These numbers can be found on the company’s 8-K report. Sales and revenue for the fourth quarter of 2016 were $9.6 billion, down from $11.0 billion in the fourth quarter of 2015. Fourth quarter was a loss of $2.00 per share, compared with a loss of $0.16 per share in the fourth quarter of 2015. Full-year sales and revenue were $38.5 billion in 2016, which is down about 18% from $47.0 billion in 2015. These are not the best of numbers, but remember the market this company sells to and use that with the fundamental data to formulate the beginnings of an opinion.
Now, let us take a look at the chart using the monthly time frame, as we can see price is about in the middle of the range, which would indicate price is somewhat stable. Right now, price could swing in any direction, which means you have to be on the lookout for any important data points or new that may be waiting in the pipeline. Also, keep an eye on the Feds and what they found in their raid of the company. Be sure to use all data points in formulating an opinion because the chart doesn’t tell the whole story.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Caterpillar income statement, its balance sheet, and the statement of cash flows. Potential Caterpillar investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Caterpillar investors may use each financial statement separately, they are all related. The changes in Caterpillar's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Caterpillar's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Caterpillar
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Caterpillar performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Caterpillar shares is the value that is considered the true value of the share. If
the intrinsic value of Caterpillar is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Caterpillar. Please read more on our
fundamental analysis page.
How effective is Caterpillar in utilizing its assets?
Caterpillar reports assets on its Balance Sheet. It represents the amount of Caterpillar resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Caterpillar aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Construction Machinery & Heavy Transportation Equipment space. To get a better handle on how balance sheet or income statements item affect Caterpillar volatility, please check the breakdown of all its
fundamentals.
Are Caterpillar Earnings Expected to grow?
The
future earnings power of Caterpillar involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Caterpillar factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Caterpillar
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Caterpillar
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Caterpillar earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Caterpillar dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Caterpillar one year expected dividend income is about USD3.27 per share.
At this time, Caterpillar's
Dividend Yield is comparatively stable compared to the past year.
Dividend Payout Ratio is likely to gain to 0.26 in 2024, despite the fact that
Dividends Paid is likely to grow to (2.4
B).
Investing in dividend-paying stocks, such as Caterpillar is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Caterpillar must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Caterpillar. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Caterpillar Gross Profit
Caterpillar Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Caterpillar previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Caterpillar Gross Profit growth over the last 10 years. Please check Caterpillar's
gross profit and other
fundamental indicators for more details.
Breaking down Caterpillar Indicators
Risks
For a full list of risks, take a look at the most recent 10-K filing, as this will provide details. For now, here are a couple to keep in mind while researching. First, this company deals in a very cyclical market, which could mean the price of the stock is could be volatile. Secondly, the company deals in heavy equipment, which means these items take time to build and cost large sums of money to make. It isn’t everyday someone needs an industrial sized dump truck, so keep an eye on the backlog if possible.
Conclusion
Overall, the company is a provider of equipment that is need across the nation and the world. If another 2008 were to happen, you would have to watch a company like this to see if they could take the hit. For now, I would continue to research and determine if this is a good fit for your portfolio. If you still have questions, reach out to an investing professional as they can help point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
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