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CAT vs EAF

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
EAF
GrafTech International Ltd.
BEARISH
Price
$9.42
Market Cap
$244.8M
Sector
Industrials
AI Confidence
95%

Valuation

P/E Ratio
CAT
39.01
EAF
--
Forward P/E
CAT
26.48
EAF
-14.66
P/B Ratio
CAT
16.05
EAF
-0.94
P/S Ratio
CAT
5.09
EAF
0.49
EV/EBITDA
CAT
26.1
EAF
-100.24

Profitability

Gross Margin
CAT
28.79%
EAF
-3.11%
Operating Margin
CAT
16.02%
EAF
-30.72%
Profit Margin
CAT
13.14%
EAF
-43.61%
ROE
CAT
43.53%
EAF
--
ROA
CAT
7.89%
EAF
-4.09%

Growth

Revenue Growth
CAT
18.0%
EAF
-13.2%
Earnings Growth
CAT
-11.4%
EAF
--

Financial Health

Debt/Equity
CAT
2.07
EAF
--
Current Ratio
CAT
1.44
EAF
3.78
Quick Ratio
CAT
0.87
EAF
1.65

Dividends

Dividend Yield
CAT
0.85%
EAF
--
Payout Ratio
CAT
31.05%
EAF
0.0%

AI Verdict

CAT NEUTRAL

CAT shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong revenue growth of 18.0%
Strong ROE of 43.5%
Risks
High valuation with P/E of 39.0
Premium vs Graham Number ($139.4)
High debt burden with D/E of 2.07
EAF BEARISH

GrafTech International (EAF) is in severe financial distress, evidenced by a critical Piotroski F-Score of 1/9 and a negative Price-to-Book ratio of -0.94, indicating negative shareholder equity. The company is suffering from a complete collapse in profitability, with negative gross margins (-3.11%) and deep operating losses. Revenue is declining (-13.20% YoY), and the earnings trajectory has shifted from strong profits in 2021 to massive losses in 2025-2026. Despite a high current ratio, the underlying solvency is highly questionable.

Strengths
Strong current ratio (3.78) suggesting short-term liquidity
Low Price-to-Sales ratio (0.49) relative to historical norms
Recent short-term price recovery (+51% in 1 month)
Risks
Negative shareholder equity (P/B -0.94) indicating insolvency risk
Negative gross margins (-3.11%) meaning the cost of goods exceeds revenue
Severe earnings deterioration with recent Q/Q EPS growth of -137.9%

Compare Another Pair

CAT vs EAF: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and GrafTech International Ltd. (EAF) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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