Caterpillar Stock

July 23, 2011 by staff 

Caterpillar StockCaterpillar Stock, Caterpillar Inc. NYSE: CAT was overstated in the earnings release on Friday; the reults were impressive considering the effects of the earthquake in Japan, Q2 Read the full report, and click here

Shayne Heffernan has improved Caterpillar Inc. NYSE: CAT needed at the actions and issued a price target of 2012 and 160.

In a note to traders Shayne Heffernan yesterday cited the rising prices of agricultural products and production and the growing demand of the New York Stock Exchange Caterpillar Inc. CAT range of products in emerging markets such as by the actions must be in the portfolio of investors.

Caterpillar Inc. (NYSE: CAT) posted Q-2 and 2011 profit attributable to common shareholders of U.S. and 1.015B, an increase of 44% in the U.S. and 707m in the previous year.

Earnings per common share for the fourth quarter rose to 1.52 against 1.09 in the prior year quarter.

Excluding U.S. and 204M of the costs associated with the acquisition of Bucyrus, Q-2 earnings per share were 1.72, an improvement of 58% from 1.09 last year.

Quarterly sales and earnings of U.S. and rose 37% 14.23B U.S. and 10.41B a year ago. Twoanlysts estimated revenues of U.S. 13.52B and the neighborhood.

For fiscal 2011, the company expects sales and revenues in the range of U.S. and 54 to 56B and earnings per share of 6.75 to 7.25.

That is an improvement of its previous forecast of 52 to 54 ter and sales and income and earnings per share of 6.25 to 6.75.

Caterpillar Inc. (Caterpillar) is dedicated to the manufacture of construction machinery and mining equipment, diesel and natural gas, industrial gas turbines and diesel-electric locomotives. Caterpillar operates in three principal lines of business: machinery, engines and financial products. Line machinery business includes the design, manufacture, marketing and sale of construction machinery, mining and forestry. Engine line of business includes design, manufacture, marketing and sales of engines for Caterpillar machinery systems, power generation and marine, petroleum, construction, industrial, and agricultural and other related parts. Financial product line consists of main activity Caterpillar Financial Services Corporation (Cat Financial), Caterpillar Insurance Holdings, Inc. (Cat Insurance) and their respective subsidiaries. During the year ended August 31, 2010, Caterpillar acquired Electro-Motive Diesel Inc. (EMD), a manufacturer of diesel-electric locomotives. In July 2011, the Company acquired Bucyrus International, Inc.


Caterpillar’s line of business machines including tractors and wheel track, track and wheel loaders, pipe layer, graders, scrapers, excavators and wheel track, backhoes, log skidders, log loaders, off-road trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunneling equipment and parts. Caterpillar Logistics business provides integrated supply chain for Caterpillar customers and about 50. Caterpillar also offers rail-related products and services through its wholly owned subsidiary, Progress Rail. Progress Rail is a provider of a range of products and services to the railroad industry, particularly new and remanufactured locomotives, railcar and track products and design services and maintenance. In addition, this line of business also includes EMD.

The company competes with Komatsu Ltd., Volvo Group AB, CNH Global NV, Deere & Co., Hitachi Construction Machinery Co., Ltd. JCBamford, Doosan Infracore Co., Ltd., LiuGong Construction Machinery NA, and LLC. DHL International, CEVA Logistics, Kuehne + Nagel Inc., GE Transportation, Bombardier, Siemens and VAE Nortrak North America Inc.,


Caterpillar industrial turbines and provides services related to oil and gas turbines and power generation. The company also includes remanufacturing of Caterpillar engines and a variety of Caterpillar machine components and engine remanufacturing services for other companies. Reciprocating engines meet the power needs of 10 to 21,700 horsepower (8 more than 16,000 kilowatts). Turbines range from 1,600 to 30,000 horsepower (1200 to 22,000 kW).

The company competes with Cummins Inc., Tognum AG, GE Energy Infrastructure, Siemens Energy, Wartsila Corp., John Deere Power Systems, MAN Diesel SE, Mitsubishi Heavy Industries Ltd., Volvo Group AB, Kawasaki Heavy Industries, Rolls Royce Group plc, Generac Power Systems, Inc. and Kohler Co.

Financial Products

Caterpillar Financial Products business provides financing alternatives for retail and wholesale products to customers and Caterpillar dealers. Retail finance is the financing of Caterpillar equipment, engines and machines. Cat Financial also provides financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. In addition to retail finance, Cat Financial provides wholesale financing to Caterpillar dealers and purchases short-term dealer receivables from Caterpillar and its subsidiaries. Cat Finance operates in North America, Asia, Australia, Europe and Latin America.

