Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Caterpillar Inc.'s performance for the fourth quarter and the entire year of 2024 demonstrates a mixed set of outcomes, underscoring both the strengths and challenges faced by the company.</li><li>The diversified nature of its end markets and its sustained focus on long-term strategic goals have been pivotal in maintaining a relatively stable financial position despite a decrease in top-line results.</li><li>Positively, Caterpillar reported a record adjusted profit per share for the year at $21.90, a 3% increase over 2023, and achieved an adjusted operating profit margin of 20.7%.</li></ul>

Caterpillar Inc.'s performance for the fourth quarter and the entire year of 2024 demonstrates a mixed set of outcomes, underscoring both the strengths and challenges faced by the company.The diversified nature of its end markets and its sustained focus on long-term strategic goals have been pivotal in maintaining a relatively stable financial position despite a decrease in top-line results.Positively, Caterpillar reported a record adjusted profit per share for the year at $21.90, a 3% increase over 2023, and achieved an adjusted operating profit margin of 20.7%.

Caterpillar Inc.: An Insight Into Its Pricing Strategies & Market Conditions! - Major Drivers

<ul><li>Caterpillar delivered mixed results for the third quarter of 2024, reflecting both strengths and weaknesses in various operational aspects.</li><li>Sales and revenues decreased by 4% year-over-year to $16.1 billion, primarily attributed to a shortfall in Construction Industries and Resource Industries, partially offset by growth in Energy & Transportation.</li><li>The company achieved an adjusted operating profit margin of 20%, in line with expectations, despite the revenue decrease.</li></ul>

Caterpillar delivered mixed results for the third quarter of 2024, reflecting both strengths and weaknesses in various operational aspects.Sales and revenues decreased by 4% year-over-year to $16.1 billion, primarily attributed to a shortfall in Construction Industries and Resource Industries, partially offset by growth in Energy & Transportation.The company achieved an adjusted operating profit margin of 20%, in line with expectations, despite the revenue decrease.

Caterpillar Inc.: What Is Their Market Position & Competitive Strategy in Construction Industries? - Major Drivers

<ul><li>Caterpillar Inc.'s Second Quarter of 2024 earnings showcased a mixed set of results reflective of both the robust execution of the company’s strategic initiatives and some market-induced challenges.</li><li>Jim Umpleby, Chairman and CEO, emphasized resilience through the diversified market presence and the sound execution of long-term growth strategies.</li><li>Despite facing a slight decline in sales and revenues, which fell by 4% from the previous year, Caterpillar recorded an increase in its adjusted operating profit and a noteworthy improvement in operating profit margins.</li></ul>

Caterpillar Inc.'s Second Quarter of 2024 earnings showcased a mixed set of results reflective of both the robust execution of the company’s strategic initiatives and some market-induced challenges.Jim Umpleby, Chairman and CEO, emphasized resilience through the diversified market presence and the sound execution of long-term growth strategies.Despite facing a slight decline in sales and revenues, which fell by 4% from the previous year, Caterpillar recorded an increase in its adjusted operating profit and a noteworthy improvement in operating profit margins.

Caterpillar Inc.: These Are The 7 Pivotal Factors Driving Its Performance In 2025 & Beyond! - Financial Forecasts

<ul><li>Caterpillar's earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the last year, largely meeting the company’s expectations.</li><li>A key aspect was the continuation of healthy demand for its products and services across major end markets.</li><li>Thanks to its robust balance sheet and free cash flow, the company was able to allocate a remarkable $5.1 billion for share repurchases and dividends during the quarter.</li></ul>

Caterpillar's earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the last year, largely meeting the company’s expectations.A key aspect was the continuation of healthy demand for its products and services across major end markets.Thanks to its robust balance sheet and free cash flow, the company was able to allocate a remarkable $5.1 billion for share repurchases and dividends during the quarter.

Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! - Major Drivers

Quantitative Equity Analyst, DMA

Charlotte van Tiddens, CFA

Quantitative Equity Analyst

Technology-First Company

DMA is a technology-first company that provides an end-to-end SaaS solution to institutional investors. DMA enables regulated entities like asset managers, wealth managers, investment managers and financial advisors to connect their front and back office, break silos and reduce headcount.

Quantitative Analysis

<ul>
<li>Short duration US factor strategies outperformed in September as markets came under pressure (value and dividend yield).</li>
<li>Despite keeping rates unchanged on the 20th of September at 5.5% (upper bound), Fed Chair Powell indicated that rates would be kept higher for longer than initially anticipated.</li>
<li>In this note we explore the <em><strong>relative performance</strong></em> of US factor strategies through different interest rate cycles, to inform timing around factor/style rotation.</li>
</ul>


Short duration US factor strategies outperformed in September as markets came under pressure (value and dividend yield).
Despite keeping rates unchanged on the 20th of September at 5.5% (upper bound), Fed Chair Powell indicated that rates would be kept higher for longer than initially anticipated.
In this note we explore the relative performance of US factor strategies through different interest rate cycles, to inform timing around factor/style rotation.


US Factor Strategies: Value and Dividend Yield Outperform in September, Higher for Longer Narrative

United States

Caterpillar Inc. designs, manufactures and markets construction, mining and forestry machinery. The Company also manufactures engines  and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

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Caterpillar Inc (CAT US)

Caterpillar Inc.: An Insight Into Its Pricing Strategies & Market Conditions! - Major Drivers

Caterpillar Inc.'s performance for the fourth quarter and the entire year of 2024 demonstrates a mixed set of outcomes, underscoring both the...

Baptista Research

Caterpillar Inc.: What Is Their Market Position & Competitive Strategy in Construction Industries? - Major Drivers

Caterpillar delivered mixed results for the third quarter of 2024, reflecting both strengths and weaknesses in various operational aspects. Sales...

Baptista Research

Caterpillar Inc.: These Are The 7 Pivotal Factors Driving Its Performance In 2025 & Beyond! - Financial Forecasts

Caterpillar Inc.'s Second Quarter of 2024 earnings showcased a mixed set of results reflective of both the robust execution of the company’s...

Baptista Research

Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! - Major Drivers

Caterpillar's earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the...

Baptista Research

US Factor Strategies: Value and Dividend Yield Outperform in September, Higher for Longer Narrative

US rates and factor strategies: higher for longer likely to drive outperformance of short duration factor strategies, long US value short US growth.

DMA

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