Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Is Caterpillar Making Money?

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Is Caterpillar Making Money?

Furthermore, Caterpillar’s quarterly revenues fell from $14.432 billion on 30 June 2019 to $12.758 billion on 30 September 2019. Plus, Caterpillar’s quarterly gross profit fell from $4.299 billion on 30 June 2019 to $4 billion three months later.

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Crazy StocksLong Ideas

Is Caterpillar Doomed?

Caterpillar is no longer a value investment; instead it was grossly overpriced at the $77.37 the shares were trading at on July 8, 2016. Despite the cash and float, Cat’s shares will take a major tumble if the next earnings report is as bad as the last one.

The revenue and income declines indicate that the company’s 4.11% dividend yield and 7.84% return on equity are not sustainable. Instead expect both those numbers and Caterpillar’s share price to fall dramatically.

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