Caterpillar Inc. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis

April 2024 | 50 pages | ID: C8BBB89DE54BEN
BAC Reports

Abstracts

Caterpillar Inc. Fundamental Company Report provides a complete overview of the company’s affairs. All available data is presented in a comprehensive and easily accessed format. The report includes financial and SWOT information, industry analysis, opinions, estimates, plus annual and quarterly forecasts made by stock market experts. The report also enables direct comparison to be made between Caterpillar Inc. and its competitors. This provides our Clients with a clear understanding of Caterpillar Inc. position in the Heavy Machinery Industry.

• The report contains detailed information about Caterpillar Inc. that gives an unrivalled in-depth knowledge about internal business-environment of the company: data about the owners, senior executives, locations, subsidiaries, markets, products, and company history.
• Another part of the report is a SWOT-analysis carried out for Caterpillar Inc.. It involves specifying the objective of the company's business and identifies the different factors that are favorable and unfavorable to achieving that objective. SWOT-analysis helps to understand company’s strengths, weaknesses, opportunities, and possible threats against it.
• The Caterpillar Inc. financial analysis covers the income statement and ratio trend-charts with balance sheets and cash flows presented on an annual and quarterly basis. The report outlines the main financial ratios pertaining to profitability, margin analysis, asset turnover, credit ratios, and company’s long-term solvency. This sort of company's information will assist and strengthen your company’s decision-making processes.
• In the part that describes Caterpillar Inc. competitors and the industry in whole, the information about company's financial ratios is compared to those of its competitors and to the industry. The unique analysis of the market and company’s competitors along with detailed information about the internal and external factors affecting the relevant industry will help to manage your business environment. Your company’s business and sales activities will be boosted by gaining an insight into your competitors’ businesses.
• Also the report provides relevant news, an analysis of PR-activity, and stock price movements. The latter are correlated with pertinent news and press releases, and annual and quarterly forecasts are given by a variety of experts and market research firms. Such information creates your awareness about principal trends of Caterpillar Inc. business.

About Caterpillar Inc.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. The company also offers financial products.

Segments

The company operates three lines of business, including Machinery, Engines, and Financial Products.

Machinery

The Machinery segment engages in the design, manufacture, marketing, and sale of construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. Also includes logistics services for other companies and the design, manufacture, remanufacture, maintenance, and services of rail-related products.

Engines

The Engines segment engages in the design, manufacture, marketing, and sale of engines for Caterpillar machinery, electric power generation systems, locomotives, marine, petroleum, construction, industrial, agricultural, and other applications and related parts. Also includes remanufacturing of Caterpillar engines and various Caterpillar machine and engine components and remanufacturing services for other companies. Reciprocating engines meet power needs ranging from 10 to 21,800 horsepower (8 to over 16 000 kilowatts). Its turbines range from 1,600 to 30,000 horsepower (1 200 to 22 000 kilowatts).

Financial Products

The Financial Products segment consists primarily of Caterpillar Financial Services Corporation (Cat Financial), Caterpillar Insurance Holdings, Inc. (Cat Insurance), and their respective subsidiaries. Cat Financial provides a range of financing alternatives to customers and dealers for Caterpillar machinery and engines, solar gas turbines, as well as other equipment and marine vessels. Cat Financial also extends loans to customers and dealers. Cat Insurance provides various forms of insurance to customers and dealers to help support the purchase and lease of its equipment.

Cat Financial’s primary business is to provide retail and wholesale financing alternatives for Caterpillar products to customers around the world. Retail financing primarily comprises financing of Caterpillar equipment, machinery, and engines. In addition, Cat Financial also provides financing for vehicles, power generation facilities, and marine vessels that incorporate Caterpillar products. In addition to retail financing, Cat Financial provides wholesale financing to Caterpillar dealers and purchases short-term dealer receivables from Caterpillar and its subsidiaries.

