CaterpillarXSWX:CAT 83 3-Year ROIIC % is 15.00 as of Dec. 2025, which is 43% below its 10-year median of 26.29. GuruFocus rates XSWX:CAT with a GF Score™ of 83/100 and a GF Value™ of CHF335.84. The stock has 6 warning signs investors should review. Among 202 Farm & Heavy Construction Machinery companies, Caterpillar ranks better than 67.33% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Caterpillar's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 15.00%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Caterpillar's 3-Year ROIIC % or its related term are showing as below:
XSWX:CAT's 3-Year ROIIC % is ranked better than 67.33% of 202
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.97
vs XSWX:CAT: 15.00
Caterpillar (XSWX:CAT) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Caterpillar 3-Year ROIIC % Related Terms
Caterpillar 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Caterpillar's 3-Year ROIIC % 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.
XSWX:CAT vs DE, PCAR, CNH: 3-Year ROIIC % Comparison
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Caterpillar's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Caterpillar (XSWX:CAT) has a 3-Year ROIIC % of 15.00 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Caterpillar and its competitors. This is 43% below median its historical median of 26.29. According to the industry distribution chart, Caterpillar ranks #66 out of 202 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 32.7%.
Is Caterpillar's 3-Year ROIIC % too high?
Caterpillar's current 3-Year ROIIC % of 15.00 is 43% below median its 10-year median of 26.29. The Farm & Heavy Construction Machinery industry median 3-Year ROIIC % is 1.97. Caterpillar's value of 15.00 is 661.4% above this industry median. Based on the distribution chart, Caterpillar ranks #66 out of 202 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Caterpillar has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Caterpillar's 3-Year ROIIC % compare to DE and PCAR?
According to the Farm & Heavy Construction Machinery industry distribution chart, Caterpillar ranks #66 out of 202 companies for 3-Year ROIIC %. This puts Caterpillar in the upper half of its industry. The industry median 3-Year ROIIC % is 1.97. Caterpillar's value of 15.00 is 661.4% above this benchmark. While the company's 10-year median is 26.29 vs. the industry median of 1.97, 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 3-Year ROIIC % for a Farm & Heavy Construction Machinery company?
The median 3-Year ROIIC % among Farm & Heavy Construction Machinery companies is 1.97, based on 202 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caterpillar's current 3-Year ROIIC % of 15.00 is 661.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Caterpillar and its competitors. For the Farm & Heavy Construction Machinery industry, the median 3-Year ROIIC % is 1.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caterpillar's current 3-Year ROIIC % is 15.00, which is 43% below median its own 10-year median of 26.29. 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?
Caterpillar (XSWX:CAT) has a current 3-Year ROIIC % of 15.00. The stock's GF Value™ is CHF335.84, compared to a current price of CHF855.92 — trading 154.9% above its estimated fair value. The current 3-Year ROIIC % is 15.00, which is 43% below median its 10-year median of 26.29 and 661.4% above the Farm & Heavy Construction Machinery industry median of 1.97. Caterpillar's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Caterpillar (XSWX:CAT), the current 3-Year ROIIC % is 15.00 as of Dec. 2025. 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 (XSWX:CAT) Overvalued in 2026?
Based on GuruFocus' analysis, Caterpillar stock appears to be overvalued.
The current stock price of CHF855.92 is trading 154.9% above its estimated GF Value™ of CHF335.84.
Key valuation signals for XSWX:CAT:
3-Year ROIIC %: 15.00 (43% below median its 10-year median of 26.29)
GF Value™: CHF335.84 vs. price of CHF855.92 (154.9% above fair value)
Industry Position: 661.4% above the Farm & Heavy Construction Machinery median (#66 of 202)
No single metric tells the full story. See the XSWX: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.
83GF Score
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