CaterpillarStock Price and Value Analysis

Should you buy Caterpillar stock? (NYSE:CAT). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is a well-established bedrock.
  • This company has stable growth.
  • This company has an average dividend yield.
  • This stock looks overpriced.
  • This company is making money at a modest rate.

CAT Free Cash Flow Trend

Based on historical returns, we believe that Caterpillar can grow its free cash at a rate of about 4%. That's positive!

Free Cash Flow trendline for CAT
Free Cash Flow trendline for Caterpillar

Inside the CAT Numbers

CAT Price
(Caterpillar stock price per share)
$143.86
[?] CAT Fair Price
(based on intrinsic value)
$113.53
[?] CAT Safety Price (based on a variable margin of safety) $96.50
[?] PE Ratio versus Sector 634% higher than other Industrial Goods stocks
[?] PE Ratio versus Industry 447% higher than other Farm & Construction Machinery stocks
[?] Cash Yield 9.17%
[?] Free Cash Flow Jitter 24%
[?] Dividend Yield 2%

Is Caterpillar Stock on Sale?

We believe that Caterpillar may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Caterpillar looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy CAT Stock?

Does Caterpillar have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.