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CMI

CumminsNYSE:CMI Stock Report

Market Cap

US$31.8b

7D

-0.6%

1Y

11.2%

Updated

23 Sep, 2021

Data

Company Financials +
CMI fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance6/6
Financial Health4/6
Dividends5/6

CMI Overview

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide.

Cummins Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cummins
Historical stock prices
Current Share PriceUS$228.33
52 Week HighUS$199.70
52 Week LowUS$277.09
Beta1.05
1 Month Change-3.31%
3 Month Change-5.20%
1 Year Change11.15%
3 Year Change55.13%
5 Year Change83.75%
Change since IPO3,446.87%

Recent News & Updates

Sep 14

Cummins Stock Looking More Tempting, But Cycle Risk Remains A Concern

Cummins shares have underperformed, as investors debate the length/depth of the next cyclical downturn for heavy-duty trucks and how quickly new technologies like hydrogen will contribute real profits. Management may be preparing to spin off filtration; a move that could make sense in terms of the strategic moves needed to reposition the business for long-term success. Healthy profits from the diesel business will fund further product development in hydrogen/electrification technology and should offset lower new-tech margins during their initial ramps. Cummins is always a good stock to watch on cyclical downturns, but the downturn-to-date is only about half of what has been typical in past downturns.

Aug 26
Cummins (NYSE:CMI) Could Easily Take On More Debt

Cummins (NYSE:CMI) Could Easily Take On More Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 13
Do Cummins's (NYSE:CMI) Earnings Warrant Your Attention?

Do Cummins's (NYSE:CMI) Earnings Warrant Your Attention?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

CMIUS MachineryUS Market
7D-0.6%-0.7%-0.5%
1Y11.2%39.0%37.5%

Return vs Industry: CMI underperformed the US Machinery industry which returned 37% over the past year.

Return vs Market: CMI underperformed the US Market which returned 36.2% over the past year.

Price Volatility

Is CMI's price volatile compared to industry and market?
CMI volatility
CMI Beta1.05
Industry Beta1.25
Market Beta1

Stable Share Price: CMI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CMI's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191957,825Tom Linebargerhttps://www.cummins.com

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, Distribution, Components, Power Systems, and New Power. The company offers diesel and natural gas powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers new parts and services, as well as remanufactured parts and engines.

Cummins Fundamentals Summary

How do Cummins's earnings and revenue compare to its market cap?
CMI fundamental statistics
Market CapUS$31.83b
Earnings (TTM)US$2.21b
Revenue (TTM)US$23.15b

14.9x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMI income statement (TTM)
RevenueUS$23.15b
Cost of RevenueUS$17.48b
Gross ProfitUS$5.67b
ExpensesUS$3.47b
EarningsUS$2.21b

Last Reported Earnings

Jul 04, 2021

Next Earnings Date

n/a

Earnings per share (EPS)15.00
Gross Margin24.51%
Net Profit Margin9.52%
Debt/Equity Ratio43.8%

How did CMI perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

36%

Payout Ratio

Valuation

Is Cummins undervalued compared to its fair value and its price relative to the market?

26.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMI ($228.33) is trading below our estimate of fair value ($309.37)

Significantly Below Fair Value: CMI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CMI is good value based on its PE Ratio (14.9x) compared to the US Machinery industry average (29x).

PE vs Market: CMI is good value based on its PE Ratio (14.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CMI is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: CMI is overvalued based on its PB Ratio (4.2x) compared to the US Machinery industry average (2.7x).


Future Growth

How is Cummins forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMI's forecast earnings growth (5.6% per year) is above the savings rate (2%).

Earnings vs Market: CMI's earnings (5.6% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: CMI's earnings are forecast to grow, but not significantly.

Revenue vs Market: CMI's revenue (4.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: CMI's revenue (4.7% 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 (28.9%)


Past Performance

How has Cummins performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMI has high quality earnings.

Growing Profit Margin: CMI's current net profit margins (9.5%) are higher than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: CMI's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: CMI's earnings growth over the past year (29.6%) exceeds its 5-year average (11.4% per year).

Earnings vs Industry: CMI earnings growth over the past year (29.6%) exceeded the Machinery industry 22.1%.


Return on Equity

High ROE: CMI's Return on Equity (25.4%) is considered high.


Financial Health

How is Cummins's financial position?


Financial Position Analysis

Short Term Liabilities: CMI's short term assets ($11.9B) exceed its short term liabilities ($6.6B).

Long Term Liabilities: CMI's short term assets ($11.9B) exceed its long term liabilities ($7.2B).


Debt to Equity History and Analysis

Debt Level: CMI's debt to equity ratio (43.8%) is considered high.

Reducing Debt: CMI's debt to equity ratio has increased from 26% to 43.8% over the past 5 years.

Debt Coverage: CMI's debt is well covered by operating cash flow (86.3%).

Interest Coverage: CMI's interest payments on its debt are well covered by EBIT (26.7x coverage).


Balance Sheet


Dividend

What is Cummins's current dividend yield, its reliability and sustainability?

2.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMI's dividend (2.54%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: CMI's dividend (2.54%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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 (35.7%), 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 (30.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Tom Linebarger (58 yo)

9.67yrs

Tenure

US$17,291,581

Compensation

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 ($USD17.29M) is above average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CMI's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: CMI's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cummins Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cummins Inc.
  • Ticker: CMI
  • Exchange: NYSE
  • Founded: 1919
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$31.826b
  • Shares outstanding: 143.61m
  • Website: https://www.cummins.com

Number of Employees


Location

  • Cummins Inc.
  • 500 Jackson Street
  • Box 3005
  • Columbus
  • Indiana
  • 47202-3005
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:55
End of Day Share Price2021/09/23 00:00
Earnings2021/07/04
Annual Earnings2020/12/31


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.