Joint Ventures

In September 2009, the company and Navistar International Corporation finalized a joint venture transaction resulting in a new company, NC2 Global LLC (NC2). NC2 would develop, manufacture, market, distribute, and provide product support for on-highway medium- and heavy-duty commercial trucks outside of North America, the Indian subcontinent, Myanmar (Burma), and Malaysia.

In December 2009, the company signed a joint venture agreement with China Yuchai Machinery Co. Ltd. through its main operating subsidiary, Guangxi Yuchai Machinery Co. Ltd. (Yuchai) to establish a company to provide remanufacturing services for Yuchai diesel engines and components and certain Caterpillar diesel engines and components.

Caterpillar Inc. and Navistar International Corp. are planning to produce and sell commercial trucks in China. The trucks would be sold under a partnership with Anhui Jianghuai Automobile Company Limited.

Significant Events

On June 24, 2010, Caterpillar Inc. and Wacker Neuson SE have signed an alliance agreement for the design, manufacture, sale, and support of Caterpillar mini hydraulic excavators in the under three-ton category.

Competition

Machinery: The company's competitors include Komatsu Ltd.; Volvo Construction Equipment (part of the Volvo Group AB); CNH Global N.V.; Deere & Co.; Hitachi Construction Machinery Co.; Terex Corporation; J.C. Bamford Ltd. (JCB); and Doosan Infracore Co., Ltd. It also identifies competition from John Deere Construction and Forestry Division (part of Deere & Co.). Its logistics business competes with global, regional and local competitors, including companies, such as DHL International, CEVA, and United Parcel Service, Inc.

Engines: The company's competitors include Cummins Inc.; MTU Friedrichshafen and MTU Detroit Diesel (both are Tognum Group companies); GE Energy Infrastructure; Siemens Energy; Wartsila Corp.; John Deere Power Systems; MAN Diesel SE; MAN Turbo; Mitsubishi Heavy Industries Ltd.; Volvo Penta (part of Volvo Group AB); Kawasaki Heavy Industries; Rolls Royce Group plc; Generac Power Systems, Inc.; and Kohler Co.

Financial Products: Cat Financial’s competitors include Wells Fargo Equipment Finance Inc.; General Electric Capital Corporation; Volvo Financial Services; Komatsu Financial L.P.; and John Deere Credit Corporation.

History

The company was founded in 1925 under the name Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986.

The above Company Fundamental Report is a half-ready report and contents are subject to change.
It means that we have all necessary data in our database to prepare the report but need 2-3 days to complete it. During this time we are also updating the report with respect to the current moment. So, you can get all the most recent data available for the same price. Please note that preparation of additional types of analyses requires extra time.

Contents

RESEARCH METHODOLOGY

DISCLAIMER

1. CATERPILLAR INC. COMPANY PROFILE

1.1. Key facts
1.2. Financial Performance
1.3. Key Executives
1.4. Ownership and Major Holders
1.5. Company History

2. CATERPILLAR INC. BUSINESS OVERVIEW

2.1. Business Description
2.2. Major Products and Services
2.3. Markets and Sales Activities
2.4. Locations, Subsidiaries, Operating Units

3. CATERPILLAR INC. SWOT ANALYSIS

3.1. Overview
3.2. Strengths
3.3. Weaknesses
3.4. Opportunities
3.5. Threats

4. CATERPILLAR INC. FINANCIAL ANALYSIS

4.1. Financial Statements
4.1.1. Income Statement
4.1.2. Balance Sheet
4.1.3. Cash Flow
4.2. Financial Ratios
4.2.1. Profitability
4.2.2. Margin Analysis
4.2.3. Asset Turnover
4.2.4. Credit Ratios
4.2.5. Long-Term Solvency
4.2.6. Growth Over Prior Year
4.2.7. Financial Ratios Charts
4.3. Stock Market Snapshot

