Caterpillar (CAT) Stock Analysis

July 23, 2026

This is a peer-relative look at Caterpillar (CAT): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Caterpillar (CAT)
Profile Item	CAT
Name	Caterpillar Inc.
Country/Region	United States
GICS Sector	Industrials
GICS Industry Group	Capital Goods
GICS Industry	Machinery
GICS Sub-Industry	Construction Machinery & Heavy Transportation Equipment
Market Capitalization	409.91 billion USD
Currency	USD
Exchange	NYSE
Listing Date	January 2, 1962
Security Type	Common Stock

Price Performance

Cumulative Growth

CAT

GSPC

Caterpillar (CAT) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Caterpillar (CAT) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Caterpillar (CAT) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
Total Return (1Y)	118.98%	20.73%
Total Return (3Y, Annualized)	53.30%	16.65%
Total Return (5Y, Annualized)	35.71%	10.84%

Risk Profile

Drawdown History

CAT

GSPC

Caterpillar (CAT) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Caterpillar (CAT) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
Volatility (1Y, Annualized)	38.22%	42.81%
Beta (5Y)	1.60	1.20
Max Drawdown (5Y)	-34.05%	-48.46%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. CAT is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
Sharpe Ratio (1Y)	3.01	0.38
Sortino Ratio (1Y)	5.00	0.58

Profitability

ROE (TTM)

Caterpillar (CAT) posts ROE of 51.33%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

CAT

Capital Goods industry group

51.33%

Group distribution

CAT: 51.33%
Max: 42.07%
Q3: 19.97%
Median: 11.35%
Q1: 3.35%
Min: -19.79%

Largest peers

BA: 169.95%
GEV: 75.71%
CAT: 51.33%
GE: 48.23%
ETN: 20.85%
DE: 18.35%
RTX: 11.57%

Where Caterpillar (CAT) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Caterpillar (CAT) keeps 13.33% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

CAT

Capital Goods industry group

13.33%

Group distribution

Max: 24.69%
CAT: 13.33%
Q3: 11.54%
Median: 5.80%
Q1: 0.73%
Min: -13.94%

Largest peers

GEV: 23.81%
GE: 17.72%
ETN: 13.99%
CAT: 13.33%
DE: 10.10%
RTX: 8.03%
BA: 2.46%

Where Caterpillar (CAT) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Caterpillar (CAT) turns 18.18% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

CAT

Capital Goods industry group

18.18%

Group distribution

Max: 29.84%
CAT: 18.18%
Q3: 16.03%
Median: 8.69%
Q1: 1.95%
Min: -17.50%

Largest peers

GE: 20.57%
CAT: 18.18%
DE: 17.48%
ETN: 16.11%
RTX: 13.18%
GEV: 5.46%
BA: 1.72%

Where Caterpillar (CAT) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
ROE (TTM)	51.33%	11.35%
ROA (TTM)	8.52%	5.15%
Net Margin (TTM)	13.33%	5.80%
Operating Margin (TTM)	18.18%	8.69%
Gross Margin (TTM)	28.60%	29.71%

Growth

Revenue Growth

Caterpillar (CAT) grew revenue 4.29%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Caterpillar (CAT): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

Caterpillar (CAT) grew earnings per share -14.69%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Caterpillar (CAT): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
Revenue Growth (YoY)	4.29%	8.06%
Revenue Growth (3Y CAGR)	4.38%	6.41%
EPS Growth (YoY)	-14.69%	4.71%
EPS Growth (3Y CAGR)	14.17%	5.63%

Financial Strength

Current Ratio (MRQ)

Caterpillar (CAT) has current ratio of 1.35, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

CAT

Capital Goods industry group

1.35

Group distribution

Max: 5.24
Q3: 2.97
Median: 2.12
Q1: 1.45
CAT: 1.35
Min: 0.71

Largest peers

DE: 2.21
CAT: 1.35
ETN: 1.19
BA: 1.18
RTX: 1.02
GE: 0.98
GEV: 0.89

Where Caterpillar (CAT) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Caterpillar (CAT) has debt-to-equity ratio of 2.31, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

CAT

Capital Goods industry group

2.31

Group distribution

CAT: 2.31
Max: 2.31
Q3: 1.10
Median: 0.63
Q1: 0.28
Min: 0.00

Largest peers

BA: 8.29
DE: 3.76
CAT: 2.31
GE: 1.13
ETN: 1.10
RTX: 0.57
GEV: 0.25

Where Caterpillar (CAT) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
Current Ratio (MRQ)	1.35	2.12
Debt / Equity (MRQ)	2.31	0.63
Net Debt / EBITDA	2.73	2.03

Dividends

Dividend Yield (TTM)

Caterpillar (CAT) has dividend yield of 0.70%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

CAT

Capital Goods industry group

0.70%

Group distribution

Max: 2.64%
Q3: 1.06%
CAT: 0.70%
Median: 0.14%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 1.40%
DE: 1.11%
ETN: 1.05%
CAT: 0.70%
GE: 0.49%
GEV: 0.14%
BA: 0.00%

Where Caterpillar (CAT) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Caterpillar (CAT) has payout ratio of 29.58%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

CAT

Capital Goods industry group

29.58%

Group distribution

Max: 72.02%
CAT: 29.58%
Q3: 29.57%
Median: 6.31%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 51.03%
ETN: 41.29%
DE: 36.71%
CAT: 29.58%
GE: 19.58%
GEV: 5.11%
BA: 0.00%

Where Caterpillar (CAT) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
Dividend Yield (TTM)	0.70%	0.14%
Dividend Payout Ratio (TTM)	29.58%	6.31%

Valuation

P/E Ratio (TTM)

Caterpillar (CAT) trades at P/E ratio of 43.10, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

CAT

Capital Goods industry group

43.10

Group distribution

Max: 77.51
Q3: 46.30
CAT: 43.10
Median: 31.73
Q1: 22.49
Min: 1.06

Largest peers

BA: 82.58
CAT: 43.10
GE: 40.32
ETN: 39.20
RTX: 36.47
DE: 33.21
GEV: 31.54

Where Caterpillar (CAT) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Caterpillar (CAT) trades at 5.79 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

CAT

Capital Goods industry group

5.79

Group distribution

Max: 9.90
CAT: 5.79
Q3: 4.82
Median: 2.65
Q1: 1.27
Min: 0.05

Largest peers

GEV: 7.36
GE: 6.98
CAT: 5.79
ETN: 5.49
DE: 3.35
RTX: 2.89
BA: 1.75

Where Caterpillar (CAT) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Caterpillar (CAT) trades at 21.97 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

CAT

Capital Goods industry group

21.97

Group distribution

CAT: 21.97
Max: 12.69
Q3: 6.34
Median: 3.69
Q1: 2.01
Min: -4.34

Largest peers

BA: 26.98
CAT: 21.97
GEV: 20.82
GE: 19.69
ETN: 7.93
DE: 5.78
RTX: 3.94

Where Caterpillar (CAT) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
P/E Ratio (TTM)	43.10	31.73
P/S Ratio (TTM)	5.79	2.65
P/B Ratio (MRQ)	21.97	3.69
Free Cash Flow Yield (TTM)	0.92%	2.18%