Caterpillar Inc. cash flow to debt ratio of 27.09% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Caterpillar Inc.'s free cash flow has increased 16.49% from $8.82B last year to $10.27B, signaling increasing performance

Caterpillar Inc.'s debt to equity ratio is 2.33, which means that the company's assets are unhealthy financed, signaling financial risk.

Caterpillar Inc.'s debt has increased relative to shareholder equity from 1.97 last year to 2.33 today, signaling weakened financials

Caterpillar Inc. has a net debt to EBITDA ratio of 2.25x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Caterpillar Inc.'s interest coverage ratio of 11.98 indicates that earnings with good margin can cover interest payments on company debt

Caterpillar Inc.'s profit margin has decreased (12.95%) in the last year from 16.65% to 14.50%, signaling decreasing performance

Caterpillar Inc.'s short-term assets of $52.48B exceed its short-term liabilities of $36.56B

Caterpillar Inc.'s return on assets of 10.56% is higher than the 5.00% threshold, indicating efficient asset utilization

Caterpillar Inc.'s return on equity of 54.14%, is higher than 15.00%, indicating good performance

Caterpillar Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Caterpillar Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Caterpillar Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Caterpillar Inc. has a free cash flow yield of 2.66%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Caterpillar Inc.'s yearly earnings has decreased 17.78% since last year from $10.79B to $8.87B, signaling decreasing performance

Caterpillar Inc.'s yearly revenue has increased 4.29% since last year from $64.81B to $67.59B, signaling increasing performance

ROIC 13.30% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Caterpillar Inc.'s 3-year revenue CAGR of 4.38% is positive, indicating growing revenue over the past 3 years

Caterpillar Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Caterpillar Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Caterpillar Inc. is overvalued relative to its fair value price of 318.42 based on Discounted Cash Flow model

Caterpillar Inc. has an earnings yield of 2.81%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Caterpillar Inc. is overvalued relative to its fair value price of 150.94 based on EBITDA multiple model

Caterpillar Inc. has an EV/EBITDA ratio of 28.22x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Caterpillar Inc. is overvalued relative to its fair value price of 441.00 based on Earnings Fair Value model

Caterpillar Inc. has a PEG-ratio over 1 which is considered overvalued

Caterpillar Inc. has a price-to-book ratio of 19.88x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Caterpillar Inc. has a price-to-sales ratio of 5.16x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue