Caterpillar Stock Z Score
| CAT Stock | USD 363.25 5.64 1.58% |
Caterpillar |
Caterpillar Company Z Score Analysis
Caterpillar's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
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To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
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In accordance with the company's disclosures, Caterpillar has a Z Score of 0.0. This is 100.0% lower than that of the Machinery sector and about the same as Industrials (which currently averages 0.0) industry. The z score for all United States stocks is 100.0% higher than that of the company.
Caterpillar ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Caterpillar's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Caterpillar's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Caterpillar Institutional Holders
Institutional Holdings refers to the ownership stake in Caterpillar that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Caterpillar's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Caterpillar's value.| Shares | Norges Bank | 2023-12-31 | 5.6 M | Fmr Inc | 2023-12-31 | 5.5 M | Bank Of America Corp | 2023-12-31 | 4.7 M | Legal & General Group Plc | 2023-12-31 | 3.8 M | Bank Of New York Mellon Corp | 2023-12-31 | 3.8 M | Charles Schwab Investment Management Inc | 2023-12-31 | 3.3 M | Amundi | 2023-12-31 | 3.2 M | Amvescap Plc. | 2023-12-31 | 3 M | Dimensional Fund Advisors, Inc. | 2023-12-31 | 2.8 M | Vanguard Group Inc | 2023-12-31 | 48.4 M | State Street Corporation | 2023-12-31 | 37.7 M |
Caterpillar Fundamentals
| Return On Equity | 0.58 | ||||
| Return On Asset | 0.1 | ||||
| Profit Margin | 0.15 % | ||||
| Operating Margin | 0.19 % | ||||
| Current Valuation | 209.04 B | ||||
| Shares Outstanding | 499.38 M | ||||
| Shares Owned By Insiders | 0.20 % | ||||
| Shares Owned By Institutions | 72.40 % | ||||
| Number Of Shares Shorted | 13.06 M | ||||
| Price To Earning | 17.15 X | ||||
| Price To Book | 9.37 X | ||||
| Price To Sales | 2.72 X | ||||
| Revenue | 67.06 B | ||||
| Gross Profit | 15.56 B | ||||
| EBITDA | 15.97 B | ||||
| Net Income | 10.34 B | ||||
| Cash And Equivalents | 7 B | ||||
| Cash Per Share | 14.27 X | ||||
| Total Debt | 38.45 B | ||||
| Debt To Equity | 2.34 % | ||||
| Current Ratio | 1.41 X | ||||
| Book Value Per Share | 39.04 X | ||||
| Cash Flow From Operations | 12.88 B | ||||
| Short Ratio | 6.16 X | ||||
| Earnings Per Share | 20.13 X | ||||
| Price To Earnings To Growth | 2.10 X | ||||
| Target Price | 325.31 | ||||
| Number Of Employees | 113.2 K | ||||
| Beta | 1.16 | ||||
| Market Capitalization | 178.58 B | ||||
| Total Asset | 87.48 B | ||||
| Retained Earnings | 51.25 B | ||||
| Working Capital | 12.22 B | ||||
| Current Asset | 34.42 B | ||||
| Current Liabilities | 26.3 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 2.42 % | ||||
| Net Asset | 87.48 B | ||||
| Last Dividend Paid | 5.1 |
About Caterpillar Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Caterpillar's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Caterpillar using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Caterpillar based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Caterpillar Investors Sentiment
The influence of Caterpillar's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Caterpillar. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Caterpillar's public news can be used to forecast risks associated with an investment in Caterpillar. The trend in average sentiment can be used to explain how an investor holding Caterpillar can time the market purely based on public headlines and social activities around Caterpillar. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Caterpillar's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Caterpillar's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Caterpillar's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Caterpillar.
Caterpillar Implied Volatility | 76.95 |
Caterpillar's implied volatility exposes the market's sentiment of Caterpillar stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Caterpillar's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Caterpillar stock will not fluctuate a lot when Caterpillar's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Caterpillar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Caterpillar's short interest history, or implied volatility extrapolated from Caterpillar options trading.
Pair Trading with Caterpillar
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Caterpillar position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Caterpillar will appreciate offsetting losses from the drop in the long position's value.Moving against Caterpillar Stock
| 0.87 | TWI | Titan International Financial Report 1st of May 2024 | PairCorr |
| 0.85 | LNN | Lindsay Financial Report 4th of July 2024 | PairCorr |
| 0.81 | LEV | Lion Electric Corp Financial Report 14th of May 2024 | PairCorr |
| 0.79 | ZEVYW | Lightning eMotors | PairCorr |
| 0.73 | MNTX | Manitex International Financial Report 2nd of May 2024 | PairCorr |
The ability to find closely correlated positions to Caterpillar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Caterpillar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Caterpillar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Caterpillar to buy it.
The correlation of Caterpillar is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Caterpillar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Caterpillar moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Caterpillar can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Caterpillar Piotroski F Score and Caterpillar Valuation analysis. For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.Note that the Caterpillar information on this page should be used as a complementary analysis to other Caterpillar's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Caterpillar Stock analysis
When running Caterpillar's price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.
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Is Caterpillar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Caterpillar. If investors know Caterpillar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Caterpillar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.893 | Dividend Share 5.1 | Earnings Share 20.13 | Revenue Per Share 131.336 | Quarterly Revenue Growth 0.029 |
The market value of Caterpillar is measured differently than its book value, which is the value of Caterpillar that is recorded on the company's balance sheet. Investors also form their own opinion of Caterpillar's value that differs from its market value or its book value, called intrinsic value, which is Caterpillar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Caterpillar's market value can be influenced by many factors that don't directly affect Caterpillar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Caterpillar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Caterpillar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Caterpillar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.