CAT
ConsumerValuation Breakdown
A classic Discounted Cash Flow model built on Free Cash Flow (FCF), the actual cash a business generates after all operating expenses and capital expenditures. Future FCF is projected for 10 years with gradually decaying growth, then discounted back to today's value using WACC. This is the gold standard of intrinsic valuation: it values the company based on what it can actually deliver to shareholders, independent of market sentiment.
Valuation Track Record
Retroactive intrinsic value vs actual close price — CAT
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -3.1707 indicates a low likelihood of earnings manipulation, as it is well below the manipulation threshold of -1.78. However, the earnings quality metrics reveal significant concerns, particularly with a revenue quality score of 0.0/100, suggesting potential issues in revenue recognition.
- Revenue quality score of 0.0/100 raises concerns about the legitimacy of reported revenues.
- SGI of 1.2578 indicates unusually high sales growth relative to previous periods, which may not be sustainable.
- Earnings Quality Score of 67.0/100 suggests reasonable overall earnings quality, particularly strong cash conversion at 100.0/100.
The ownership structure is relatively concentrated, with the top five shareholders holding a combined 45.1%. This concentration may lead to governance risks if decisions favor major shareholders over minority interests.
Investors should closely monitor revenue recognition practices and consider the sustainability of sales growth before making investment decisions. A deeper analysis into the company's operational metrics and market conditions is advised.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for CAT — hover nodes for intel, click to navigate