5. CATERPILLAR INC. COMPETITORS AND INDUSTRY ANALYSIS

5.1. Caterpillar Inc. Direct Competitors
5.2. Comparison of Caterpillar Inc. and Direct Competitors Financial Ratios
5.3. Comparison of Caterpillar Inc. and Direct Competitors Stock Charts
5.4. Caterpillar Inc. Industry Analysis
5.4.1. Heavy Machinery Industry Snapshot
  5.4.2. Caterpillar Inc. Industry Position Analysis

6. CATERPILLAR INC. NEWS & EVENTS

6.1. News & PR Activity Analysis
6.2. IR Corporate News
6.3. Marketing News
6.4. Corporate Events

7. CATERPILLAR INC. EXPERTS REVIEW¹

7.1. Experts Consensus
7.2. Experts Revisions

8. CATERPILLAR INC. ENHANCED SWOT ANALYSIS²

9. UNITED STATES PESTEL ANALYSIS²

9.1. Political Factors
9.2. Economic Factors
9.3. Social Factors
9.4. Technological Factors
9.5. Environmental Factors
9.6. Legal Factors

10. CATERPILLAR INC. IFE, EFE, IE MATRICES²

10.1. Internal Factor Evaluation Matrix
10.2. External Factor Evaluation Matrix
10.3. Internal External Matrix

11. CATERPILLAR INC. PORTER FIVE FORCES ANALYSIS²

12. CATERPILLAR INC. VRIO ANALYSIS²

APPENDIX: RATIO DEFINITIONS

LIST OF FIGURES

Caterpillar Inc. Annual Revenues in Comparison with Cost of Goods Sold and Gross Profit
Profit Margin Chart
Operating Margin Chart
Return on Equity (ROE) Chart
Return on Assets (ROA) Chart
Debt to Equity Chart
Current Ratio Chart
Caterpillar Inc. 1-year Stock Charts
Caterpillar Inc. 5-year Stock Charts
Caterpillar Inc. vs. Main Indexes 1-year Stock Chart
Caterpillar Inc. vs. Direct Competitors 1-year Stock Charts
Caterpillar Inc. Article Density Chart

1 – Data availability depends on company’s security policy.
2 – These sections are available only when you purchase a report with appropriate additional types of analyses.
The complete financial data is available for publicly traded companies.

List Of Tables

LIST OF TABLES

Caterpillar Inc. Key Facts
Profitability
Management Effectiveness
Income Statement Key Figures
Balance Sheet Key Figures
Cash Flow Statement Key Figures
Financial Performance Abbreviation Guide
Caterpillar Inc. Key Executives
Caterpillar Inc. Major Shareholders
Caterpillar Inc. History
Caterpillar Inc. Products
Revenues by Segment
Revenues by Region
Caterpillar Inc. Offices and Representations
Caterpillar Inc. SWOT Analysis
Yearly Income Statement Including Trends
Income Statement Latest 4 Quarters Including Trends
Yearly Balance Sheet Including Trends
Balance Sheet Latest 4 Quarters Including Trends
Yearly Cash Flow Including Trends
Cash Flow Latest 4 Quarters Including Trends
Caterpillar Inc. Profitability Ratios
Margin Analysis Ratios
Asset Turnover Ratios
Credit Ratios
Long-Term Solvency Ratios
Financial Ratios Growth Over Prior Year
Caterpillar Inc. Capital Market Snapshot
Caterpillar Inc. Direct Competitors Key Facts
Direct Competitors Profitability Ratios
Direct Competitors Margin Analysis Ratios
Direct Competitors Asset Turnover Ratios
Direct Competitors Credit Ratios
Direct Competitors Long-Term Solvency Ratios
Heavy Machinery Industry Statistics
Caterpillar Inc. Industry Position
Company vs. Industry Income Statement Analysis
Company vs. Industry Balance Sheet Analysis
Company vs. Industry Cash Flow Analysis
Company vs. Industry Ratios Comparison
Caterpillar Inc. Consensus Recommendations¹
Analyst Recommendation Summary¹
Price Target Summary¹
Experts Recommendation Trends¹
Revenue Estimates Analysis¹
Earnings Estimates Analysis¹
Historical Surprises¹
Revenue Estimates Trend¹
Earnings Estimates Trend¹
Revenue Revisions¹

ANALYSIS FEATURES

SWOT Analysis

SWOT, which stands for Strengths, Weaknesses, Opportunities and Threats, is an analytical framework that identifies the internal and external factors that are favorable and unfavorable for a company.

