NYSE · Industrials

Caterpillar Inc.

CAT · Farm & Heavy Construction Machinery

$874.59

▼ -15.08 (-1.7%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Caterpillar Inc. at $874.59.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability B

Gross Profit Margin 31.8%

Operating Margin 16.5%

Net Income Margin 13.1%

Fin. Health C

Years to Pay Off Debt 4.9 yrs

Working Capital vs Long-Term Debt -$14.8B

Working Capital $15.9B

Valuation F

Margin of Safety 0.0%

Price-to-Book 19.09x

Cash Flow C

Free Cash Flow $7.5B

CapEx % of Net Income 48.2%

Owner Earnings $15.4B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $406.9B

Enterprise Value $452.0B

P/E (TTM) 43.49

Dividend Yield 0.68%

Exchange NYSE

Key Margins

Gross Profit 31.8%

Operating Margin 16.5%

Net Margin 13.1%

Company Info

Sector Industrials

Industry Farm & Heavy Construction Machinery

Employees 118000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Caterpillar Inc. at $874.59.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $874.59, the stock trades at a 528% premium to its Graham Number of $139.25. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Caterpillar Inc.

Caterpillar Inc. provides construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. The Construction Industries segment offers asphalt pavers, cold planers, compactors, forestry machines, material handlers, motor graders, pipelayers, road reclaimers, telehandlers, track-type tractors, and track and wheel excavators; backhoe, compact track, skid steer, track-type, and wheel loaders; and related parts and work tools. Its Resource Industries segment provides electric rope and hydraulic shovels, draglines, rotary drills, hard rock vehicles, mining trucks, wheel loaders, off-highway and articulated trucks, wide-body trucks, wheel tractor scrapers and dozers, and landfill and soil compactors; machinery components, and wear and maintenance components; and technology products and services for fleet management, equipment management analytics, autonomous machine capabilities, safety services, and mining performance solutions. The Energy & Transportation segment offers reciprocating engine powered generator sets; reciprocating engines, drivetrain, and integrated systems and solutions; centrifugal gas compressors and related services; and diesel-electric locomotive components, and other rail-related products. Its Financial Products segment provides operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, working capital loans, and wholesale financing; and insurance and risk management products and services. The All Other segment offers parts distribution; logistics and distribution services; electronics and control systems; dealer portfolio management; brand management and marketing strategy; and digital investment services. It also provides mining software solutions. The company was formerly known as Caterpillar Tractor Co. Caterpillar Inc. was incorporated in 1925 and is headquartered in Irving, Texas.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	31.8% ▼	36.0%	34.7%	29.5%	N/A
Operating Margin %	16.5% ▼	20.2%	19.3%	14.9%	N/A
Net Income %	13.1% ▼	16.7%	15.4%	11.3%	N/A
Diluted EPS	18.81 ▼	22.05	20.12	12.64	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$98.6B	$87.8B	$87.5B	$81.9B	N/A
Total Debt	$43.3B ↑	$38.4B	$37.9B	$37.0B	N/A
Working Capital	$15.9B ▲	$13.4B	$12.2B	$12.3B	N/A
Years to Pay Debt	4.88	3.56	3.67	5.52	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$7.5B ▼	$8.8B	$9.8B	$5.2B	N/A
Owner Earnings	$15.4B	$16.2B	$15.6B	$11.5B	N/A
CapEx % of Net Income	48.2%	29.8%	29.9%	38.8%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	66,676	116,381	87,117	-167,560
