Caterpillar is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments - Construction Industries, Resource Industries and Energy & Transportation - and also provides financing and related services through its Financial Products segment. The company was founded in 1925 and is based in Peoria, Illinois.
CAT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CAT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Caterpillar Inc ranked in the 40th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Caterpillar Inc, consider:
The compound growth rate in the free cash flow of Caterpillar Inc over the past 5.52 years is -0.02%; that's higher than only 22.73% of free cash flow generating stocks in the Industrials sector.
Caterpillar Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 7.97% of tickers in our DCF set.
CAT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 7.97% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KEX, OBCI, UNP, AME, and BV can be thought of as valuation peers to CAT, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Caterpillar (CAT): Q2 Non-GAAP EPS of $1.03 beats by $0.31; GAAP EPS of $0.84 beats by $0.12.Revenue of $10B (-30.6% Y/Y) beats by $600M.Operating income of $784M vs. $556.7M consensus.Shares -1.3% PM.Press Release...
DUBLIN--(BUSINESS WIRE)--The "Global Generator Sets Market Outlook to 2025" report has been added to ResearchAndMarkets.com's offering. The generator sets market is negatively affected by the economic downturn, challenges in the oil & gas industry (oil price collapse) and other end-user markets, geopolitical risks, supply chain constraints, trade conflicts, economic uncertainties, among other factors. With the outbreak of the COVID-19 pandemic, there is a sharp pullback in economic activity
DUBLIN, July 30, 2020 /PRNewswire/ -- The "Diesel Power Engine Market by Operation (Standby, Prime, and Peak Shaving), Power Rating (Below 0.5 MW, 0.5-1 MW, 1.0-2 MW, 2.0-5 MW, and Above 5 MW), End User (Industrial, Commercial, and Residential), Speed, and Region - Global Forecast to…
Caterpillar (NYSE: CAT) announces its next round of earnings this Friday, July 31. Here is Benzinga's everything-that-matters guide for this Friday's Q2 earnings announcement.Earnings and Revenue Wall Street expects EPS of $0.64 and sales around $9.38 billion. Caterpillar EPS in the same period a year ago totaled $2.83. Sales were $14.43 billion. If the company were to report in-line earnings when it publishes results Friday, earnings would be down 77.39%. Revenue would have fallen 14.1% from the same quarter last year. Here's how the company's reported EPS has stacked up against analyst estimates in the past:Quarter Q1 2020 Q4 2020 Q3 2019 Q2 2019 EPS Estimate 1.69 2.37 2.89 3.12 EPS Actual 1.60 2.63 2.66 2.83 Revenue Estimate 10.92 B 13.41 B 13.49 B 14.44 B Revenue...
With the Industrial Products Sector's second-quarter earnings anticipated to bear the brunt of weak demand amid the COVID-19 pandemic, let's see how some of the stocks are likely to fare in their upcoming releases.