Builds construction and mining equipment and engines, and finances their purchase through a captive lending arm.
Caterpillar (CAT) scores 7.0 out of 10 as of , computed from its reported financial statements. That reads as high quality. The reading rests on profitability, and growth is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
We cannot judge Caterpillar yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
Heavy machinery is about as cyclical as industry gets, so predictability scored across a full cycle is the pillar that matters and the one most likely to look weak in a good year. The captive finance arm also puts lending debt on an industrial balance sheet, which distorts solvency unless read carefully. Profitability at the peak is not the same thing as profitability through the cycle.
Caterpillar (CAT) has a Lemma Quality Score of 7.0 out of 10 as of October 18, 2026, which reads as high quality. A high reading means most of the pillars are strong, with no serious weakness pulling the average down. Five pillars feed it, and every one of them is computed from what the company reported rather than from its share price.
Ranked with the 270 Industrials companies Lemma publishes, the score sits at the 85th percentile, in the top quarter of its peers. A typical company in the group scores 5.6, and the best quarter starts from 6.5. Caterpillar is above that typical reading.
Caterpillar’s profitability score is 8.2 out of 10 (strong). Against a median of 4.9 among 262 Industrials companies, that is well above the group and the 91st percentile. High profitability means each unit of capital and of sales is turning into more profit than at most of its peers, which is usually the first sign of pricing power or a cost advantage.
Caterpillar’s solvency score is 7.3 out of 10 (strong). Against a median of 7.1 among 241 Industrials companies, that is in line with the group and the 53rd percentile. Strong solvency points to a balance sheet that can carry its debts comfortably, with interest well covered and little pressure from creditors.
Growth scores 6.1 out of 10, which reads as average. The median across 216 Industrials companies is 5.4, so Caterpillar is above its peers on this pillar and ranks at the 59th percentile. A middling growth reading is typical of a mature company whose next step depends on reinvestment rather than on its market growing for it.
On efficiency, Caterpillar scores 6.6, an average reading. Its peers have a median of 6.2 across 264 Industrials companies, which places it in line with them, at the 59th percentile. Middling efficiency is unremarkable on its own, though improvements here tend to show up in free cash flow first.
Predictability scores 6.1 out of 10, which reads as average. The median across 267 Industrials companies is 5.0, so Caterpillar is above its peers on this pillar and ranks at the 73rd percentile. Consistency near the median is typical, and it is worth checking whether the swings came from the business itself or from one-off items.
The profile is uneven. Profitability leads at 8.2 while growth trails at 6.1, a gap of 2.1 points, so the overall averages a clear strength against a clear soft spot. Leading with profitability is the most valuable kind of strength, because margins and returns are what the other pillars ultimately feed. A growth shortfall often comes with size or a maturing market, and is less of a concern if the other pillars are strong.
Every scored pillar is at or above the median of Industrials companies, so there is no catch-up left to lift the overall. The risk runs the other way: a one point fall in profitability, the heaviest of them, would take the score from 7.0 to about 6.8. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.
These are the Industrials companies closest to Caterpillar in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading Caterpillar scores 7.0 out of 10, which reads as high quality. Its strongest pillar is profitability, its weakest is growth. Quality is not the same as a good investment: the score says nothing about the price you would pay.
Caterpillar ranks at the 85th percentile of the 270 Industrials companies Lemma publishes a score for. The median there is 5.6 and the top quarter starts at 6.5, against Caterpillar’s 7.0.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 18, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for CAT are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.
Free to start · No credit card