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	14,027,000	15,446,000	15,296,000	12,124,000
Total Unusual Items	278,000	592,000	409,000	-710,000
Total Unusual Items Excluding Goodwill	278,000	592,000	409,000	-710,000
Net Income From Continuing Operation Net Minority Interest	8,884,000	10,792,000	10,335,000	6,705,000
Reconciled Depreciation	2,262,000	2,153,000	2,144,000	2,219,000
Reconciled Cost Of Revenue	46,111,000	41,485,000	43,797,000	41,915,000
EBITDA	14,305,000	16,038,000	15,705,000	11,414,000
EBIT	12,043,000	13,885,000	13,561,000	9,195,000
Net Interest Income	-502,000	-512,000	-511,000	-443,000
Interest Expense	502,000	512,000	511,000	443,000
Interest Income		482,000	494,000	167,000	80,000
Normalized Income	8,672,676	10,316,381	10,013,117	7,247,440
Net Income From Continuing And Discontinued Operation	8,884,000	10,792,000	10,335,000	6,705,000
Total Expenses	56,438,000	51,737,000	54,094,000	50,598,000
Total Operating Income As Reported	11,151,000	13,072,000	12,966,000	7,904,000
Diluted Average Shares	472,300	489,400	513,600	530,400
Basic Average Shares	470,000	486,700	510,600	526,900
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	8,884,000	10,792,000	10,335,000	6,705,000
Net Income Common Stockholders	8,884,000	10,792,000	10,335,000	6,705,000
Net Income	8,884,000	10,792,000	10,335,000	6,705,000
Minority Interests	2,000	4,000	3,000	1,000
Net Income Including Noncontrolling Interests	8,882,000	10,788,000	10,332,000	6,704,000
Net Income Continuous Operations	8,882,000	10,788,000	10,332,000	6,704,000
Earnings From Equity Interest Net Of Tax	109,000	44,000	63,000	19,000
Tax Provision	2,768,000	2,629,000	2,781,000	2,067,000
Pretax Income	11,541,000	13,373,000	13,050,000	8,752,000
Other Income Expense	892,000	813,000	595,000	366,000
Other Non Operating Income Expenses	614,000	221,000	186,000	1,076,000
Special Income Charges		0	0	-925,000	0
Impairment Of Capital Assets		0	0	925,000	0
Gain On Sale Of Security	278,000	592,000	409,000	215,000
Net Non Operating Interest Income Expense	-502,000	-512,000	-511,000	-443,000
Interest Expense Non Operating	502,000	512,000	511,000	443,000
Interest Income Non Operating		482,000	494,000	167,000	80,000
Operating Income	11,151,000	13,072,000	12,966,000	8,829,000
Operating Expense	10,327,000	10,252,000	10,297,000	8,683,000
Other Operating Expenses	1,194,000	1,478,000	1,818,000	1,218,000
Research And Development	2,148,000	2,107,000	2,108,000	1,814,000
Selling General And Administration	6,985,000	6,667,000	6,371,000	5,651,000
Gross Profit	21,478,000	23,324,000	23,263,000	17,512,000
Cost Of Revenue	46,111,000	41,485,000	43,797,000	41,915,000
Total Revenue	67,589,000	64,809,000	67,060,000	59,427,000
Operating Revenue	67,589,000	64,809,000	67,060,000	59,427,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	349,607	336,963	315,517	298,549
Ordinary Shares Number	465,287	477,932	499,377	516,345
Share Issued	814,895	814,895	814,895	814,895
Net Debt	33,344,000	31,623,000	30,961,000	30,101,000
Total Debt	43,330,000	38,409,000	37,878,000	36,993,000
Tangible Book Value	15,756,000	13,851,000	13,622,000	9,823,000
Invested Capital	64,642,000	58,003,000	57,433,000	52,974,000
Working Capital	15,927,000	13,410,000	12,221,000	12,254,000
Net Tangible Assets	15,756,000	13,851,000	13,622,000	9,823,000
Capital Lease Obligations	6,000	-103,000	-61,000	-112,000
Common Stock Equity	21,318,000	19,491,000	19,494,000	15,869,000
Total Capitalization	52,008,000	46,945,000	44,027,000	41,695,000
Total Equity Gross Minority Interest	21,318,000	19,494,000	19,503,000	15,891,000
Minority Interest	0	3,000	9,000	22,000
Stockholders Equity	21,318,000	19,491,000	19,494,000	15,869,000
