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How to buy Cummins stock in Canada | $219.54
Own Cummins shares in just a few minutes.
Cummins is a specialty industrial machinery business based in the US. Cummins stocks (CMI.US) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was $229.71 – a decrease of 6.36% over the previous week. Cummins employs 57,825 staff and has a trailing 12-month revenue of around $23.2 billion.
How to buy Cummins stock in Canada
- Choose a platform. If you're a beginner, our stock trading table below can help you choose.
- Open your account. You'll need your ID, bank details and national insurance number.
- Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
- Search the platform for stock code: CMI in this case.
- Research Cummins stocks. The platform should provide the latest information available.
- Buy your Cummins stocks. It's that simple.
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.
What's in this guide?
- Can I buy shares in Cummins?
- Has coronavirus impacted Cummins shares?
- Cummins shares summary
- Compare share dealing platforms
- Is Cummins stock a buy or sell?
- Cummins performance over time
- Can I short Cummins shares?
- Is Cummins suitable for ethical investing?
- Are Cummins shares over-valued?
- Cummins's financials
- How volatile are Cummins shares?
- Does Cummins pay a dividend?
- Have Cummins shares ever split?
- Other common questions
How has Coronavirus impacted Cummins's stock price?
Since the stock market crash in March caused by coronavirus, Cummins's stock price has had significant positive movement.
Its last market close was $219.54, which is 23.72% up on its pre-crash value of $167.46 and 117.31% up on the lowest point reached during the March crash when the stocks fell as low as $101.025.
If you had bought $1,000 worth of Cummins stocks at the start of February 2020, those stocks would have been worth $630.95 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $1,347.98.
Cummins stock priceUse our graph to track the performance of CMI stocks over time.
Cummins stocks at a glance
|Latest market close||$219.54|
|52-week range||$195.1894 - $273.9359|
|50-day moving average||$234.5246|
|200-day moving average||$249.5648|
|Wall St. target price||$284.81|
|Dividend yield||$5.361 (2.33%)|
|Earnings per share (TTM)||$14.869|
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Note: The dollar amounts in the table below are in Canadian dollars.
Cummins price performance over time
|1 week (2021-09-15)||-6.36%|
|1 month (2021-08-20)||-5.24%|
|3 months (2021-06-22)||-7.37%|
|6 months (2021-03-22)||-16.68%|
|1 year (2020-09-22)||7.47%|
|2 years (2019-09-20)||35.88%|
|3 years (2018-09-21)||45.37%|
|5 years (2016-09-22)||80.07%|
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 15x. In other words, Cummins stocks trade at around 15x 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 stocks 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 1.1553. A low ratio can be interpreted as meaning the stocks offer better value, while a higher ratio can be interpreted as meaning the stocks 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 stock prices of multiple high-growth companies.
Cummins's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$3.1 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$23.2 billion|
|Operating margin TTM||10.39%|
|Gross profit TTM||USD$4.9 billion|
|Return on assets TTM||7%|
|Return on equity TTM||26.44%|
|Market capitalisation||USD$32.7 billion|
TTM: trailing 12 months
How to short and sell Cummins stocks
- Create a CFD or spread betting account.
- Search for the stock code. E.g. "CMI.US"
- Choose your position size.
- Select "sell" rather than "buy".
- Confirm your position and keep tabs on it. You may wish to set limits on your position.
There are currently 3.1 million Cummins stocks held short by investors – that's known as Cummins's "short interest". This figure is 10.2% down from 3.5 million last month.
There are a few different ways that this level of interest in shorting Cummins stocks can be evaluated.
Cummins's "short interest ratio" (SIR)
Cummins's "short interest ratio" (SIR) is the quantity of Cummins stocks currently shorted divided by the average quantity of Cummins stocks traded daily (recently around 1.1 million). Cummins's SIR currently stands at 2.82. In other words for every 100,000 Cummins stocks traded daily on the market, roughly 2820 stocks are currently held short.
However Cummins's short interest can also be evaluated against the total number of Cummins stocks, or, against the total number of tradable Cummins stocks (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 stocks (for every 100,000 Cummins stocks in existence, roughly 20 stocks are currently held short) or 0.0219% of the tradable stocks (for every 100,000 tradable Cummins stocks, roughly 22 stocks are currently held short).
Such a low SIR usually points to an optimistic outlook for the stock 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 01/01/2019) 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
|Total ESG score||19.33|
|Total ESG percentile||16.18|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
|Level of controversy||2|
Cummins stock dividends
Dividend payout ratio: 36.94% of net profits
Recently Cummins has paid out, on average, around 36.94% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.52% 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 2.52% return on their shares, in the form of dividend payments. In Cummins's case, that would currently equate to about $5.361 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 2 September 2021. The latest dividend was paid out to all shareholders who bought their stocks by 19 August 2021 (the "ex-dividend date").
Have Cummins stocks ever split?
Cummins stocks 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 stocks – just the quantity. However, indirectly, the new 50% lower stock price could have impacted the market appetite for Cummins stocks which in turn could have impacted Cummins's stock price.
Cummins stock price volatility
Over the last 12 months, Cummins's stocks have ranged in value from as little as $195.1894 up to $273.9359. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a stocks volatility in relation to the market. The market (NYSE average) beta is 1, while Cummins's is 1.0535. This would suggest that Cummins's stocks 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. Additionally, it offers filtration, aftertreatment, controls systems, air handling systems, automated transmissions, and electric power generation systems. The company 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.
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