Caterpillar Inc. [CAT] took an upward turn with a change of 1.20%, trading at the price of $131.85 during the trading session on Thursday. The price movement in correlation with percentage of the mentioned increase can allow a valuable insight to investors. During the last trading session 3.24 million shares changed hands being bought and sold, while Caterpillar Inc. shares have an average trading volume of 4.18M shares for that time period. CAT monthly volatility recorded 2.04%, in the meanwhile having share price volatility for the week set at 2.26%. PS value for CAT stocks is 1.32 with PB recorded at 4.99.
Caterpillar Inc. [NYSE:CAT]: Analyst Rating and Earnings
Its stock price has been found in the range of 111.75 to 159.37. This is compared to its latest closing price of $130.29.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Tue 22 Oct (In 41 Days).
Fundamental Analysis of Caterpillar Inc. [CAT]
Now let’s turn to look at profitability: with a current Operating Margin for Caterpillar Inc. [CAT] sitting at +15.84 and its Gross Margin at +29.87, this company’s Net Margin is now 11.30%. These measurements indicate that Caterpillar Inc. [CAT] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 17.46, and its Return on Invested Capital has reached 12.80%. Its Return on Equity is 44.33, and its Return on Assets is 7.91. These metrics all suggest that Caterpillar Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Caterpillar Inc. [CAT] has generated a Total Debt to Total Equity ratio of 260.37. Similarly, its Total Debt to Total Capital is 72.25, while its Total Debt to Total Assets stands at 46.56. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 21.62, and its Long-Term Debt to Total Capital is 178.08.
What about valuation? This company’s Enterprise Value to EBITDA is 8.56 and its Total Debt to EBITDA Value is 3.20. The Enterprise Value to Sales for this firm is now 1.76, and its Total Debt to Enterprise Value stands at 0.35. Caterpillar Inc. [CAT] has a Price to Book Ratio of 5.21, a Price to Cash Flow Ratio of 11.61 and P/E Ratio of 12.28. These metrics all suggest that Caterpillar Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Caterpillar Inc. [CAT] earns $526,173 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 3.25 and its Total Asset Turnover is 0.70. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.96 and its Current Ratio is 1.37. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Caterpillar Inc. [CAT] has 563.92M shares outstanding, amounting to a total market cap of $73.47B. Its stock price has been found in the range of 111.75 to 159.37. At its current price, it has moved down by -17.27% from its 52-week high, and it has moved up 17.99% from its 52-week low.
This stock’s Beta value is currently 1.50, which indicates that it is 2.26% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 66.26. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Caterpillar Inc. [CAT] a Reliable Buy?
Shares of Caterpillar Inc. [CAT], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.