Management CV Initiates Coverage on Caterpillar Inc.

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Management CV Initiates Coverage on Caterpillar Inc.

Management CV

Management CV

“We like the tenure of Caterpillar’s executives, but note the team is top heavy with finance backgrounds. Despite the difficult macro environment, the Board continues to return cash to shareholders by raising the dividend and purchasing shares.”

Ahead of expected continued growth of the heavy machinery industry, Management CV initiated coverage on Caterpillar Inc., and released a management diligence report on the CEO and senior management team (report). Management CV thinks CEO Douglas Oberhelman’s major initiatives continue to be encouraging for shareholders. Management CV’s report states, “Major initiatives include: improvements to its already strong dealer network, continued cost discipline with a more flexible cost structure, product development and continued development in China, the largest market in the world for construction equipment. Longer term goals include growing EPS by at least 15% per year and a TSR in the top quintile of the S&P 500. We like the fact that management quickly transitioned from a growth strategy to cost containment last year in the face of a challenging environment and we like their financial discipline.” Management CV ranks Caterpillar’s CEO and senior management team highly vs. industry peers.

The Management CV report on Caterpillar is available (report). Christine Song, Director & VP, Research Services said, “We like the tenure of Caterpillar’s executives, but note the team is top heavy with finance backgrounds. Despite the difficult macro environment, the Board continues to return cash to shareholders by raising the dividend and purchasing shares.”

Management CV provides institutional investors with concise due diligence reports on public company management teams. The firm covers North American and EU equities and counts many of the world's largest institutional investors as its clients. Investors can use Management CV's quintile ranks and expert analyst commentary to improve relative returns and reduce portfolio risk.

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Ben Wright
Management CV
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