Our top pick for
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 61,600 staff and has a trailing 12-month revenue of around USD$20.2 billion.
|52-week range||USD$101.025 - USD$215.43|
|50-day moving average||USD$208.3266|
|200-day moving average||USD$172.7356|
|Wall St. target price||USD$215.06|
|Dividend yield||USD$5.24 (2.58%)|
|Earnings per share (TTM)||USD$11.284|
The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
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.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
|1 week (2020-09-17)||-100.00%|
|1 month (2020-08-27)||-100.00%|
|3 months (2020-06-26)||-100.00%|
|6 months (2020-03-27)||-100.00%|
|1 year (2019-09-27)||-100.00%|
|2 years (2018-09-27)||-100.00%|
|3 years (2017-09-27)||-100.00%|
|5 years (2015-09-25)||-100.00%|
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 current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 19x. In other words, Cummins shares trade at around 19x 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 "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.4777. 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 (earnings before interest, taxes, depreciation and amortisation) is USD$2.6 billion.
The EBITDA is a measure of a Cummins's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$20.2 billion|
|Operating margin TTM||9.26%|
|Gross profit TTM||USD$6 billion|
|Return on assets TTM||5.77%|
|Return on equity TTM||19.75%|
|Market capitalisation||USD$30.3 billion|
TTM: trailing 12 months
There are currently 3.1 million Cummins shares held short by investors – that's known as Cummins's "short interest". This figure is 26.5% down from 4.2 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) is the quantity of Cummins shares currently shorted divided by the average quantity of Cummins shares traded daily (recently around 841542.54742547). Cummins's SIR currently stands at 3.69. In other words for every 100,000 Cummins shares traded daily on the market, roughly 3690 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 0.02% of the outstanding shares (for every 100,000 Cummins shares in existence, roughly 20 shares are currently held short) or 0.0211% of the tradable shares (for every 100,000 tradable Cummins shares, roughly 21 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.
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.
Total ESG risk: 21.61
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Cummins's overall score of 21.61 (as at 08/01/2020) is pretty good – landing it in it in the 20th 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.).
Environmental score: 3.46/100
Cummins's environmental score of 3.46 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.
Social score: 8.28/100
Cummins's social score of 8.28 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.
Governance score: 5.87/100
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.
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.
|Total ESG score||21.61|
|Total ESG percentile||20.26|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
|Level of controversy||2|
Dividend payout ratio: 46.41% of net profits
Recently Cummins has paid out, on average, around 46.41% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.58% 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 2.58% return on their shares, in the form of dividend payments. In Cummins's case, that would currently equate to about $5.24 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 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 20 August 2020 (the "ex-dividend date").
Cummins's shares were split on a 2:1 basis on 3 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.
Over the last 12 months, Cummins's shares have ranged in value from as little as $101.025 up to $215.43. 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 1.1817. 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 Inc. designs, manufactures, distributes, and services diesel and natural gas engines, products worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and New Power. The company manufactures and markets 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 distributes parts, engines, and power generation products; and provides service solutions, such as engineering services, custom-designed assemblies, and repair services. The company offers emission solutions; and turbochargers for light-duty, mid-range, heavy-duty, and high-horsepower diesel markets, as well as provides air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and fuel systems for heavy-duty on-highway diesel engine applications and remanufactures fuel systems. It also provides 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 provides electrified power systems with components and subsystems, including battery, fuel cell, and hydrogen production technologies. The company offers electric and hybrid powertrains related components including filtration, after treatment, controls systems, air handling systems, automated transmissions, electric power generation systems, and hydrogen generation products. It sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.