Caterpillar Inc


Want a discount? Become a member by purchasing Annual Subscription!
SKU: CAT Category:


Caterpillar had a strong quarterly result but the impact of inflationary pressures played spoilsport against the company’s margins. Despite delivering an all-around beat backed by a robust demand for its equipment, particularly in the construction and mining industries, the company witnessed a margin contraction on account of rising commodity prices. The management openly communicated that it might expect a further margin contraction in the third quarter of the year. The company witnessed a 40% jump in sales to the construction and mining industries and it appears like demand is not going to be a problem given the heavy Government spending expected on infrastructure, commercial construction, and housing based on President Biden’s infrastructure bill. However, the supply chain issues, high commodity prices, and R&D costs are going to ensure that the investor sentiment associated with Caterpillar might not get overly positive. We maintain our ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

Want unlimited access to our reports? Purchase our $496 annual subscription!