Caterpillar (CAT): analysis in plain words
Is Caterpillar cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Caterpillar (CAT) is listed on the NYSE and we classify it in industrials. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Caterpillar according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Caterpillar (CAT) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $591.30 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 23.2x | Price over earnings per share |
| Revenue growth | +17.3% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 15.2% | Profit for every 100 of sales |
| Net debt / EBITDA | 2.2x | Years of operating profit to repay debt |
| Dividend yield | 1.05% | Annual dividend over price |
| Market cap | $271.8 billion | What the stock market values it at |
The Caterpillar figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any CAT figure that is not available shows as N/A: we do not estimate it.
How Caterpillar makes money
Caterpillar builds heavy equipment and engines. Energy & Transportation, its largest segment, sells engines, turbines and generators for data centers, oil and gas, and locomotives. Construction Industries makes excavators and loaders, Resource Industries supplies mining trucks and equipment, and Financial Products provides customer financing through Cat Financial.
Over the last 12 months, Caterpillar brought in revenue of $77.8 billion. For every 100 it sells, Caterpillar keeps 30.2 after the direct cost of what it sells (gross margin) and 20.5 after all operating costs (operating margin). With 118,000 full-time employees, that is about $659,000 of revenue per employee.
Caterpillar against its sector
To know whether a Caterpillar figure is high or low you have to put it next to similar companies. This table compares Caterpillar with the median of the 20 industrials companies Fintols covers, with data as of November 4, 2026.
| Figure | Caterpillar | industrials median |
|---|---|---|
| P/E | 23.2x | 27.3x (20) |
| Revenue growth | +17.3% | +9.8% (20) |
| Net margin | 15.2% | 13.0% (20) |
| Dividend yield | 1.05% | 1.60% (20) |
| Net debt / EBITDA | 2.2x | 2.1x (20) |
In short, against the typical industrials company, Caterpillar trades on a lower P/E, grows faster and earns a wider margin. By size, Caterpillar ranks number 1 of 15 industrials companies quoted in USD on Fintols.
The bull case for Caterpillar
What works in favour of Caterpillar, according to its figures as of November 4, 2026:
- Caterpillar grew sales +17.3% in its latest quarter against the same quarter a year earlier, while the median industrials company Fintols tracks grew +9.8%.
- Caterpillar earns 56.1% a year on its shareholders' money (return on equity).
- Analysts expect Caterpillar earnings to rise: its P/E on the next 12 months of estimated earnings is 18.3x, below the current 23.2x.
The main risk for Caterpillar
Caterpillar stock sits 45% below its 52-week high ($1,073.46): the market has cut its expectations, and it is worth understanding why first.
On top of that: caterpillar stock moves much more than the market: its beta is 1.64, so in a broad sell-off it tends to fall further than the index.
And, like the rest of industrials, Caterpillar is exposed to the economic cycle: when industry and trade slow, its orders fall.
Frequently asked questions about Caterpillar
Is it a good time to buy Caterpillar stock?
Fintols does not tell you whether to buy or sell Caterpillar, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Caterpillar stock trades at $591.30, 45% below its 52-week high ($1,073.46) and 10% above its low ($537.08). Its P/E is 23.2x against a industrials median of 27.3x, and 18.3x on the earnings analysts expect over the next 12 months. With Caterpillar, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Caterpillar pay a dividend?
Yes. As of November 4, 2026, Caterpillar pays $6.52 per share a year, which at today's price is a yield of 1.05%. It uses 26% of its profit to pay it, which leaves room to keep paying it if profit dips. Its average dividend yield over the last five years is 1.40%. The industrials median on Fintols is 1.60%.
Is Caterpillar stock expensive?
It depends on what you compare it with. On P/E, Caterpillar trades at 23.2x its last 12 months of earnings: cheaper than the industrials median (27.3x). Including its debt, Caterpillar is valued at 18.8x its EBITDA (EV/EBITDA). A high P/E alone does not make Caterpillar expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Caterpillar's competitors?
On Fintols we compare Caterpillar with John Deere, Honeywell and Union Pacific, which are also in industrials. As of November 4, 2026, John Deere is worth $182.4 billion and trades on a P/E of 37.6; Honeywell is worth $72.4 billion and trades on a P/E of 11.3; Union Pacific is worth $183.3 billion and trades on a P/E of 24.1. Each has a side-by-side comparison with Caterpillar below.
Caterpillar competitors
- John Deere (DE) analysis · Caterpillar vs John Deere comparison
- Honeywell (HON) analysis · Caterpillar vs Honeywell comparison
- Union Pacific (UNP) analysis · Caterpillar vs Union Pacific comparison
To understand Caterpillar better
- DCF and WACC Explained: A Practical Valuation Guide
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like Caterpillar: industrials stocks, S&P 500 companies and S&P 100 companies. Open the full CAT analysis with its valuation and scenarios. Educational content about Caterpillar, not investment advice.