How to buy Cummins stock

Cummins Inc is a specialty industrial machinery business based in the US. Cummins shares (CMI) are listed on the NYSE and all prices are listed in US Dollars. Cummins employs 57,825 staff and has a trailing 12-month revenue of around 0.00.

Cummins share price

Use our graph to track the performance of CMI stocks over time.

Cummins shares at a glance

• Key figures

Information last updated 2021-05-07.

52-week range	$139.66 - $277.09
50-day moving average	$260.22
200-day moving average	$242.57
Wall St. target price	$279.31
PE ratio	21.0154
Dividend yield	$5.322 (2%)
Earnings per share (TTM)	$12.67

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Is it a good time to buy Cummins stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Technical Analysis of Cummins Inc by TradingView

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Is Cummins under- or over-valued?

Valuing Cummins stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Cummins's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Cummins's P/E ratio

Cummins's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 21x. In other words, Cummins shares trade at around 21x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Cummins's PEG ratio

Cummins's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.7589. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Cummins's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Cummins's EBITDA

Cummins's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $2.7 billion.

The EBITDA is a measure of a Cummins's overall financial performance and is widely used to measure a its profitability.

Cummins financials

Revenue TTM	$20.9 billion
Operating margin TTM	9.85%
Gross profit TTM	$4.9 billion
Return on assets TTM	5.98%
Return on equity TTM	22.22%
Profit margin	9%
Book value	$55.46
Market capitalisation	$38.9 billion

TTM: trailing 12 months

Shorting Cummins shares

There are currently 3.8 million Cummins shares held short by investors – that's known as Cummins's "short interest". This figure is 22.8% up from 3.1 million last month.

There are a few different ways that this level of interest in shorting Cummins shares can be evaluated.

Cummins's "short interest ratio" (SIR)

Cummins's "short interest ratio" (SIR) is the quantity of Cummins shares currently shorted divided by the average quantity of Cummins shares traded daily (recently around 1.1 million). Cummins's SIR currently stands at 3.54. In other words for every 100,000 Cummins shares traded daily on the market, roughly 3540 shares are currently held short.

However Cummins's short interest can also be evaluated against the total number of Cummins shares, or, against the total number of tradable Cummins shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Cummins's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 Cummins shares in existence, roughly 30 shares are currently held short) or 0.0262% of the tradable shares (for every 100,000 tradable Cummins shares, roughly 26 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Cummins.

Find out more about how you can short Cummins stock.

Cummins's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Cummins.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Cummins's total ESG risk score

Total ESG risk: 19.33

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Cummins's overall score of 19.33 (as at 12/31/2018) is excellent – landing it in it in the 16th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Cummins is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Cummins's environmental score

Environmental score: 5.72/100

Cummins's environmental score of 5.72 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Cummins is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Cummins's social score

Social score: 7.67/100

Cummins's social score of 7.67 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Cummins is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Cummins's governance score

Governance score: 6.45/100

Cummins's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Cummins is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Cummins's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Cummins scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Cummins has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Cummins Inc was last rated for ESG on: 2019-01-01.

Total ESG score	19.33
Total ESG percentile	16.18
Environmental score	5.72
Environmental score percentile	3
Social score	7.67
Social score percentile	3
Governance score	6.45
Governance score percentile	3
Level of controversy	2

Cummins share dividends

Dividend payout ratio: 31.89% of net profits

Recently Cummins has paid out, on average, around 31.89% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.03% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Cummins shareholders could enjoy a 2.03% return on their shares, in the form of dividend payments. In Cummins's case, that would currently equate to about $5.322 per share.

While Cummins's payout ratio might seem fairly standard, it's worth remembering that Cummins may be investing much of the rest of its net profits in future growth.

Cummins's most recent dividend payout was on 3 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 17 February 2021 (the "ex-dividend date").

Have Cummins's shares ever split?

Cummins's shares were split on a 2:1 basis on 2 January 2008. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Cummins shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Cummins shares which in turn could have impacted Cummins's share price.

Cummins share price volatility

Over the last 12 months, Cummins's shares have ranged in value from as little as $139.6577 up to $277.09. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Cummins's is 1.0791. This would suggest that Cummins's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

Cummins overview

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. It also provides power generation systems, high-horsepower engines, heavy and medium duty engines, application engineering services, custom-designed assemblies, retail and wholesale aftermarket parts, and in-shop and field-based repair services. In addition, the company offers emission solutions; turbochargers; air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and electronic control modules, sensors, and supporting software, as well as new, replacement, and remanufactured fuel systems. Further, it provides automated transmissions; standby and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford and AVK brands; and electrified power systems with components and subsystems, including battery, fuel cell, and hydrogen production technologies.

Frequently asked questions

• What percentage of Cummins is owned by insiders or institutions?

  Currently 0.439% of Cummins shares are held by insiders and 86.314% by institutions.

• How many people work for Cummins?

  Latest data suggests 57,825 work at Cummins.

• When does the fiscal year end for Cummins?

  Cummins's fiscal year ends in December.

• Where is Cummins based?

  Cummins's address is: 500 Jackson Street, Columbus, IN, United States, 47202-3005

• What is Cummins's ISIN number?

  Cummins's international securities identification number is: US2310211063

• What is Cummins's CUSIP number?

  Cummins's Committee on Uniform Securities Identification Procedures number is: 125761304