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Cummins 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 59,900 staff and has a trailing 12-month revenue of around $26.2 billion.
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| Latest market close | $250.91 |
|---|---|
| 52-week range | $181.87 - $254.47 |
| 50-day moving average | $244.43 |
| 200-day moving average | $220.34 |
| Wall St. target price | $258.49 |
| PE ratio | 18.5808 |
| Dividend yield | $5.92 (2.54%) |
| Earnings per share (TTM) | $13.43 |
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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.
Historical closes compared with the close of $250.91 from 2023-02-01
| 1 week (2023-01-26) | 1.26% |
|---|---|
| 1 month (2022-12-30) | 3.56% |
| 3 months (2022-11-02) | 4.00% |
| 6 months (2022-08-02) | 14.78% |
| 1 year (2022-01-29) | N/A |
|---|---|
| 2 years (2021-02-02) | 7.27% |
| 3 years (2020-01-31) | 56.85% |
| 5 years (2018-02-02) | 36.13% |
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 1.5664. 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 $3.2 billion.
The EBITDA is a measure of a Cummins's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $26.2 billion |
|---|---|
| Operating margin TTM | 9.53% |
| Gross profit TTM | $5.7 billion |
| Return on assets TTM | 5.9% |
| Return on equity TTM | 20.83% |
| Profit margin | 7.32% |
| Book value | $59.42 |
| Market capitalisation | $35.2 billion |
TTM: trailing 12 months
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: 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.).
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.
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.
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.
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.
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 |
Dividend payout ratio: 56.55% of net profits
Recently Cummins has paid out, on average, around 56.55% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.54% 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 2.54% return on their shares, in the form of dividend payments. In Cummins's case, that would currently equate to about $5.92 per share.
Cummins's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Cummins's most recent dividend payout was on 30 November 2022. The latest dividend was paid out to all shareholders who bought their shares by 16 November 2022 (the "ex-dividend date").
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.
Over the last 12 months, Cummins's shares have ranged in value from as little as $181.8691 up to $254.47. 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 1.0398. 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, 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.
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