How to buy Caterpillar (CAT) shares in Australia
Learn how to easily invest in Caterpillar shares.
Caterpillar Inc is a farm & heavy construction machinery business with stocks listed in the US. Caterpillar shares (CAT) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$257.41 – an increase of 0.25% over the previous week. Here's how to invest if you're based in Australia.
How to buy shares in Caterpillar
- Compare share trading platforms. To buy shares in a company listed in the US from Australia you'll need to find a trading platform that offers access to US stock markets. Look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, which will typically include your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Caterpillar. Find the share by name or ticker symbol: CAT. Research its history to confirm it's a solid investment that matches your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Caterpillar reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying using consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$255.97, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Caterpillar, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Caterpillar. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights.
What's in this guide?
- Caterpillar key stats
- Compare share trading platforms
- Is Caterpillar stock a buy or sell?
- Caterpillar performance over time
- Is Caterpillar suitable for ethical investing?
- Are Caterpillar shares over-valued?
- Caterpillar's financials
- How volatile are Caterpillar shares?
- Does Caterpillar pay a dividend?
- Have Caterpillar shares ever split?
- Other common questions
Caterpillar stock price (NYSE:CAT)Use our graph to track the performance of CAT stocks over time.
Have Caterpillar's shares ever split?
Caterpillar's shares were split on a 2:1 basis on 14 July 2005. So if you had owned 1 share the day before the split, the next day you would own 2 shares. This wouldn't directly have changed the overall worth of your Caterpillar shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Caterpillar shares which in turn could have impacted Caterpillar's share price.
Caterpillar shares at a glance
|52-week range||US$201.9867 - US$292.3693|
|50-day moving average||US$254.0502|
|200-day moving average||US$245.9751|
|Dividend yield||US$5 (2.04%)|
|Earnings per share (TTM)||US$17.63|
Caterpillar price performance over time
|1 week (2023-12-01)||0.25%|
|1 month (2023-11-08)||9.62%|
|3 months (2023-09-08)||-8.81%|
|6 months (2023-06-08)||9.79%|
|1 year (2022-12-08)||11.47%|
|2 years (2021-12-08)||26.06%|
|3 years (2020-12-08)||43.93%|
|5 years (2018-12-07)||108.34%|
Compare trading platforms to buy Caterpillar shares
Is it a good time to buy Caterpillar stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Is Caterpillar under- or over-valued?
Valuing Caterpillar stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Caterpillar's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Caterpillar's P/E ratio
Caterpillar's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 14x. In other words, Caterpillar shares trade at around 14x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Caterpillar's PEG ratio
Caterpillar's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.5256. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Caterpillar's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Caterpillar's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$15.7 billion (£12.5 billion).
The EBITDA is a measure of a Caterpillar's overall financial performance and is widely used to measure stock profitability.
Caterpillar share price volatility
Over the last 12 months, Caterpillar's shares have ranged in value from as little as US$201.9867 up to US$292.3693. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Caterpillar's is 1.077. This would suggest that Caterpillar's shares are a little bit more volatile than the average for this exchange and represent, relatively speaking, a slightly higher risk (but potentially also market-beating returns).
|Revenue TTM||US$66.6 billion|
|Operating margin TTM||20.45%|
|Gross profit TTM||US$15.6 billion|
|Return on assets TTM||10.18%|
|Return on equity TTM||50.45%|
|Market capitalisation||US$129.7 billion|
TTM: trailing 12 months
Caterpillar share dividends
Dividend payout ratio: 24.69% of net profits
Recently Caterpillar has paid out, on average, around 24.69% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.04% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Caterpillar shareholders could enjoy a 2.04% return on their shares, in the form of dividend payments. In Caterpillar's case, that would currently equate to about $5 per share.
While Caterpillar's payout ratio might seem low, this can signify that Caterpillar is investing more in its future growth.
Caterpillar's most recent dividend payout was on 20 November 2023. The latest dividend was paid out to all shareholders who bought their shares by 20 October 2023 (the "ex-dividend date").
Caterpillar's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Caterpillar.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Caterpillar's total ESG risk score
Total ESG risk: 40.85
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Caterpillar's overall score of 40.85 (as at 01/01/2019) is pretty weak – landing it in it in the 86th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Caterpillar is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Caterpillar's environmental score
Environmental score: 13.72/100
Caterpillar's environmental score of 13.72 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Caterpillar is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Caterpillar's social score
Social score: 21.74/100
Caterpillar's social score of 21.74 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Caterpillar is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Caterpillar's governance score
Governance score: 8.39/100
Caterpillar's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Caterpillar is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Caterpillar's controversy score
Controversy score: 4/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Caterpillar scored a 4 out of 5 for controversy – the second-lowest score possible, reflecting that Caterpillar has a damaged public profile.
Environmental, social, and governance (ESG) summary
|Total ESG score||40.85|
|Total ESG percentile||86.14|
|Environmental score percentile||4|
|Social score percentile||4|
|Governance score percentile||4|
|Level of controversy||4|
Caterpillar Inc. manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, tractors, excavators, telehandlers, motor graders, and pipelayers; compact track and multi-terrain, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools. The company's Resource Industries segment provides electric rope and hydraulic shovels, draglines, rotary drills, hard rock vehicles, tractors, mining trucks, longwall miners, wheel loaders, off-highway and articulated trucks, wheel tractor scrapers and dozers, fleet management products, landfill and soil compactors, machinery components, autonomous ready vehicles and solutions, work tools, and safety services and mining performance solutions, as well as related parts and services. Its Energy & Transportation segment offers reciprocating engine powered generator sets; reciprocating engines, drivetrain, and integrated systems and solutions; turbines, centrifugal gas compressors, and related services; and diesel-electric locomotives and components, and other rail-related products. The company's Financial Products segment provides operating and finance leases, installment sale contracts, repair/rebuild financing services, working capital loans, and wholesale financing; and insurance and risk management products and services. Its All Other operating segment offers filters and fluids, undercarriage, ground engaging tools, fluid transfer products, precision seals, and rubber sealing and connecting components; parts distribution; integrated logistics solutions and distribution services; brand management and marketing strategy services; and digital investments services. Caterpillar Inc. was founded in 1925 and is headquartered in Irving, Texas.
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