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A look at a High Market Cap Stock: Caterpillar Inc., CAT

Caterpillar Inc., CAT is in the exchange NYSE and its industry is Farm & Construction Machinery in the sector of Industrial Goods. Based in USA, Caterpillar Inc., CAT  has a market cap of 47989.19. Since its IPO date on the 1/2/1962, Caterpillar Inc., CAT performance year to date is 24.60%. Today Caterpillar Inc., CAT has gained -0.06%, with a current price of 81.98.

Ownership of the company is 0.10% for insider ownership while institutional ownership is 70.30%. The management of the company have seen the company have a payout ratio of 163.60%. Return of assets are at 1.40%, with return on investment at 4.80%.

In terms of debt levels and profit levels, Caterpillar Inc., CAT is seeing a long-term debt/equity of 1.57. While Total debt/equity is 2.52. With a profit margin of 2.60%, this is combined with a gross margin of 27.30%, and operating margin of 4.50%. Caterpillar Inc. ability to meet debt levels, with a current ratio of 1.2, while the quick ratio is 0.9.

For the last year Caterpillar Inc., CAT has seen a EPS growth of -40.50%. A performance for the year of 11.78%. The 52-week high is -2.74%, and the 52-week low is 48.29%. The average volume for Caterpillar Inc., CAT is 1252029.

With a target price of 71.06, can Caterpillar Inc., CAT reach this target? Looking at the value indicators of Caterpillar Inc., CAT. Caterpillar Inc. has a P/E of 43.98 and a forward P/E of 23.11. Perhaps the more useful indicator than P/E, is PEG which has a value of 4.28. Caterpillar Inc. also has a P/S and a P/B of 1.15 and 3.15 respectively. For P/cash, Caterpillar Inc. has a value of 7.09, while it is 52.56 for P/free cash flow.

At the current price of 81.98, Caterpillar Inc. has a dividend yield of 3.75%. We see a return on equity of 7.20%.

Looking more long-term Caterpillar Inc., is projected to get an EPS growth for the next five years of 10.27%. In the short-term an EPS growth of 0.88% in the next year is forecasted. This is after a EPS growth of -40.50% for this year and for the last five years a -3.40% growth has been seen.

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.

About the author

Peter Clarke

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