Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Caterpillar Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Profit attributable to common stockholders 6,489  2,998  6,093  6,147  754 
Profit attributable to noncontrolling interests
Net noncash charges 1,352  3,741  3,748  4,487  5,137 
Changes in assets and liabilities, net of acquisitions and divestitures (647) (417) (2,930) (4,077) (194)
Net cash provided by operating activities 7,198  6,327  6,912  6,558  5,702 
Capital expenditures, excluding equipment leased to others (1,093) (978) (1,056) (1,276) (898)
Expenditures for equipment leased to others (1,379) (1,137) (1,613) (1,640) (1,438)
Proceeds from disposals of leased assets and property, plant and equipment 1,265  772  1,153  936  1,164 
Proceeds from debt issued, original maturities greater than three months 6,989  10,431  9,841  8,907  9,063 
Payments on debt, original maturities greater than three months (9,796) (8,237) (8,297) (7,829) (8,384)
Short-term borrowings, net, original maturities three months or less 3,488  (2,804) (138) 762  (3,058)
Free cash flow to equity (FCFE) 6,672  4,374  6,802  6,418  2,151 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Caterpillar Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Caterpillar Inc. FCFE decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Price to FCFE Ratio, Current

Caterpillar Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 527,909,143
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 6,672 
FCFE per share 12.64
Current share price (P) 195.95
Valuation Ratio
P/FCFE 15.50
Benchmarks
P/FCFE, Competitors1
Boeing Co.
General Electric Co.
Honeywell International Inc. 49.12
Lockheed Martin Corp. 16.13
Raytheon Technologies Corp. 35.01

Based on: 10-K (reporting date: 2021-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Caterpillar Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 535,888,051 545,303,847 550,082,610 575,542,738 597,625,772
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 6,672  4,374  6,802  6,418  2,151 
FCFE per share3 12.45 8.02 12.37 11.15 3.60
Share price1, 4 203.64 202.30 136.86 132.62 159.98
Valuation Ratio
P/FCFE5 16.36 25.22 11.07 11.89 44.45
Benchmarks
P/FCFE, Competitors6
Boeing Co. 6.78 19.60 15.23 15.94
General Electric Co. 469.44
Honeywell International Inc. 46.23 12.59 21.75 26.34 18.13
Lockheed Martin Corp. 14.65 15.57 28.62 49.82 18.40
Raytheon Technologies Corp. 35.07 28.09 6.94 14.93
P/FCFE, Sector
Capital Goods 88.31 29.90 33.15 22.04
P/FCFE, Industry
Industrials 26.32 22.85 23.50 22.40

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,672,000,000 ÷ 535,888,051 = 12.45

4 Closing price as at the filing date of Caterpillar Inc. Annual Report.

5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 203.64 ÷ 12.45 = 16.36

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Caterpillar Inc. P/FCFE ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.