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Caterpillar (NYSE:CAT) Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Caterpillar has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Caterpillar's Piotroski F-Score or its related term are showing as below:

CAT' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Caterpillar was 8. The lowest was 1. And the median was 5.


Caterpillar (NYSE:CAT) Piotroski F-Score Historical Data

The historical data trend for Caterpillar's Piotroski F-Score 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.

* Premium members only.

Caterpillar Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 8.00 5.00 5.00 8.00

Caterpillar Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 8.00 6.00 6.00 6.00

Caterpillar (NYSE:CAT) Piotroski F-Score Competitive Comparison

For the Farm & Heavy Construction Machinery subindustry, Caterpillar's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 (NYSE:CAT) Piotroski F-Score Distribution

For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Caterpillar's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Sep22) TTM:Last Year (Sep21) TTM:
Net Income was 2120 + 1537 + 1673 + 2041 = $7,371 Mil.
Cash Flow from Operations was 1412 + 313 + 2233 + 2481 = $6,439 Mil.
Revenue was 13798 + 13589 + 14247 + 14994 = $56,628 Mil.
Gross Profit was 3692 + 3924 + 4152 + 4641 = $16,409 Mil.
Average Total Assets from the begining of this year (Sep21)
to the end of this year (Sep22) was
(80784 + 82793 + 82276 + 81107 + 80907) / 5 = $81573.4 Mil.
Total Assets at the begining of this year (Sep21) was $80,784 Mil.
Long-Term Debt & Capital Lease Obligation was $25,509 Mil.
Total Current Assets was $42,577 Mil.
Total Current Liabilities was $30,202 Mil.
Net Income was 780 + 1530 + 1413 + 1426 = $5,149 Mil.

Revenue was 11235 + 11887 + 12889 + 12397 = $48,408 Mil.
Gross Profit was 3323 + 3750 + 3892 + 3669 = $14,634 Mil.
Average Total Assets from the begining of last year (Sep20)
to the end of last year (Sep21) was
(76741 + 78324 + 80729 + 81697 + 80784) / 5 = $79655 Mil.
Total Assets at the begining of last year (Sep20) was $76,741 Mil.
Long-Term Debt & Capital Lease Obligation was $27,154 Mil.
Total Current Assets was $41,893 Mil.
Total Current Liabilities was $25,976 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Caterpillar's current Net Income (TTM) was 7,371. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Caterpillar's current Cash Flow from Operations (TTM) was 6,439. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep21)
=7371/80784
=0.09124332

ROA (Last Year)=Net Income/Total Assets (Sep20)
=5149/76741
=0.06709582

Caterpillar's return on assets of this year was 0.09124332. Caterpillar's return on assets of last year was 0.06709582. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Caterpillar's current Net Income (TTM) was 7,371. Caterpillar's current Cash Flow from Operations (TTM) was 6,439. ==> 6,439 <= 7,371 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep21 to Sep22
=25509/81573.4
=0.31271223

Gearing (Last Year: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=27154/79655
=0.34089511

Caterpillar's gearing of this year was 0.31271223. Caterpillar's gearing of last year was 0.34089511. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep22)=Total Current Assets/Total Current Liabilities
=42577/30202
=1.40974108

Current Ratio (Last Year: Sep21)=Total Current Assets/Total Current Liabilities
=41893/25976
=1.61275793

Caterpillar's current ratio of this year was 1.40974108. Caterpillar's current ratio of last year was 1.61275793. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Caterpillar's number of shares in issue this year was 527.6. Caterpillar's number of shares in issue last year was 547.6. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=16409/56628
=0.28976831

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=14634/48408
=0.3023054

Caterpillar's gross margin of this year was 0.28976831. Caterpillar's gross margin of last year was 0.3023054. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep21)
=56628/80784
=0.70098039

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep20)
=48408/76741
=0.6307971

Caterpillar's asset turnover of this year was 0.70098039. Caterpillar's asset turnover of last year was 0.6307971. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+0+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Caterpillar has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Caterpillar  (NYSE:CAT) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Caterpillar Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Caterpillar's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Caterpillar (NYSE:CAT) Business Description

Caterpillar logo
Address
510 Lake Cook Road, Suite 100, Deerfield, IL, USA, 60015
Caterpillar is an iconic manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment with over 13% market share in 2021. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with over 2,000 branches maintained by 168 dealers. Caterpillar Financial Services provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.
Executives
Schaupp William E officer: Chief Accounting Officer PPG INDUSTRIES, INC. ONE PPG PLACE PITTSBURGH PA 15272
Maclennan David director 14701 CHARLSON ROAD EDEN PRAIRIE MN 55347
Johnson Gerald director 300 RENAISSANCE CENTER M/C: 482-C23-A68 DETROIT MI 48265
Fassino Anthony D. officer: Group President 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Marvel Gary Michael officer: Chief Accounting Officer 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Ainsworth William P officer: Group President 510 LAKE COOK ROAD SUITE 100 DEERFIELD X1 60015
Bonfield Andrew R J officer: Chief Financial Officer C/O BRISTOL MYERS SQUIBB CO 345 PARK AVE NEW YORK NY 10164
Younessi Ramin officer: Group President 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Creed Joseph E officer: Interim CFO 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Ayotte Kelly director C/O NEWS CORPORATION 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036
Johnson Cheryl H officer: Chief Human Resources Officer 40 WESTMINSTER STREET PROVIDENCE RI 02903
Wilkins Rayford Jr director 208 S. AKARD ST. -- DALLAS TX 75202
Long Suzette M officer: Int. Executive Vice President 510 LAKE COOK ROAD SUITE 100 DEERFILED IL 60015
De Lange Bob officer: Group President 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Johnson Denise C officer: Group President C/O CATERPILLAR, INCORPORATED 901 WEST WASHINGTON, CV41110 EAST PEORIA IL 61630

Caterpillar (NYSE:CAT) Headlines

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