CAT FCF Yield Analysis
Updated 1233h ago·SEC filings & market data
Key Takeaway
With a current FCF Yield of 1.7%, this metric measures the free cash flow generated per share relative to the stock price, indicating how much cash return an investor receives for each dollar invested.
Sector Performance
22th percentileCAT
1.7%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
1.6%(Jun 2026)
Deep Analysis
With a current FCF Yield of 1.7%, this metric measures the free cash flow generated per share relative to the stock price, indicating how much cash return an investor receives for each dollar invested.
That yield is well below the sector median of 4.2%, placing the stock at the 22nd percentile among its sector peers — meaning most competitors offer a higher cash return relative to their share price. Trend data is limited: the year-over-year change is not available, but the quarter-over-quarter change shows a +6.2% increase from the prior quarter’s 1.6%. The combination of a low yield (suggesting the stock is expensive relative to its cash generation) paired with a recent uptick in the metric points to a modest improvement, but the absolute level still signals limited cash return for shareholders. This low FCF Yield supports the overall CAUTIOUS verdict, as the stock appears overvalued compared to its sector peers on a cash-flow basis.
Frequently Asked Questions
What does the FCF Yield tell investors about CAT?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are CAT's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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1.7%
Sector Median
4.2%
Sector Avg
9.2%
How CAT's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.