Caterpillar (Germany) Performance
| CAT1 Stock | 308.00 4.50 1.44% |
The firm shows a Beta (market volatility) of 0.51, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Caterpillar's returns are expected to increase less than the market. However, during the bear market, the loss of holding Caterpillar is expected to be smaller as well. At this point, Caterpillar has a negative expected return of -0.2%. Please make sure to confirm Caterpillar's potential upside, kurtosis, and the relationship between the value at risk and skewness , to decide if Caterpillar performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Caterpillar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders. ...more
| Begin Period Cash Flow | 9.3 B |
Caterpillar |
Caterpillar Relative Risk vs. Return Landscape
If you would invest 34,926 in Caterpillar on December 19, 2024 and sell it today you would lose (4,126) from holding Caterpillar or give up 11.81% of portfolio value over 90 days. Caterpillar is generating negative expected returns and assumes 1.8151% volatility on return distribution over the 90 days horizon. Simply put, 16% of stocks are less volatile than Caterpillar, and 99% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Caterpillar Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Caterpillar's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Caterpillar, and traders can use it to determine the average amount a Caterpillar's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.1082
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | CAT1 |
Estimated Market Risk
| 1.82 actual daily | 16 84% of assets are more volatile |
Expected Return
| -0.2 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.11 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Caterpillar is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Caterpillar by adding Caterpillar to a well-diversified portfolio.
Caterpillar Fundamentals Growth
Caterpillar Stock prices reflect investors' perceptions of the future prospects and financial health of Caterpillar, and Caterpillar fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Caterpillar Stock performance.
| Return On Equity | 0.41 | |||
| Return On Asset | 0.074 | |||
| Profit Margin | 0.11 % | |||
| Operating Margin | 0.16 % | |||
| Current Valuation | 144.41 B | |||
| Shares Outstanding | 516.35 M | |||
| Price To Book | 7.85 X | |||
| Price To Sales | 1.97 X | |||
| Revenue | 59.43 B | |||
| EBITDA | 11.43 B | |||
| Total Debt | 9.5 B | |||
| Book Value Per Share | 30.73 X | |||
| Cash Flow From Operations | 7.77 B | |||
| Earnings Per Share | 11.92 X | |||
| Total Asset | 81.94 B | |||
About Caterpillar Performance
By analyzing Caterpillar's fundamental ratios, stakeholders can gain valuable insights into Caterpillar's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Caterpillar has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Caterpillar has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Things to note about Caterpillar performance evaluation
Checking the ongoing alerts about Caterpillar for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Caterpillar help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Caterpillar generated a negative expected return over the last 90 days | |
| About 72.0% of the company shares are held by institutions such as insurance companies |
- Analyzing Caterpillar's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Caterpillar's stock is overvalued or undervalued compared to its peers.
- Examining Caterpillar's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Caterpillar's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Caterpillar's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Caterpillar's stock. These opinions can provide insight into Caterpillar's potential for growth and whether the stock is currently undervalued or overvalued.
Complementary Tools for Caterpillar Stock analysis
When running Caterpillar's price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.
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