CaterpillarWBO:CAT -2.79%79 Net Margin % is 14.64% as of Mar. 2026, which is 29% above its 10-year median of 11.31. GuruFocus rates WBO:CAT with a GF Score™ of 79/100 and a GF Value™ of €351.43 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 211 Farm & Heavy Construction Machinery companies, Caterpillar ranks better than 90.05% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Caterpillar's Net Income for the
three
months ended in Mar. 2026 was €2,205 Mil. Caterpillar's Revenue for the
three
months ended in Mar. 2026 was €15,064 Mil. Therefore, Caterpillar's net margin for the quarter that ended in Mar. 2026 was 14.64%.
The historical rank and industry rank for Caterpillar's Net Margin % or its related term are showing as below:
WBO:CAT'
s Net Margin % Range Over the Past 10 Years
Min: -0.17 Med: 11.31 Max: 16.65
Current: 13.33
WBO:CAT's Net Margin % is ranked better than 90.05% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 5.14
vs WBO:CAT: 13.33
Caterpillar (WBO:CAT) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Caterpillar Net Margin % Related Terms
Caterpillar Net Margin % Historical Data
* Premium members only.
The historical data trend for Caterpillar's Net 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.
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's Net Margin % distribution charts can be found below:
* The bar in red indicates where Caterpillar's Net 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 (WBO:CAT) has a Net Margin % of 14.64% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Caterpillar and its competitors. This is 29% above median its historical median of 11.31. According to the industry distribution chart, Caterpillar ranks #21 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 10%.
Is Caterpillar's Net Margin % too high?
Caterpillar's current Net Margin % of 14.64% is 29% above median its 10-year median of 11.31. The Farm & Heavy Construction Machinery industry median Net Margin % is 5.14. Caterpillar's value of 14.64% is 184.8% above this industry median. Based on the distribution chart, Caterpillar ranks #21 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 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Caterpillar's Net Margin % compare to DE and PCAR?
According to the Farm & Heavy Construction Machinery industry distribution chart, Caterpillar ranks #21 out of 211 companies for Net Margin %. This places Caterpillar in the top 10% of its industry — outperforming the majority of peers. The industry median Net Margin % is 5.14. Caterpillar's value of 14.64% is 184.8% above this benchmark. While the company's 10-year median is 11.31 vs. the industry median of 5.14, 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 Net Margin % for a Farm & Heavy Construction Machinery company?
The median Net Margin % among Farm & Heavy Construction Machinery companies is 5.14, based on 211 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caterpillar's current Net Margin % of 14.64% is 184.8% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Caterpillar and its competitors. For the Farm & Heavy Construction Machinery industry, the median Net Margin % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caterpillar's current Net Margin % is 14.64%, which is 29% above median its own 10-year median of 11.31. 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 (WBO:CAT) is currently considered Significantly Overvalued. The stock's GF Value™ is €351.43, compared to a current price of €863.20 — trading 145.6% above its estimated fair value. The current Net Margin % is 14.64%, which is 29% above median its 10-year median of 11.31 and 184.8% above the Farm & Heavy Construction Machinery industry median of 5.14. Caterpillar's overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Caterpillar (WBO:CAT), the current Net Margin % is 14.64% 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 (WBO:CAT) Overvalued in 2026?
Based on GuruFocus' analysis, Caterpillar stock appears to be overvalued.
The current stock price of €863.20 is trading 145.6% above its estimated GF Value™ of €351.43.
GuruFocus considers Caterpillar to be Significantly Overvalued.
Key valuation signals for WBO:CAT:
Net Margin %: 14.64% (29% above median its 10-year median of 11.31)
GF Value™: €351.43 vs. price of €863.20 (145.6% above fair value)
Industry Position: 184.8% above the Farm & Heavy Construction Machinery median (#21 of 211)
No single metric tells the full story. See the WBO:CAT 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.
79GF Score
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