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Caterpillar Inc. (NYSE: CAT) – Is this large market cap stock undervalued?

Caterpillar Inc. (NYSE: CAT), is firmly in the large market cap category with market cap of 47924.59. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Caterpillar Inc. is 82.22 (with a change from open of -0.05%), this in conjunction with a target price of 73.94. Volume today has so far reached 1907696, with an average volume of about 4336.78. The GAP for this stock, is 0.26%.

The P/E ratio is 43.99, bringing the forward P/E to a value of 23.21. The current EPS for Caterpillar Inc., is 1.87, with a EPS growth for this year coming to a value of -40.50%. Performance has been interesting with performance year to date coming to 24.63%.

Looking further into the growth statistics for Caterpillar Inc., EPS is looking like it will grow 0.97% in the next year. Looking even further it is projected to be 5.56%. Quarter over quarter is -28.80% for EPS growth and for sales growth quarter over quarter it is -16.00%. Looking at past EPS growth statistics we see that for the past five years it has been -3.40%. Sales growth for the past five years has in fact been 2.00%.

Looking at the ownership, we see that the insider ownership is at 0.10% and institutional ownership is 70.80%. Shares outstanding is 584.09, while shares float is at a value of 583.36. Float short for Caterpillar Inc. is 7.10% and the short ratio is 9.55.

In terms of debt, long term debt/equity is 1.57, while the total debt/equity comes to 2.52. The ability to meet these debts, means that the current ratio is 1.2, and the quick ratio is 0.9. The most recent gross margin is 27.30% and their operating margin is 4.50%. The profit margin is 2.60%.

Caterpillar Inc. has seen returns on assets of 1.40%, and on investment, 4.80%. Return on equity is 7.20%. Price/Earnings to growth ratio is 7.92. Price/Sales ratio is at a value of 1.15, with Price/book ratio coming to 3.15 and Price/cash is 7.09, and finally Price/Free cash Flow is 52.49.

The simple moving averages are 0.52% and 13.33% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -2.96% and the 52 week low is 48.73%.

Caterpillar Inc. has a dividend yield of 3.75%, with a current price of 82.22. The ability to pay this means the payout ratio is 163.60%. This is in an industry, Farm & Construction Machinery, with equally high dividends from other companies in this sector, which it is Industrial Goods. Caterpillar Inc. is based in USA.

Performance in the Farm & Construction Machinery industry means that Caterpillar Inc. has seen performance for the past week of 1.56%, with performance for the month coming to -2.80%. Looking at the data for the quarter it is at a value of 9.10%, and for the half year the performance is 15.64%. Volatility for this week is 1.80% and for the month this is 1.45%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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