Caterpillar (MIL:1CAT) ROCE %: 22.14% (As of Mar. 2026)


MIL:1CAT Caterpillar Inc MIL:1CAT
56 GF Score
Price €863.20
GF Value €352.01
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Caterpillar ROCE %?

Caterpillar MIL:1CAT -2.79% 56 ROCE % is 22.14% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Caterpillar's annualized ROCE % for the quarter that ended in Mar. 2026 was 22.14%.

Caterpillar  (MIL:1CAT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Caterpillar ROCE % Related Terms

Caterpillar ROCE % Historical Data

* Premium members only.

The historical data trend for Caterpillar's ROCE % 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.

Caterpillar ROCE % Chart

Caterpillar Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.08 18.38 25.92 26.16 19.41

Caterpillar Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial 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 19.59 21.17 22.86 21.09 22.14
MIL:1CAT
56GF Score
Caterpillar Inc MIL:1CAT
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Caterpillar ROCE % Calculation

Caterpillar's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=10284.722/( ( (83814.62 - 30819.76) + (84191.59 - 31220.532) )/ 2 )
=10284.722/( (52994.86+52971.058)/ 2 )
=10284.722/52982.959
=19.41 %

Caterpillar's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=11573.7/( ( (84191.59 - 31220.532) + (82650.75 - 31055.23) )/ 2 )
=11573.7/( ( 52971.058 + 51595.52 )/ 2 )
=11573.7/52283.289
=22.14 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 22.14% mean?
Caterpillar (MIL:1CAT) has a ROCE % of 22.14% as of Mar. 2026.
Is Caterpillar's ROCE % too high?
Caterpillar's current ROCE % is 22.14%. The Farm & Heavy Construction Machinery industry median ROCE % is 9.18. Caterpillar's value of 22.14% is 141.2% above this industry median. 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 ROCE % compare to DE and PCAR?
Caterpillar's ROCE % of 22.14% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROCE % is 9.18. Caterpillar's value of 22.14% is 141.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Farm & Heavy Construction Machinery company?
The median ROCE % among Farm & Heavy Construction Machinery companies is 9.18, based on 205 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caterpillar's current ROCE % of 22.14% is 141.2% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Farm & Heavy Construction Machinery industry, the median ROCE % is 9.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caterpillar's current ROCE % is 22.14%. 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 ROCE % is 22.14% and 141.2% above the Farm & Heavy Construction Machinery industry median of 9.18. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Caterpillar (MIL:1CAT), the current ROCE % is 22.14% 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:

  • ROCE %: 22.14%
  • GF Value™: €352.01 vs. price of €863.20 (145.2% above fair value)
  • GF Score™: 56/100 with 6 warning signs
  • Industry Position: 141.2% above the Farm & Heavy Construction Machinery median

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 Business Description

Address 5205 N. O\'Connor Boulevard, Suite 100, Irving, TX, USA, 75039
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€863.20
Price
€352.01
GF Value