Caterpillar Inc. (NYSE:CAT) has a beta of 0.96, a 12-month trailing P/E ratio of 29.86. The stock’s Relative Strength Index (RSI) is 56.62, with weekly volatility at 1.79% and ATR at 3.43. The CAT stock’s 52-week price range has touched low of $87.50 and a $183.81 high. Its shares traded higher over the last trading session, gaining 0.64% on 12/24/20. The shares fell to a low of $178.35 before closing at $179.56. Intraday shares traded counted 0.59 million, which was 81.66% higher than its 30-day average trading volume of 3.19M. CAT’s previous close was $178.42 while the outstanding shares total 542.30M.
Investors have identified the Farm & Heavy Construction Machinery company Caterpillar Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $96.93 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Caterpillar Inc. (CAT) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For CAT, the company has in raw cash 9.31 billion on their books with 12.02 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 38.53 billion total, with 24.98 billion as their total liabilities.
CAT were able to record 2.76 billion as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 1.03 billion. In cash movements, the company had a total of 4.25 billion as operating cash flow.
Potential earnings growth for Caterpillar Inc. (CAT)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Caterpillar Inc. recorded a total of 9.88 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -29.12% coming in sequential stages and their sales for the Q3 2020 quarter reducing by -1.17%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 6.92 billion trying to sell their products during the last quarter, with the result yielding a gross income of 2.96 billion. This allows shareholders to hold on to 542.30M with the recently reported earning now reading 1.24 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (1.34 cents a share).
Having a look at the company’s valuation, the company is expected to record 7.39 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CAT sounds very interesting.
Is the stock of CAT attractive?
In related news, Chief Accounting Officer, Marvel Gary Michael sold 2,318 shares of the company’s stock in a transaction that recorded on Dec 04. The sale was performed at an average price of 179.50, for a total value of 416,081. As the sale deal closes, the Chief Accounting Officer, Marvel Gary Michael now sold 4,634 shares of the company’s stock, valued at 802,887. Also, Group President, Johnson Denise C sold 8,894 shares of the company’s stock in a deal that was recorded on Nov 09. The shares were price at an average price of 175.00 per share, with a total market value of 1,556,450. Following this completion of acquisition, the Group President, De Lange Bob now holds 2,500 shares of the company’s stock, valued at 411,900. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
9 out of 23 analysts covering the stock have rated it a Buy, while 9 have maintained a Hold recommendation on Caterpillar Inc.. 2 analysts has assigned a Sell rating on the CAT stock. The 12-month mean consensus price target for the company’s shares has been set at $173.75.