Caterpillar Buy or Sell Recommendation

Macroaxis provides Caterpillar Inc buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Caterpillar positions. The advice algorithm takes into account all of Caterpillar Inc available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from Caterpillar buy-and-hold prospective. Check also Caterpillar Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with current analyst consensus

Investment Horizon

  

Risk Tolerance

  
Symbol
Execute Advice
Caterpillar Inc -- USA Stock  

USD 131.82  0.46  0.35%

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding Caterpillar Inc is 'Strong Sell'.
For the selected time horizon Caterpillar Inc has a mean deviation of 0.4, standard deviation of 0.4823, variance of 0.2326, downside variance of 0.143, semi variance of (0.17) and expected short fall of (0.51)
Macroaxis provides buy, hold, or sell suggestion on Caterpillar Inc to complement and cross-verify current analyst consensus on Caterpillar Inc. Our buy, hold, or sell recommendation engine determines the organization potential to grow exclusively from the prospective of investors current risk tolerance and investing horizon. To make sure Caterpillar is not overpriced, please confirm all Caterpillar Inc fundamentals including its Revenue, Cash Flow from Operations, Current Asset, as well as the relationship between Cash per Share and Beta . Given that Caterpillar Inc has Price to Earning of 733.46 times, we suggest you validate Caterpillar Inc market performance and probability of bankruptcy to make sure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Returns Distribution Density

Mean Return0.23Value At Risk-0.4152
Potential Upside1.0325Standard Deviation0.4823
 Return Density 
      Distribution 

Caterpillar Greeks

α
Alpha over DOW
=0.23
βBeta against DOW=0.02
σ
Overall volatility
=0.48
 IrInformation ratio =0.0853

Caterpillar Volatility Alert

Caterpillar Inc exhibits very low volatility with skewness of 0.1 and kurtosis of -0.6. However, we advise investors to further study Caterpillar Inc technical indicators to make sure all market info is available and is reliable.
    
 Better Than Average     
    
 Worse Than Average Compare Caterpillar to competition
FundamentalsCaterpillarPeer Average
Return On Equity0.77 % (15.17) %
Return On Asset2.29 % (15.64) %
Profit Margin0.27 % (5.5) %
Operating Margin7.19 % (10.91) %
Current Valuation101.97 B152.14 B
Shares Outstanding590.97 M1.43 B
Shares Owned by Insiders0.16 % 6.91 %
Shares Owned by Institutions71.1 % 18.37 %
Number of Shares Shorted20.83 M3.24 M
Price to Earning733.46 times40.69 times
Price to Book5.54 times14.44 times
Price to Sales1.95 times17.81 times
Revenue39.89 B9.85 B
Gross Profit9.63 B21.75 B
EBITDA5.84 B1.41 B
Net Income106 M517.71 M
Cash and Equivalents8.93 B3.89 B
Cash per Share15.1 times5.17 times
Total Debt37.19 B7.36 B
Debt to Equity264.1 % 0.72 %
Current Ratio1.32 times3.3 times
Book Value Per Share23.7 times13.64 times
Cash Flow from Operations6.73 B1.25 B
Short Ratio4.9 times2.09 times
Earnings Per Share0.18 times2.3 times
Price to Earnings To Growth0.69 times1.22 times
Number of Employees105.7 K10.67 K
Beta1.560.34
Market Capitalization77.59 B29.78 B
Total Asset78.5 B126.86 B
Retained Earnings27.38 B38.24 B
Working Capital8.12 B3.58 B
Current Asset34.42 B36.8 B
SellBuy
Strong Sell

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

   Caterpillar exotic insider transaction detected [view details]
Risk Adjusted Performance0.1363
Market Risk Adjusted Performance(12.68)
Mean Deviation0.4
Downside Deviation0.3782
Coefficient Of Variation205.57
Standard Deviation0.4823
Variance0.2326
Information Ratio0.0853
Jensen Alpha0.2279
Total Risk Alpha(0.1)
Sortino Ratio0.1088
Treynor Ratio(12.69)
Maximum Drawdown1.79
Value At Risk(0.42)
Potential Upside1.03
Downside Variance0.143
Semi Variance(0.17)
Expected Short fall(0.51)
Skewness0.1045
Kurtosis(0.6)

Current Valuation

Caterpillar Current Valuation Analysis
Caterpillar Inc is rated third in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Engines And Heavy Machinery industry is currently estimated at about 253.25 Billion. Caterpillar totals roughly 101.97 Billion in current valuation claiming about 40% of equities under Engines And Heavy Machinery industry.