Caterpillar Inc. (CAT)
Caterpillar is the world's leading manufacturer of construction and mining equipment, recognisable by its iconic yellow machines found on building sites globally.
Is Caterpillar Inc. a good stock for a UK beginner?
The honest version: Caterpillar is the world's leading manufacturer of construction and mining equipment, recognisable by its iconic yellow machines found on building sites globally.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Successful transition to electric and autonomous machinery
Shift away from traditional mining and fossil fuels
What does Caterpillar Inc. do?
Caterpillar makes the heavy-duty machinery used to build roads, dig mines, and construct energy infrastructure. Sales of these massive machines, plus the parts and services that keep them running for years, are what bring in the money. Because their equipment is essential for large-scale global projects, investors often watch the health of the construction and mining industries to gauge how well the company might perform.
On our factor screen it looks strongest on growth and momentum, and weakest on value.
- ✓Pays a dividend - about 0.8% a year
- ✓Growing - revenue up about 22% over the year
- !High P/E of 40 - big growth is already priced in
- !Carries a lot of debt - roughly 2.3x its equity
- ✓Strong return on shareholder money (ROE 51%)
- Growth screens high (71/100)
- Dominant market position in heavy machinery
- Strong brand recognition and loyalty
- High profitability relative to the capital invested
- Value screens low (23/100)
- Potential slowdown in major infrastructure projects
- Rising costs for raw materials like steel
- Increased competition from lower-cost international manufacturers
What do Caterpillar Inc.'s numbers mean?
How much money does Caterpillar Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Caterpillar Inc. pay a dividend?
Yes - Caterpillar Inc. currently pays a dividend of about 0.8% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Caterpillar Inc. report earnings, and how did recent quarters go?
Caterpillar Inc. is next scheduled to report on about 2026-08-04 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-04-30 | $4.64 | $5.54 | Beat +19% |
| 2026-01-29 | $4.71 | $5.16 | Beat +10% |
| 2025-10-29 | $4.52 | $4.95 | Beat +9% |
| 2025-08-05 | $4.90 | $4.72 | Missed -4% |
| 2025-04-30 | $4.34 | $4.25 | Missed -2% |
| 2025-01-30 | $5.03 | $5.14 | Beat +2% |
Across the last 6 quarters here, Caterpillar Inc. came in ahead of what analysts expected 4 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Caterpillar Inc.?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Dominant market position in heavy machinery
- Strong brand recognition and loyalty
- High profitability relative to the capital invested
- High sensitivity to global economic cycles
- Significant share price volatility
- High valuation multiples compared to historical averages
- Potential slowdown in major infrastructure projects
- Rising costs for raw materials like steel
- Increased competition from lower-cost international manufacturers
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained, multi-year decline in global mining activity
- A significant drop in the company's profit margins
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.