CATERPILLAR INC (CAT) — Moat, Quality & Fair Value

CATERPILLAR INC (CAT) has a Wide economic moat and a quality score of 67/100. It operates in the Industrials sector.

Industry: Machinery · Industrials

Market share (2025): 11.7% of Construction, mining & farm machinery · 9.0% of Trucks, engines & rail equipment (Power & Energy)

Themes: Power demand & grid (partial) · Infrastructure (partial)

Economic moat: Wide. Its competitive advantage is anchored in Intangible Assets, Switching Costs, and Cost Advantage. A wide moat indicates durable advantages likely to protect returns on capital for many years. Learn more about how we classify moats in our guide to economic moats.

Quality score: 67/100. This score combines seven weighted pillars — returns on capital, margin strength, cash generation, financial health, durability, management, and moat & position. See how the quality score works.

Fair value: Our base owner-earnings estimate is $621.27 (range $330.07–$912.48). At $718.69, CAT trades a 16% premium to its estimated fair value — above fair value. Read how we calculate fair value.

Management: Insufficient Tenure. Our management grade evaluates capital allocation, shareholder returns, compensation, dilution, buyback timing, and insider ownership.

Explore the full interactive analysis for CAT below — including the price & fair-value chart, financial statements, and the complete management evaluation. New to the framework? Start with the MoatScope guide.