Caterpillar (CAT) Stock Analysis

June 13, 2026

Here is a fundamental analysis of Caterpillar (CAT), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

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.

Performance at a Glance

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
1-Year Return	154.99%	25.11%

Risk

Drawdown

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.

Risk at a Glance

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
1-Year Volatility	35.25%	41.58%
Beta	1.60	1.19

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	419.40 billion USD
Currency	USD
Exchange	NYSE
Listing Date	January 2, 1962
Security Type	Common Stock

Valuation

Price-to-Earnings Ratio (TTM)

Caterpillar (CAT) trades at P/E ratio of 45.26, 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

45.26

Group distribution

Max: 89.57
Q3: 49.59
CAT: 45.26
Median: 32.68
Q1: 22.67
Min: 6.05

Largest peers

BA: 86.92
CAT: 45.26
GE: 41.65
ETN: 38.30
RTX: 34.50
DE: 32.68
GEV: 27.47

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.

Price-to-Sales Ratio (TTM)

Caterpillar (CAT) trades at 5.93 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

5.93

Group distribution

Max: 10.21
CAT: 5.93
Q3: 4.95
Median: 2.70
Q1: 1.31
Min: 0.05

Largest peers

GE: 7.25
GEV: 6.42
CAT: 5.93
ETN: 5.33
DE: 3.29
RTX: 2.73
BA: 1.87

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.

Price-to-Book Ratio (MRQ)

Caterpillar (CAT) trades at 22.48 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

22.48

Group distribution

CAT: 22.48
Max: 14.00
Q3: 7.07
Median: 3.83
Q1: 2.13
Min: -4.80

Largest peers

BA: 28.86
CAT: 22.48
GE: 18.83
GEV: 18.16
ETN: 7.71
DE: 5.69
RTX: 3.73

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 at a Glance

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
Price-to-Earnings Ratio (TTM)	45.26	32.68
Price-to-Sales Ratio (TTM)	5.93	2.70
Price-to-Book Ratio (MRQ)	22.48	3.83
Free Cash Flow Yield	0.90%	2.07%

Profitability

Return on Equity (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: 46.13%
Q3: 20.05%
Median: 11.19%
Q1: 2.17%
Min: -23.78%

Largest peers

BA: 169.95%
GEV: 75.71%
CAT: 51.33%
GE: 45.43%
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 Profit 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: 11.55%
Median: 5.77%
Q1: 0.30%
Min: -13.94%

Largest peers

GEV: 23.81%
GE: 17.86%
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 Profit 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: 15.85%
Median: 8.19%
Q1: 1.80%
Min: -17.50%

Largest peers

GE: 20.21%
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 at a Glance

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
Return on Equity (TTM)	51.33%	11.19%
Return on Assets (TTM)	8.52%	5.15%
Net Profit Margin (TTM)	13.33%	5.77%
Operating Profit Margin (TTM)	18.18%	8.19%
Gross Profit Margin (TTM)	28.60%	29.80%

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: 2.98
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: 1.01
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-to-Equity Ratio (MRQ)

Caterpillar (CAT) has debt-to-equity ratio of 2.31, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

CAT

Capital Goods industry group

2.31

Group distribution

CAT: 2.31
Max: 2.29
Q3: 1.08
Median: 0.62
Q1: 0.27
Min: 0.00

Largest peers

BA: 8.29
DE: 3.76
CAT: 2.31
GE: 1.17
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 at a Glance

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-to-Equity Ratio (MRQ)	2.31	0.62
Net Debt / EBITDA	2.73	2.03

Dividends

Dividend Yield (TTM)

Caterpillar (CAT) has dividend yield of 0.72%, 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

0.72%

Group distribution

Max: 2.69%
Q3: 1.09%
CAT: 0.72%
Median: 0.20%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 1.51%
DE: 1.12%
ETN: 1.12%
CAT: 0.72%
GE: 0.56%
GEV: 0.21%
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: 29.49%
Median: 6.03%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 51.03%
ETN: 41.29%
DE: 36.71%
CAT: 29.58%
GE: 19.25%
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.

Dividends at a Glance

Caterpillar (CAT) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CAT	Industry group median
Dividend Yield (TTM)	0.72%	0.20%
Dividend Payout Ratio (TTM)	29.58%	6.03%