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

Time Horizon

Risk Tolerance

Symbol
Execute Advice
Caterpillar Inc -- USA Stock  

USD 169.7  0.71  0.42%

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding Caterpillar Inc is 'Strong Buy'.
For the selected time horizon Caterpillar Inc has a risk adjusted performance of 0.3177, jensen alpha of 0.5093, total risk alpha of 0.166, sortino ratio of 0.0 and treynor ratio of 1.76
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 Gross Profit, Earnings Per Share, Z Score, as well as the relationship between Total Debt and Total Asset . Given that Caterpillar Inc has Price to Earning of 114.14 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 Return0.59Value At Risk0.53
Potential Upside2.01Standard Deviation0.84
 Return Density 
      Distribution 

Caterpillar Greeks

α
Alpha over DOW
=0.51
β
Beta against DOW=0.33
σ
Overall volatility
=0.9
Ir
Information ratio =0.43

Caterpillar Volatility Alert

Caterpillar Inc exhibits very low volatility with skewness of 0.52 and kurtosis of -0.12. 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 Equity5.67 % (15.17) %
Return On Asset3.04 % (15.64) %
Profit Margin2.09 % (5.5) %
Operating Margin8.93 % (10.91) %
Current Valuation127.44 B152.14 B
Shares Outstanding594.93 M1.43 B
Shares Owned by Insiders0.15 % 6.91 %
Shares Owned by Institutions70.64 % 18.37 %
Price to Earning114.14 times40.69 times
Price to Book6.49 times14.44 times
Price to Sales2.41 times17.81 times
Revenue42.14 B9.85 B
Gross Profit9.63 B21.75 B
EBITDA6.69 B1.41 B
Net Income882 M517.71 M
Cash and Equivalents8.74 B3.89 B
Cash per Share14.68 times5.17 times
Total Debt35.93 B7.36 B
Debt to Equity228.8 % 0.72 %
Current Ratio1.44 times3.3 times
Book Value Per Share26.27 times13.64 times
Cash Flow from Operations6.79 B1.25 B
Earnings Per Share1.49 times2.3 times
Price to Earnings To Growth0.65 times1.22 times
Number of Employees105.7 K10.67 K
Beta1.60.34
Market Capitalization101.38 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
Current Liabilities26.3 B33.34 B
Z Score1.2708.73
SellBuy
Strong Buy

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

   Sale by Edward Rapp of 13500 shares of Caterpillar [view details]
Risk Adjusted Performance0.3177
Market Risk Adjusted Performance1.77
Mean Deviation0.6524
Coefficient Of Variation141.28
Standard Deviation0.8362
Variance0.6992
Information Ratio0.4329
Jensen Alpha0.5093
Total Risk Alpha0.166
Treynor Ratio1.76
Maximum Drawdown3.09
Value At Risk(0.53)
Potential Upside2.01
Skewness0.5164
Kurtosis(0.12)

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 391.2 Billion. Caterpillar totals roughly 127.44 Billion in current valuation claiming about 33% of equities under Engines And Heavy Machinery industry.