Gains Losses Not Affecting Retained Earnings	-1,772,000	-2,471,000	-1,820,000	-2,457,000
Other Equity Adjustments	-1,772,000	-2,471,000	-1,820,000	-2,457,000
Treasury Stock	49,539,000	44,331,000	36,339,000	31,748,000
Retained Earnings	65,448,000	59,352,000	51,250,000	43,514,000
Capital Stock	7,181,000	6,941,000	6,403,000	6,560,000
Common Stock	7,181,000	6,941,000	6,403,000	6,560,000
Total Liabilities Net Minority Interest	77,267,000	68,270,000	67,973,000	66,052,000
Total Non Current Liabilities Net Minority Interest	40,709,000	35,998,000	33,245,000	34,521,000
Other Non Current Liabilities	6,175,000	4,890,000	4,675,000	4,604,000
Employee Benefits	3,838,000	3,757,000	4,098,000	4,203,000
Non Current Pension And Other Postretirement Benefit Plans	3,838,000	3,757,000	4,098,000	4,203,000
Long Term Debt And Capital Lease Obligation	30,696,000	27,351,000	24,472,000	25,714,000
Long Term Capital Lease Obligation	6,000	-103,000	-61,000	-112,000
Long Term Debt	30,690,000	27,454,000	24,533,000	25,826,000
Current Liabilities	36,558,000	32,272,000	34,728,000	31,531,000
Other Current Liabilities	2,798,000	2,909,000	3,123,000	2,690,000
Current Deferred Liabilities	3,314,000	2,322,000	1,929,000	1,860,000
Current Deferred Revenue	3,314,000	2,322,000	1,929,000	1,860,000
Current Debt And Capital Lease Obligation	12,634,000	11,058,000	13,406,000	11,279,000
Current Debt	12,634,000	11,058,000	13,406,000	11,279,000
Other Current Borrowings	7,120,000	6,665,000	8,763,000	5,322,000
Commercial Paper	5,408,000	3,946,000	4,069,000	5,455,000
Current Notes Payable	106,000	447,000	574,000	502,000
Payables And Accrued Expenses	17,812,000	15,983,000	16,270,000	15,702,000
Current Accrued Expenses	8,141,000	7,634,000	7,715,000	6,393,000
Payables	9,671,000	8,349,000	8,555,000	9,309,000
Dividends Payable	703,000	674,000	649,000	620,000
Accounts Payable	8,968,000	7,675,000	7,906,000	8,689,000
Total Assets	98,585,000	87,764,000	87,476,000	81,943,000
Total Non Current Assets	46,100,000	42,082,000	40,527,000	38,158,000
Other Non Current Assets	6,102,000	5,302,000	5,257,000	4,593,000
Non Current Deferred Assets	2,882,000	3,312,000	2,816,000	2,213,000
Non Current Deferred Taxes Assets	2,882,000	3,312,000	2,816,000	2,213,000
Non Current Accounts Receivable	16,414,000	14,467,000	13,902,000	13,278,000
Goodwill And Other Intangible Assets	5,562,000	5,640,000	5,872,000	6,046,000
Other Intangible Assets	241,000	399,000	564,000	758,000
Goodwill	5,321,000	5,241,000	5,308,000	5,288,000
Net PPE	15,140,000	13,361,000	12,680,000	12,028,000
Accumulated Depreciation	-16,766,000	-16,116,000	-15,943,000	-16,036,000
Gross PPE	31,906,000	29,477,000	28,623,000	28,064,000
Construction In Progress	2,092,000	1,751,000	1,259,000	1,020,000
Other Properties	6,004,000	5,701,000	5,837,000	5,568,000
Machinery Furniture Equipment	15,433,000	14,132,000	13,757,000	13,838,000
Buildings And Improvements	7,761,000	7,281,000	7,154,000	7,016,000
Land And Improvements	616,000	612,000	616,000	622,000
Current Assets	52,485,000	45,682,000	46,949,000	43,785,000
Other Current Assets	2,801,000	3,119,000	4,586,000	2,642,000
Prepaid Assets				2,642,000	2,788,000
Inventory	18,135,000	16,827,000	16,565,000	16,270,000
Finished Goods	8,725,000	8,329,000	8,308,000	8,138,000
Work In Process	1,598,000	1,438,000	1,411,000	1,452,000
Raw Materials	7,812,000	7,060,000	6,846,000	6,680,000
Receivables	21,569,000	18,847,000	18,820,000	17,869,000
Other Receivables					8,898,000
Accounts Receivable	21,569,000	18,847,000	18,820,000	17,869,000
Cash Cash Equivalents And Short Term Investments	9,980,000	6,889,000	6,978,000	7,004,000
