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Caterpillar CAT

Caterpillar scores average on business quality (5.1 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$800.47Oct 9, 2026
Business qualityAverage
Next earningsNov 4, 2026, before the open
Insiders, 90 daysSelling

Why it matters

  1. What Caterpillar does

    Caterpillar builds heavy machinery, engines, and industrial equipment, selling primarily to construction, mining, and energy customers through an independent dealer network.

  2. What it does best

    Caterpillar dominates heavy machinery through an unmatched global dealer network that locks in customers with rapid parts delivery and service. Its 54.2% ROE crushes peers like WAB at 11.4% and PCAR at 12.7%, showing exceptional capital returns that take decades to replicate.

  3. The main risk

    With shares trading far above an intrinsic value of $576.85, the risk is severe multiple contraction if cyclical commodity demand slows and revenue growth stalls from its current 4.3% rate.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin stands at 19.4% with a 54.2% ROE placing it in the 91st sector percentile. Profitability is strong and stable, proving the business scales efficiently on its massive revenue base.

MoatFair

A top-decile return on equity of 91st sector percentile anchors its competitive advantage, locking in enterprise contractors with massive scale. Rivals cannot easily replicate its global dealer network within years.

GrowthSlow

Revenue reached $74.7B with a 4.3% growth rate, improving over the 2024 dip to $64.8B but tracking below historical peaks. The machinery engine segment carries the top line forward.

Financial healthFair

Total debt sits at $43.3B against $10.0B in cash, producing a high debt-to-equity ratio of 2.0x and an interest coverage of 7.5x. Free cash flow of $9.0B is solid, but leverage leaves the balance sheet softer.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $26.2M outside pre-planned sales.

Our sealed record on CAT

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is CAT a good business?

Caterpillar scores average on the Cluenex quality check (5.1 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.

Are insiders buying CAT?

In the last 90 days of SEC Form 4 filings: 1 sold $26.2M outside pre-planned sales.

When does CAT report earnings?

Nov 4, 2026, before the open.

For members

See CAT today

  • Today's verdict on CAT, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Caterpillar (CAT)”, https://cluenex.com/stocks/cat/, data as of Oct 10, 2026.