Enhanced SWOT Analysis

Enhanced SWOT is a 3×3 grid that arranges strengths, weaknesses, opportunities and threats into one scheme:

• How to use the strengths to take advantage of the opportunities?
• How to use the strengths to reduce likelihood and impact of the threats?
• How to overcome the weaknesses that obstruct taking advantage of the opportunities?
• How to overcome the weaknesses that can make the threats a reality?

Upon answering these questions a company can develop a project plan to improve its business performance.

PESTEL Analysis

PESTEL (also termed as PESTLE) is an ideal tool to strategically analyze what influence different outside factors – political, economic, sociocultural, technological, environmental and legal – exert on a business to later chart its long term targets.

Being part of the external analysis when carrying out a strategic assessment or performing a market study, PESTEL gives an overview of diverse macro-environmental factors that any company should thoughtfully consider. By perceiving these outside environments, businesses can maximally benefit from the opportunities while minimizing the threats to the organization.

Key Factors Examined by PESTEL Analysis:

• Political – What opportunities and pressures are brought by political bodies and what is the degree of public regulations’ impact on the business?
• Economic – What economic policies, trends and structures are expected to affect the organization, what is this influence’s degree?
• Sociological – What cultural and societal aspects will work upon the demand for the business’s products and operations?
• Technological – What impact do the technological aspects, innovations, incentives and barriers have on the organization?
• Environmental – What environmental and ecological facets, both locally and farther afield, are likely to predetermine the business?
• Legal – What laws and legislation will exert influence on the style the business is carried out?

IFE, EFE, IE Matrices

The Internal Factor Evaluation matrix (IFE matrix) is a strategic management tool helping audit or evaluate major weaknesses and strengths in a business’s functional areas. In addition, IFE matrix serves as a basis for identifying and assessing relationships amongst those areas. The IFE matrix is utilised in strategy formulation.

The External Factor Evaluation matrix (EFE matrix) is a tool of strategic management that is typically utilised to assess current market conditions. It is an ideal instrument for visualising and prioritising the threats and opportunities a firm is facing.

The essential difference between the above mentioned matrices lies in the type of factors incorporated in the model; whilst the latter is engaged in internal factors, the former deals exceptionally with external factors – those exposed to social, political, economic, legal, etc. external forces.

Being a continuation of the EFE matrix and IFE matrix models, the Internal External matrix (IE matrix) rests upon an investigation of external and internal business factors integrated into one suggestive model.

Porter Five Forces Analysis

The Porter’s five forces analysis studies the industry of operation and helps the company find new sources of competitive advantage. The analysis surveys an industry through five major questions:

1. What composes a threat of substitute products and services?
2. Is there a threat of new competitors entering the market?
3. What is the intensity of competitive rivalry?
4. How big is the bargaining power of buyers?
5. How significant is the bargaining power of suppliers?

VRIO Analysis

VRIO stands for Value, Rarity, Imitability, Organization. This analysis helps to evaluate all company’s resources and capabilities and bring them together into one aggregate table that includes:

• Tangible resources
  • Financial
  • Physical
  • Technological
  • Organizational
• Intangible resources
  • Human
  • Innovation and Creativity
  • Reputation
• Organizational capabilities

The result of the analysis gives a clear picture of company’s competitive and economic implications, answering the questions if the resources mentioned above are:

• Valuable?
• Rare?
• Costly to imitate?
• Organized properly?