CMI Stock Overview
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$197.31|
|52 Week High||US$265.09|
|52 Week Low||US$187.72|
|1 Month Change||-4.62%|
|3 Month Change||-9.51%|
|1 Year Change||-23.16%|
|3 Year Change||23.38%|
|5 Year Change||25.96%|
|Change since IPO||2,965.01%|
Recent News & Updates
Oh My, Oh My, Cummins' Dividend Is Attractive
We can finally ignore the yield vs. growth debate as Cummins offers both. The company has a decent dividend yield of 3.0% and very satisfying dividend growth thanks to a stellar business model. Valuation-wise, investors benefit from a steep drawdown as investors have priced in lower economic growth. The company just reported fantastic earnings as it is in a good spot to offset input inflation, thanks to strong demand and higher prices.
Are Investors Undervaluing Cummins Inc. (NYSE:CMI) By 43%?
How far off is Cummins Inc. ( NYSE:CMI ) from its intrinsic value? Using the most recent financial data, we'll take a...
|CMI||US Machinery||US Market|
Return vs Industry: CMI underperformed the US Machinery industry which returned -19.3% over the past year.
Return vs Market: CMI underperformed the US Market which returned -12.9% over the past year.
|CMI Average Weekly Movement||4.8%|
|Machinery Industry Average Movement||5.7%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: CMI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: CMI's weekly volatility (5%) has been stable over the past year.
About the Company
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
|CMI fundamental statistics|
Is CMI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CMI income statement (TTM)|
|Cost of Revenue||US$18.57b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||13.79|
|Net Profit Margin||8.00%|
How did CMI perform over the long term?See historical performance and comparison
2.9%Current Dividend Yield
Is Cummins undervalued compared to its fair value and its price relative to the market?
Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CMI ($197.31) is trading below our estimate of fair value ($324.42)
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 (14.3x) compared to the US Machinery industry average (21.3x).
PE vs Market: CMI is good value based on its PE Ratio (14.3x) compared to the US market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: CMI is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: CMI is overvalued based on its PB Ratio (3.3x) compared to the US Machinery industry average (2.1x).
How is Cummins forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CMI's forecast earnings growth (4.7% per year) is above the savings rate (1.9%).
Earnings vs Market: CMI's earnings (4.7% per year) are forecast to grow slower than the US market (12.5% per year).
High Growth Earnings: CMI's earnings are forecast to grow, but not significantly.
Revenue vs Market: CMI's revenue (3.6% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: CMI's revenue (3.6% 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 (26.6%)
How has Cummins performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CMI has high quality earnings.
Growing Profit Margin: CMI's current net profit margins (8%) are lower than last year (9%).
Past Earnings Growth Analysis
Earnings Trend: CMI's earnings have grown by 9% per year over the past 5 years.
Accelerating Growth: CMI's earnings growth over the past year (3.7%) is below its 5-year average (9% per year).
Earnings vs Industry: CMI earnings growth over the past year (3.7%) underperformed the Machinery industry 24%.
Return on Equity
High ROE: CMI's Return on Equity (21.1%) is considered high.
How is Cummins's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: CMI's short term assets ($12.6B) exceed its short term liabilities ($7.5B).
Long Term Liabilities: CMI's short term assets ($12.6B) exceed its long term liabilities ($7.2B).
Debt to Equity History and Analysis
Debt Level: CMI's net debt to equity ratio (14%) is considered satisfactory.
Reducing Debt: CMI's debt to equity ratio has increased from 26% to 43.9% over the past 5 years.
Debt Coverage: CMI's debt is well covered by operating cash flow (50.6%).
Interest Coverage: CMI's interest payments on its debt are well covered by EBIT (31.3x coverage).
What is Cummins's current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CMI's dividend (2.94%) is higher than the bottom 25% of dividend payers in the US market (1.58%).
High Dividend: CMI's dividend (2.94%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Stability and Growth of Payments
Stable Dividend: CMI's dividends per share have been stable in the past 10 years.
Growing Dividend: CMI's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (42%), CMI's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (64%), CMI's dividend payments are covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Linebarger (58 yo)
Mr. N. Thomas Linebarger, also known as Tom, serves as Chief Executive Officer at Cummins Norway AS. Mr. Linebarger serves as Chief Executive Officer of Cummins Inc. at Cummins Power Systems, LLC. He has b...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD15.65M) is about average for companies of similar size in the US market ($USD13.34M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Experienced Management: CMI's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Experienced Board: CMI's board of directors are seasoned and experienced ( 12.7 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 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
- Implied Market Cap: US$27.840b
- Shares outstanding: 141.10m
- Website: https://www.cummins.com
Number of Employees
- Cummins Inc.
- 500 Jackson Street
- Box 3005
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/21 00:00|
|End of Day Share Price||2022/05/20 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.