CaterpillarMIL:1CAT -2.79%56 FCF Margin % is 4.70% as of Mar. 2026, which is 48% below its 10-year median of 8.98. GuruFocus rates MIL:1CAT with a GF Score™ of 56/100 and a GF Value™ of €352.01 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 211 Farm & Heavy Construction Machinery companies, Caterpillar ranks better than 81.52% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Caterpillar's Free Cash Flow for the
three
months ended in Mar. 2026 was €708 Mil. Caterpillar's Revenue for the
three
months ended in Mar. 2026 was €15,064 Mil. Therefore, Caterpillar's FCF Margin % for the quarter that ended in Mar. 2026 was 4.70%.
The historical rank and industry rank for Caterpillar's FCF Margin % or its related term are showing as below:
MIL:1CAT'
s FCF Margin % Range Over the Past 10 Years
Min: 6.66 Med: 8.98 Max: 14.6
Current: 11.15
During the past 13 years, the highest FCF Margin % of Caterpillar was 14.60%. The lowest was 6.66%. And the median was 8.98%.
MIL:1CAT's FCF Margin % is ranked better than 81.52% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 3.15
vs MIL:1CAT: 11.15
Caterpillar FCF Margin % Related Terms
Caterpillar FCF Margin % Historical Data
* Premium members only.
The historical data trend for Caterpillar's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MIL:1CAT vs DE, PCAR, CNH: FCF Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Caterpillar FCF Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Caterpillar's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Caterpillar (MIL:1CAT) has a FCF Margin % of 4.70% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Caterpillar and its competitors. This is 48% below median its historical median of 8.98. Over the past decade, Caterpillar's FCF Margin % has ranged from 6.66 to 14.60. According to the industry distribution chart, Caterpillar ranks #39 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 18.5%.
Is Caterpillar's FCF Margin % too high?
Caterpillar's current FCF Margin % of 4.70% is 48% below median its 10-year median of 8.98. Over the past 10 years, this metric has ranged from a low of 6.66 to a high of 14.60. The Farm & Heavy Construction Machinery industry median FCF Margin % is 3.15. Caterpillar's value of 4.70% is 49.2% above this industry median. Based on the distribution chart, Caterpillar ranks #39 out of 211 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Caterpillar has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Caterpillar's FCF Margin % compare to DE and PCAR?
According to the Farm & Heavy Construction Machinery industry distribution chart, Caterpillar ranks #39 out of 211 companies for FCF Margin %. This places Caterpillar in the top 19% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 3.15. Caterpillar's value of 4.70% is 49.2% above this benchmark. Historically, Caterpillar's own FCF Margin % has ranged from 6.66 to 14.60 over the past decade. While the company's 10-year median is 8.98 vs. the industry median of 3.15, Caterpillar has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Farm & Heavy Construction Machinery company?
The median FCF Margin % among Farm & Heavy Construction Machinery companies is 3.15, based on 211 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caterpillar's current FCF Margin % of 4.70% is 49.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Caterpillar and its competitors. For the Farm & Heavy Construction Machinery industry, the median FCF Margin % is 3.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caterpillar's current FCF Margin % is 4.70%, which is 48% below median its own 10-year median of 8.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Caterpillar stock overvalued right now?
Based on GuruFocus' analysis, Caterpillar (MIL:1CAT) is currently considered Significantly Overvalued. The stock's GF Value™ is €352.01, compared to a current price of €863.20 — trading 145.2% above its estimated fair value. The current FCF Margin % is 4.70%, which is 48% below median its 10-year median of 8.98 and 49.2% above the Farm & Heavy Construction Machinery industry median of 3.15. Caterpillar's overall GF Score™ is 56/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Caterpillar (MIL:1CAT), the current FCF Margin % is 4.70% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Caterpillar (MIL:1CAT) Overvalued in 2026?
Based on GuruFocus' analysis, Caterpillar stock appears to be overvalued.
The current stock price of €863.20 is trading 145.2% above its estimated GF Value™ of €352.01.
GuruFocus considers Caterpillar to be Significantly Overvalued.
Key valuation signals for MIL:1CAT:
FCF Margin %: 4.70% (48% below median its 10-year median of 8.98)
GF Value™: €352.01 vs. price of €863.20 (145.2% above fair value)
Industry Position: 49.2% above the Farm & Heavy Construction Machinery median (#39 of 211)
No single metric tells the full story. See the MIL:1CAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its reporting segments are construction, resource, energy, and transportation. Market share approaches 20% across many products. Caterpillar operates a captive finance subsidiary to facilitate sales. The firm has a global reach that is approximately evenly balanced between the US and the rest of the world. Construction skews more domestic, while the other divisions are more geographically diversified. An independent network of over 150 dealers operates approximately 2,800 facilities, giving Caterpillar reach into about 190 countries for sales and support services.
56GF Score
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