Cash And Cash Equivalents	9,980,000	6,889,000	6,978,000	7,004,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	7,453,000	8,820,000	9,793,000	5,167,000
Repurchase Of Capital Stock	-5,206,000	-7,697,000	-4,975,000	-4,230,000
Repayment Of Debt	-8,081,000	-9,316,000	-6,318,000	-7,728,000
Issuance Of Debt	11,105,000	10,283,000	8,257,000	6,674,000
Issuance Of Capital Stock		20,000	12,000	51,000	135,000
Capital Expenditure	-4,286,000	-3,215,000	-3,092,000	-2,599,000
End Cash Position	9,986,000	6,896,000	6,985,000	7,013,000
Beginning Cash Position	6,896,000	6,985,000	7,013,000	9,263,000
Effect Of Exchange Rate Changes	-43,000	-106,000	-110,000	-194,000
Changes In Cash	3,133,000	17,000	82,000	-2,056,000
Financing Cash Flow	-3,899,000	-9,565,000	-6,932,000	-7,281,000
Cash Flow From Continuing Financing Activities	-3,899,000	-9,565,000	-6,932,000	-7,281,000
Net Other Financing Charges	-74,000	-41,000		-10,000	-4,000
Cash Dividends Paid	-2,749,000	-2,646,000	-2,563,000	-2,440,000
Common Stock Dividend Paid	-2,749,000	-2,646,000	-2,563,000	-2,440,000
Net Common Stock Issuance	-5,206,000	-7,677,000	-4,963,000	-4,179,000
Common Stock Payments	-5,206,000	-7,697,000	-4,975,000	-4,230,000
Common Stock Issuance		20,000	12,000	51,000	135,000
Net Issuance Payments Of Debt	4,130,000	799,000	594,000	-652,000
Net Short Term Debt Issuance	1,106,000	-168,000	-1,345,000	402,000
Net Long Term Debt Issuance	3,024,000	967,000	1,939,000	-1,054,000
Long Term Debt Payments	-8,081,000	-9,316,000	-6,318,000	-7,728,000
Long Term Debt Issuance	11,105,000	10,283,000	8,257,000	6,674,000
Investing Cash Flow	-4,707,000	-2,453,000	-5,871,000	-2,541,000
Cash Flow From Continuing Investing Activities	-4,707,000	-2,453,000	-5,871,000	-2,541,000
Net Other Investing Changes	-1,668,000	-1,525,000	-967,000	9,000
Net Investment Purchase And Sale	517,000	1,626,000	-2,589,000	-782,000
Sale Of Investment	2,494,000	3,155,000	1,891,000	2,383,000
Purchase Of Investment	-1,977,000	-1,529,000	-4,480,000	-3,165,000
Net Business Purchase And Sale	22,000	-61,000	-4,000	1,000
Sale Of Business	22,000			1,000	36,000
Purchase Of Business		-61,000	-4,000
Net PPE Purchase And Sale	708,000	722,000	781,000	830,000
Sale Of PPE	708,000	722,000	781,000	830,000
Capital Expenditure Reported	-4,286,000	-3,215,000	-3,092,000	-2,599,000
Operating Cash Flow	11,739,000	12,035,000	12,885,000	7,766,000
Cash Flow From Continuing Operating Activities	11,739,000	12,035,000	12,885,000	7,766,000
Change In Working Capital	-348,000	-859,000	151,000	-1,800,000
Change In Other Working Capital	1,933,000	370,000	80,000	768,000
Change In Other Current Liabilities	-294,000	-104,000	439,000	-754,000
Change In Other Current Assets	-176,000	-97,000	-95,000	-210,000
Change In Payables And Accrued Expense	1,804,000	-454,000	528,000	1,205,000
Change In Accrued Expense	625,000	-172,000	1,282,000	407,000
Change In Payable	1,179,000	-282,000	-754,000	798,000
Change In Account Payable	1,179,000	-282,000	-754,000	798,000
Change In Inventory	-1,477,000	-414,000	-364,000	-2,589,000
Change In Receivables	-2,138,000	-160,000	-437,000	-220,000
Other Non Cash Items	742,000	564,000	375,000	701,000
Asset Impairment Charge		0	0	925,000	0
Deferred Tax	465,000	-621,000	-592,000	-377,000
Deferred Income Tax	465,000	-621,000	-592,000	-377,000
Depreciation Amortization Depletion	2,262,000	2,153,000	2,144,000	2,219,000
Depreciation And Amortization	2,262,000	2,153,000	2,144,000	2,219,000
Operating Gains Losses	-264,000	10,000	475,000	-606,000
Pension And Employee Benefit Expense	-294,000	-154,000	-97,000	-606,000
Gain Loss On Sale Of Business	30,000	164,000	572,000	0
Net Income From Continuing Operations	8,882,000	10,788,000	10,332,000	6,704,000

