Historical performance is a good guide for the future, but it is imperfect. Pay attention to a
company’s history, but be realistic about what you can project into the future.
CAT Total Returns Comparison
Here are Caterpillar’s total returns compared to the market and some of its peers. High historical
total returns are excellent – especially if you held the stock at the time – but returns can change
direction quickly. To predict future performance, looking at the business is more important than
looking at historic returns.
|S&P 500 Total Return||3.79%||16.06%||18.19%||37.57%|
|United Technologies Corporation||5.88%||13.67%||11.97%||25.51%|
|Deere & Company||0.03%||12.76%||16.56%||73.64%|
* May differ from chart if one year ago today was not a trading day. Table uses the previous
trading day as a base while chart uses the next trading day.
CAT Total Returns Performance
Returns from price appreciation only give a partial view of the returns to an investor. This
total returns chart shows the returns to an investor from both price appreciation and dividends
(dividends are assumed to be reinvested)
CAT Fundamental Performance
Price vs Earnings
In the long run, the price and earnings of a company are correlated. If the two metrics are
diverging, there should be a good reason why. Divergence without reason can signal danger or
EPS Diluted TTM9.78
Earnings Yield vs Dividend Yield
Yields show how much you are getting for the price you pay. For example, an earnings yield of
8% means that for every dollar you pay, you get 8 cents worth of current earnings. Take these
numbers into account when buying to see if you are over-paying or getting a good deal.
Revenue and Earnings Growth
Revenues show how much the company is selling to customers, while net income is what
remains for shareholders after the company pays its expenses. Revenue growth often persists
over time, but net income is more fickle. Watch closely to see if revenue and income grow at
Net Income TTM6.531B
Efficent Use of Assets
Profit margins show what percentage of every dollar of sales turns into earnings. Asset
Uitlization shows how many dollars of sales a company gets for each dollar that the company
invests in assets. Multiplying the two numbers together gives you Return on Assets which tells
you approximately how efficiently the company invests money to earn more money.