After accumulation, acceleration. Timing appears favorable to go long in shares of Caterpillar Inc. and to anticipate an exit of the trading range on the upside.
Summary
● The company has a good ESG score relative to its sector, according to MSCI.
Strengths
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Analyst opinion has improved significantly over the past four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
Weaknesses
● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
● Based on current prices, the company has particularly high valuation levels.
● The company appears highly valued given the size of its balance sheet.
● For the past year, analysts have significantly revised downwards their profit estimates.
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Caterpillar Inc. is the world's leading producer of mining construction and operation equipment, diesel and natural gas motors, and industrial gas turbines. Net sales break down by activity as follows:
- sale of machines and motors (94.7%): terracing and construction machines (power shovels, high-lifts, bulldozers, etc.), agricultural and forestry tractors, motors and turbines (for heavy trucks, boats, industrial machines, and power stations), conveyer systems, hydraulic circuits and components, etc.;
- financial services (5.3%).
Net sales are distributed geographically as follows: North America (53.1%), Europe/Africa/Middle East (19%), Asia/Pacific (17.6%) and Latin America (10.3%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
