Industrials
The world's largest manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.
View forensic reportCaterpillar's $65.7 billion revenue base, elite free cash flow conversion, and hidden data centre construction exposure make the 42x multiple more justified than it appears.
Caterpillar has compounded revenue at 10% annually while returning $25 billion to shareholders over five years. The capital allocation discipline is the best in industrials — and the cycle isn't over.
With $10.3 billion in free cash flow and a 16% operating margin on $67.6 billion in revenue, Caterpillar is executing a capital allocation playbook that the market has not fully valued.