Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Caterpillar's 3-Year RORE % for the quarter that ended in Mar. 2026 was -8.22%.
The industry rank for Caterpillar's 3-Year RORE % or its related term are showing as below:
XSWX:CAT's 3-Year RORE % is ranked worse than 52.04% of 196
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: -0.945
vs XSWX:CAT: -8.22
Caterpillar (XSWX:CAT) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Caterpillar 3-Year RORE % Related Terms
Caterpillar 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Caterpillar's 3-Year RORE % 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 RORE % Comparison
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Caterpillar's 3-Year RORE % 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Caterpillar (XSWX:CAT) has a 3-Year RORE % of -8.22 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Caterpillar and its competitors. According to the industry distribution chart, Caterpillar ranks #102 out of 196 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 52%.
Is Caterpillar's 3-Year RORE % too high?
Caterpillar's current 3-Year RORE % is -8.22. Based on the distribution chart, Caterpillar ranks #102 out of 196 companies in the Farm & Heavy Construction Machinery industry, which is below 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 RORE % compare to DE and PCAR?
According to the Farm & Heavy Construction Machinery industry distribution chart, Caterpillar ranks #102 out of 196 companies for 3-Year RORE %. This places Caterpillar in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Farm & Heavy Construction Machinery company?
A good 3-Year RORE % depends on the Farm & Heavy Construction Machinery industry context. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Caterpillar and its competitors. Caterpillar's current 3-Year RORE % is -8.22. 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 RORE % of -8.22. The stock's GF Value™ is CHF333.65, compared to a current price of CHF825.01 — trading 147.3% above its estimated fair value. The current 3-Year RORE % is -8.22. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Caterpillar (XSWX:CAT), the current 3-Year RORE % is -8.22 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 (XSWX:CAT) Overvalued in 2026?
Based on GuruFocus' analysis, Caterpillar stock appears to be overvalued.
The current stock price of CHF825.01 is trading 147.3% above its estimated GF Value™ of CHF333.65.
Key valuation signals for XSWX:CAT:
3-Year RORE %: -8.22
GF Value™: CHF333.65 vs. price of CHF825.01 (147.3% above fair value)
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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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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