The share price of Caterpillar Inc. [NYSE: CAT] inclined by $140.06, presently trading at $140.12. The company’s shares saw 25.39% gains compared to the lowest price in the period of the last 52 weeks, set at $111.75 recorded on Dec 4, 2019. The last few days have been benevolent to the share price as CAT fall by -3.82% during the last week, even though the stock is still down by -4.05% compared to -5.97 of all time high it touched on 12/02/19. However, the stock had a strong performance during the past 3 months, roughly losing -4.63%, while additionally gaining 0.84% during the last 12 months. Caterpillar Inc. is said to have a 12-month price target set at $143.29. That means that the stock has a strong potential to acquire 3.17% increase from the current trading price.
Caterpillar Inc. [NYSE:CAT]: Analyst Rating and Earnings
Its stock price has been found in the range of 111.75 to 148.47. This is compared to its latest closing price of $140.06.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Mon 27 Jan (In 54 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 11.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, 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,
What about valuation? This company’s Enterprise Value to EBITDA is 9.50 and its Total Debt to EBITDA Value is 3.20. The Enterprise Value to Sales for this firm is now 1.98, 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 13.32. 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 556.32M shares outstanding, amounting to a total market cap of $77.95B. Its stock price has been found in the range of 111.75 to 148.47. At its current price, it has moved down by -5.62% from its 52-week high, and it has moved up 25.39% from its 52-week low.
This stock’s Beta value is currently 1.53, which indicates that it is 1.56% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 48.25. 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.