strong and consistent revenue growth and cash flows, making it an attractive investment option. Its presence in the construction and mining sectors is well established, and its products and services are well-regarded by experts and customers.
Earnings
In the recent earnings report of CATERPILLAR INC ending on September 30 2021, the company reported 12.4B USD in total revenue and 1.43B USD in net income. Although this showed a 17.3% decrease in the total revenue and 29.9% decrease in net income from the previous year, CATERPILLAR INC’s revenue has grown significantly from 12.4B USD to 16.81B USD in the last 3 years. Despite difficulties faced due to the current economic climate, analysts have found CATERPILLAR INC’s valuation to be reasonable, given robust revenue and cash flows.
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 |
| 66.59k | 9.11k | 15.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Caterpillar Inc. More…
| Operations | Investing | Financing |
| 11.62k | -6.16k | -5.02k |
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 |
| 86.79k | 66.28k | 40.25 |
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 |
| 15.1% | 35.3% | 18.6% |
| FCF Margin | ROE | ROA |
| 13.0% | 40.0% | 8.9% |
Stock Price
Despite the company’s stock opening on Wednesday at $241.8 and closing at $246.0, it still saw a 1.4% decline from its last closing price of $249.4. This is due to the fact that the company has seen strong performance this past year despite ongoing issues due to the global pandemic. This demonstrates that Caterpillar Inc.’s performance has been resilient during the global pandemic and suggests that it is capable of continuing to produce strong financial results. Despite its stock experiencing a slight decline, its performance over the past year suggests that the company is well positioned to continue to produce strong results in the future. Live Quote…
Analysis – Caterpillar Inc Intrinsic Value Calculator
At GoodWhale, we strive to deliver the most accurate and up-to-date analysis of CATERPILLAR INC‘s wellbeing. Our proprietary Valuation Line has calculated the fair value of CATERPILLAR INC’s stock to be around $278.8. At this time, CATERPILLAR INC’s stock is being traded at $246.0, which is a price that is significantly lower than what is fair. This means that CATERPILLAR INC’s stock is undervalued by 11.7%. More…
Peers
Caterpillar Inc. is one of the world’s largest manufacturers of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company operates in more than 500 locations across six continents. Caterpillar’s products are used in a variety of industries, including construction, mining, forestry, and energy. The company competes with a number of other manufacturers, including CNH Industrial NV, Deere & Co, AGCO Corp, and others.
– CNH Industrial NV ($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. is a leading provider of construction and mining equipment, engines and related parts and services to customers across the world. Its strong revenue and cash flows have made it a popular investment for those interested in the construction and mining industries. Analysts believe that the company is currently trading at a reasonable valuation, given its strong financial performance and prospects for continued growth. Investors can expect Caterpillar to continue to generate strong revenue and cash flows in the years to come, making it an attractive stock for long-term investors with a diversified portfolio.