Cat Insurance provides various forms of insurance to customers and dealers to help purchase and rental of equipment. The company owns subsidiaries Caterpillar Insurance Company, which is licensed to conduct property and casualty insurance business in 50 states and the District of Columbia, the life of Caterpillar Insurance Company, licensed to carry out life and accident and health insurance in 26 states and the District of Columbia, Caterpillar Insurance Co. Ltd. is a captive insurance company, which is an insurance company for Class 2; Caterpillar Product Services Corporation is a warranty company, which conducts a program of extended service contract machine in Germany and France, and Caterpillar Insurance Services Corporation is an insurance brokerage firm licensed in 50 states and the District of Columbia, and provides brokerage services of all property and death and life and health lines of business.

The company competes with Wells Fargo Equipment Finance Inc., General Electric Capital Corporation, Volvo Financial Services, LP Financial Komatsu and John Deere Capital Corporation.

Valuation Ratios
The Company Industry Sector S & P 500
P / E Ratio (TTM) 20.94 27.31 17.39 17.62
P / E High – last 5 years. 39.86 296.81 63.96 100.59
P / E Low – last 5 years. 7.89 12.06 14.90 12.63

Beta 1.71 1.39 1.15 1.26

Price (TTM) 1.82 1.87 1.33 2.43
Price Book (MRQ) 1.50 2.14 5.06 13.19
Price to book materials (MRQ) 2.13 2.86 6.77 15.75
Price Cash Flow (TTM) 13.16 16.27 10.51 9.25
Price of Free Cash Flow (TTM) 23.45 68.90 30.76 19.09

% Owned institutions – - – -

The Company Industry Sector S & P 500
Dividend Yield 1.75 1.62 1.48 1.86
Dividend Yield – 5 years on average. 2.30 1.63 1.33 2.40
The effects of 5 years growth rate -2.84 9.63 12.63 8.82

Exercise (TTM) 22.45 34.30 28.51 29.82

Growth rates
The Company Industry Sector S & P 500
Sales (MRQ) vs. Qtr. 1 year. 36.71 17.41 11.04 8.93 ago
Sales (TTM) vs TTM 1 year. 51.05 17.71 7.47 10.28 ago
Sales – 5 years. Growth Rate 3.22 4.10 7.18 7.83

EPS (MRQ) vs. Qtr. 1 year. 127.15 39.22 13.27 2.08 ago
EPS (TTM) vs TTM 1 year. Makes 146.59 – - -
EPS – 5 years. Growth Rate 0.53 3.68 14.14 5.51

Capital expenditure – 5 years. Growth Rate 1.38 3.09 10.17 3.80

Financial Strength
The Company Industry Sector S & P 500
Quick Ratio (MRQ) 1.25 1.00 1.30 0.65
Current Ratio (mrq) 1.63 1.48 1.73 1.01
LT Debt to Capital (MRQ) 193.61 50.48 45.99 125.71
Total debt to equity (MRQ) 256.75 71.23 74.74 163.20
Interest Coverage (TTM) 5.22 0.29 0.20 19.11

Profitability Ratios
The Company Industry Sector S & P 500
Gross Margin (TTM) 20.53 26.93 27.00 33.71
Gross Margin – 5 years. Media. 24.75 26.67 24.17 32.02

EBITDA Margin (TTM) 16.18 – - -
EBITDA – 5 years. Average 13.52 13.36 12.93 20.24

Operating Margin (TTM) 11.56 9.75 8.67 -
Operating Margin – 5 years. Media. 8.82 9.13 8.72 15.29

Pre-tax Margin (TTM) 14.70 8.84 10.66 9.70
Income before taxes – to 5 years. Media. 8.77 8.80 8.91 14.81

Net Profit Margin (TTM) 8.00 6.25 6.82 10.99
Net Profit Margin – 5 years. Media. 6.64 5.82 6.01 10.95

Effective tax rate (TTM) 24.09 34.03 24.93 22.38
Effecitve tax rate – 5 years. Media. 24.32 34.45 38.26 24.91

Shayne Heffernan
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings over 25 years of business experience in Asia and hands on experience in venture capital, which has participated in several start-up companies that have market capitalization and more than 500 meters and to reach a peak market capitalization and 15 ter. He has directed and supervised start-ups in Mining Services, Transportation, Technology and Financial.

Report to Team

Please feel free to send if you have any questions regarding this post , you can contact on

Disclaimer: The views expressed on this site are that of the authors and not necessarily that of U.S.S.POST.


Comments are closed.