These metrics estimate what Caterpillar Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$139.25

Margin of Safety

Market Cap ÷ Company Value

2.44

P/B Ratio

19.09

Warren's Owner Earnings

$15.4B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$67.6B

vs > $1.5B revenue

❌ Strong Financial Condition

1.44x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

0.68%

vs Uninterrupted dividends

✅ Earnings Growth

+48.8% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

43.5x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

19.09x P/B (P/E×P/B: 830.2)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-53.26

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$266.29

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	48.2%	29.8%	29.9%	38.8%	N/A
Repurchase of Capital Stock	-$5.2B	-$7.7B	-$5.0B	-$4.2B	N/A
Free Cash Flow	$7.5B ▼	$8.8B ▼	$9.8B ▲	$5.2B •	N/A •
Warren's Owner Earnings	$15.4B	$16.2B	$15.6B	$11.5B	N/A

Peers & Industry

No auto-detected peers for Farm & Heavy Construction Machinery. You can manually compare CAT against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.22%

Low — management has little skin in the game

Return on Equity (ROE)

41.7%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

9.0%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$5.2B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+12.8% YoY

Debt is growing — management is leveraging up

Leadership Team

David Thomas Walton

Senior Vice President

Age 63

Damien Giraud

Senior Vice President

Marcel Cameron

Senior Vice President

Rob Hoenes

Senior Vice President

Jason Kaiser

Group President

Age 46

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.97%	46,385,185
Blackrock Inc.	7.78%	36,208,775
State Street Corporation	7.61%	35,388,550
State Farm Mutual Automobile Insurance Co	3.75%	17,431,190
Geode Capital Management, LLC	2.28%	10,610,182
Fisher Asset Management, LLC	2.04%	9,493,266
Morgan Stanley	1.52%	7,075,119
Bank of America Corporation	1.45%	6,738,802

Risk Analysis

Beta (Market Risk)

1.62

High volatility — moves more than the market

Short Interest

1.6% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

2.31x

High leverage — significant financial risk

Current Ratio

1.35x

Adequate liquidity

52-Week Price Range

Low: $318.11 Current: $874.59 High: $905.00

Currently at 95% of 52-week range

360investing

Caterpillar Inc.

Metric Explanations

Full Graham Analysis

About Caterpillar Inc.

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Graham's Fair Value

Warren's Owner Earnings

Graham's 7 Criteria

Graham's 7 Criteria — Explained

Net Current Asset Value

Earnings Power Value

Cash Flow Analysis

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis