Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. More Details
Established dividend payer with adequate balance sheet.
Share Price & News
How has Cummins's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CMI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: CMI's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: CMI underperformed the US Machinery industry which returned 84.5% over the past year.
Return vs Market: CMI exceeded the US Market which returned 53.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Cummins's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall StShould You Review Recent Insider Transactions At Cummins Inc. (NYSE:CMI)?
2 weeks ago | Simply Wall StEstimating The Fair Value Of Cummins Inc. (NYSE:CMI)
3 weeks ago | Simply Wall StWhen Should You Buy Cummins Inc. (NYSE:CMI)?
Is Cummins undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CMI ($260.42) is trading below our estimate of fair value ($270.05)
Significantly Below Fair Value: CMI is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CMI is good value based on its PE Ratio (21.6x) compared to the US Machinery industry average (35.6x).
PE vs Market: CMI is good value based on its PE Ratio (21.6x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: CMI is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: CMI is overvalued based on its PB Ratio (4.8x) compared to the US Machinery industry average (3.2x).
How is Cummins forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CMI's forecast earnings growth (12.3% per year) is above the savings rate (2%).
Earnings vs Market: CMI's earnings (12.3% per year) are forecast to grow slower than the US market (18.5% per year).
High Growth Earnings: CMI's earnings are forecast to grow, but not significantly.
Revenue vs Market: CMI's revenue (7.6% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: CMI's revenue (7.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CMI's Return on Equity is forecast to be high in 3 years time (27.8%)
How has Cummins performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CMI has high quality earnings.
Growing Profit Margin: CMI's current net profit margins (9%) are lower than last year (9.6%).
Past Earnings Growth Analysis
Earnings Trend: CMI's earnings have grown by 11.5% per year over the past 5 years.
Accelerating Growth: CMI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CMI had negative earnings growth (-20.8%) over the past year, making it difficult to compare to the Machinery industry average (-13.3%).
Return on Equity
High ROE: CMI's Return on Equity (20.1%) is considered high.
How is Cummins's financial position?
Financial Position Analysis
Short Term Liabilities: CMI's short term assets ($11.9B) exceed its short term liabilities ($6.3B).
Long Term Liabilities: CMI's short term assets ($11.9B) exceed its long term liabilities ($7.3B).
Debt to Equity History and Analysis
Debt Level: CMI's debt to equity ratio (45.8%) is considered high.
Reducing Debt: CMI's debt to equity ratio has increased from 21.2% to 45.8% over the past 5 years.
Debt Coverage: CMI's debt is well covered by operating cash flow (66.2%).
Interest Coverage: CMI's interest payments on its debt are well covered by EBIT (24.2x coverage).
What is Cummins's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CMI's dividend (2.07%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: CMI's dividend (2.07%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: CMI's dividends per share have been stable in the past 10 years.
Growing Dividend: CMI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (43.8%), CMI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CMI's dividends in 3 years are forecast to be well covered by earnings (33.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Linebarger (57 yo)
Mr. N. Thomas Linebarger, also known as Tom, serves as Chief Executive Officer at Cummins Norway AS. Mr. Linebarger serves as Chief Executive Officer of Cummins Inc. at Cummins Power Systems, LLC. He has b...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD17.29M) is above average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Experienced Management: CMI's management team is considered experienced (2.1 years average tenure).
Experienced Board: CMI's board of directors are seasoned and experienced ( 11.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CMI insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Cummins Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Cummins Inc.
- Ticker: CMI
- Exchange: NYSE
- Founded: 1919
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Market Cap: US$38.282b
- Shares outstanding: 146.54m
- Website: https://www.cummins.com
Number of Employees
- Cummins Inc.
- 500 Jackson Street
- Box 3005
- United States
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, D...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/13 22:10|
|End of Day Share Price||2021/04/13 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.