Caterpillar Earnings Per Share vs. Short Ratio
| CAT Stock | USD 357.93 0.39 0.11% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.22 | 0.3497 |
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| Operating Profit Margin | 0.22 | 0.2062 |
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| Pretax Profit Margin | 0.2 | 0.1946 |
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For Caterpillar profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Caterpillar to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Caterpillar utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Caterpillar's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Caterpillar over time as well as its relative position and ranking within its peers.
Caterpillar |
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 20.12 | 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.
Caterpillar Short Ratio vs. Earnings Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Caterpillar's current stock value. Our valuation model uses many indicators to compare Caterpillar value to that of its competitors to determine the firm's financial worth. Caterpillar is rated third in earnings per share category among related companies. It is rated third in short ratio category among related companies fabricating about 0.31 of Short Ratio per Earnings Per Share. The ratio of Earnings Per Share to Short Ratio for Caterpillar is roughly 3.27 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Caterpillar by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Caterpillar's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Caterpillar's earnings, one of the primary drivers of an investment's value.Caterpillar Short Ratio vs. Earnings Per Share
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Caterpillar |
| = | 20.12 X |
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Short Ratio is typically used by traders and speculators to identify trends in current market sentiment for a particular equity instrument. In its simple terms this ratio shows how many days it will take all current short sellers to cover their positions if the price of a stock begins to rise.
Caterpillar |
| = | 6.16 X |
The higher the Short Ratio, the longer it would take to buy back the borrowed shares. In theory, the more short positions are currently outstanding, the faster it will be to cover shorted positions.
Caterpillar Short Ratio Comparison
Caterpillar is currently under evaluation in short ratio category among related companies.
Caterpillar Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Caterpillar, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Caterpillar will eventually generate negative long term returns. The profitability progress is the general direction of Caterpillar's change in net profit over the period of time. It can combine multiple indicators of Caterpillar, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.8 B | -1.9 B | |
| Operating Income | 13.8 B | 14.5 B | |
| Income Before Tax | 13.1 B | 13.7 B | |
| Total Other Income Expense Net | -776 M | -737.2 M | |
| Net Income | 10.3 B | 10.9 B | |
| Income Tax Expense | 2.8 B | 2.9 B | |
| Net Income Applicable To Common Shares | 7.7 B | 8.1 B | |
| Net Income From Continuing Ops | 10.3 B | 10.8 B | |
| Non Operating Income Net Other | 1.5 B | 1.6 B | |
| Interest Income | 494 M | 497 M | |
| Net Interest Income | -17 M | -17.9 M | |
| Change To Netincome | 739.5 M | 964.5 M | |
| Net Income Per Share | 20.24 | 21.25 | |
| Income Quality | 1.25 | 1.31 | |
| Net Income Per E B T | 0.79 | 0.98 |
Caterpillar Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Caterpillar. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Caterpillar position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Caterpillar's important profitability drivers and their relationship over time.
Use Caterpillar in pair-trading
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.Caterpillar Pair Trading
Caterpillar Pair Trading Analysis
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.Use Investing Themes to Complement your Caterpillar position
In addition to having Caterpillar in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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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To fully project Caterpillar's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Caterpillar at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Caterpillar's income statement, its balance sheet, and the statement of cash flows.