# Caterpillar Inc. (CAT) — Stock CV

Caterpillar Inc. is a $368B industrial company. Revenue grew 18.4% over the last year, it keeps 15¢ of every dollar of sales as profit, and its net debt equals ~2.5 years of free cash flow. It trades at 33.9× earnings — in the most expensive third of its own history.

> Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its reporting segments are construction, resource, energy, and transportation.

## Identity

- **Ticker**: CAT
- **Sector**: Industrials
- **Industry**: Construction Machinery & Equip
- **Headquarters**: IRVING, TX
- **Employees**: 118 000
- **Website**: https://www.caterpillar.com
- **Market cap**: $368B
- **Last price**: $800.47
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $74.7B
- **Net income**: $10.8B
- **Free cash flow**: $10.7B
- **Net debt**: $26.2B
- **P/E**: 33.9
- **Revenue growth (YoY)**: 18.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 30 |
| Growth | 74 |
| Profitability | 85 |
| Health | 67 |
| Quality | 77 |
| Moat | 63 |

## Qualifications (beginner checklist) — 11 of 11 passed

- [x] Revenue growing — +18.4% YoY
- [x] Profitable — $10.8B TTM
- [x] Profit growing — +14.2% YoY
- [x] Generates cash — $10.7B TTM
- [x] Debt under control — ~2.5y of cash flow to repay
- [x] Established company — $368B market cap
- [x] Not printing shares — -13.9% shares over ~5y
- [x] Proven track record — 9/10 profitable years
- [x] Financially stable — Altman Z 4.4 — safe
- [x] Pays a dividend — yield 0.76%
- [x] Valuation not extreme — P/E 33.9

## Experience (career milestones)

- **FY2024** — Best year on record: $10.8B net income
- **FY2018** — Revenue crossed $50B: $54.7B for the year
- **FY2017** — Turned profitable: $754M net income after a loss year
- **FY2016** — Revenue already above $10B: $38.5B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2007** — As ultra-low-sulfur diesel became required in North America, Caterpillar updated the C7 to use common rail…
- **1998** — Caterpillar purchased Perkins Engines of Peterborough, England, a maker of small diesel and gasoline engines
- **1997** — Caterpillar 3116 engine was used up until 1997, when Caterpillar introduced the inline 6 cylinder 7.2 litre…
- **1986** — The company reorganized itself as a Delaware corporation under the current name, Caterpillar Inc
- **1950** — During the postwar construction boom, the company grew at a rapid pace
- **1930** — The new company was headquartered in San Leandro until 1930, when under the terms of the merger, it was moved to Peoria
- **1925** — Caterpillar Inc. traces its origins to the 1925 merger of the Holt Manufacturing Company and the C
- **1916** — The first tanks used in WWI were manufactured by William Foster & Co., also in Lincolnshire, England
- **Oct 25, 1909** — Pliny Holt purchased the factory, and immediately began operations with 12 employees
- **1904** — Contemporaneously, Richard Hornsby & Sons in Grantham, Lincolnshire, England, developed a steel plate-tracked vehicle

## Strengths

- Revenue growing 18.4% year over year
- Interest covered 8.3× by operating earnings
- High returns on invested capital (ROIC 18.7%)
- Altman Z-Score 4.42 — low bankruptcy-risk zone

## Watch-outs

- Loss-making in 1 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $51.0B | $6.49B | $6.11B |
| FY2022 | $59.4B | $6.71B | $6.47B |
| FY2023 | $67.1B | $10.3B | $11.3B |
| FY2024 | $64.8B | $10.8B | $10.0B |
| FY2025 | $67.6B | $8.88B | $8.92B |

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Source: https://stockcv.com/CAT — derived from company filings; may be delayed or incomplete. Information, not investment advice.