CaterpillarMIL:1CAT -2.79%56 Operating Margin % is 17.71% as of Mar. 2026, which is 18% above its 10-year median of 15.01. 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 209 Farm & Heavy Construction Machinery companies, Caterpillar ranks better than 93.3% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Caterpillar's Operating Income for the
three
months ended in Mar. 2026 was €2,669 Mil. Caterpillar's Revenue for the
three
months ended in Mar. 2026 was €15,064 Mil. Therefore, Caterpillar's Operating Margin % for the quarter that ended in Mar. 2026 was 17.71%.
Good Sign:
Caterpillar Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Caterpillar's Operating Margin % or its related term are showing as below:
MIL:1CAT'
s Operating Margin % Range Over the Past 10 Years
Min: 4.56 Med: 15.01 Max: 20.17
Current: 16.48
MIL:1CAT's Operating Margin % is ranked better than 93.3% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs MIL:1CAT: 16.48
Caterpillar's 5-Year Average Operating Margin % Growth Rate was 10.60% per year.
Caterpillar's Operating Income for the
three
months ended in Mar. 2026 was €2,669 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €10,020 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Caterpillar Operating Margin % Related Terms
Caterpillar Operating Margin % Historical Data
* Premium members only.
The historical data trend for Caterpillar's Operating 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: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Caterpillar's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Caterpillar's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 17.71% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Caterpillar and its competitors. This is 18% above median its historical median of 15.01. Over the past decade, Caterpillar's Operating Margin % has ranged from 4.56 to 20.17. According to the industry distribution chart, Caterpillar ranks #14 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 6.7%.
Is Caterpillar's Operating Margin % too high?
Caterpillar's current Operating Margin % of 17.71% is 18% above median its 10-year median of 15.01. Over the past 10 years, this metric has ranged from a low of 4.56 to a high of 20.17. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Caterpillar's value of 17.71% is 161.2% above this industry median. Based on the distribution chart, Caterpillar ranks #14 out of 209 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 Operating Margin % compare to DE and PCAR?
According to the Farm & Heavy Construction Machinery industry distribution chart, Caterpillar ranks #14 out of 209 companies for Operating Margin %. This places Caterpillar in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.78. Caterpillar's value of 17.71% is 161.2% above this benchmark. Historically, Caterpillar's own Operating Margin % has ranged from 4.56 to 20.17 over the past decade. While the company's 10-year median is 15.01 vs. the industry median of 6.78, 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 Operating Margin % for a Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.78, based on 209 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caterpillar's current Operating Margin % of 17.71% is 161.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Caterpillar and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caterpillar's current Operating Margin % is 17.71%, which is 18% above median its own 10-year median of 15.01. 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 Operating Margin % is 17.71%, which is 18% above median its 10-year median of 15.01 and 161.2% above the Farm & Heavy Construction Machinery industry median of 6.78. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Caterpillar (MIL:1CAT), the current Operating Margin % is 17.71% 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:
Operating Margin %: 17.71% (18% above median its 10-year median of 15.01)
GF Value™: €352.01 vs. price of €863.20 (145.2% above fair value)
Industry Position: 161.2% above the Farm & Heavy Construction Machinery median (#14 of 209)
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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