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Cummins Inc CMI

Morningstar Rating
$271.78 +1.29 (0.48%)
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Company Report

We Think Truck Production Will Normalize in 2024

We believe Cummins will be the top supplier of truck engines and components, despite increasing emissions regulation. For over a century, the company has been the pre-eminent manufacturer of diesel engines, which has led to its place as one of the best heavy- and medium-duty engine brands. Cummins' strong brand is underpinned by its high-performing and extremely durable engines. Customers also value Cummins’ ability to enhance the value of their trucks, leading to product differentiation.

Price vs Fair Value

CMI is trading at a 13% premium.
Price
$270.36
Fair Value
$185.00
Uncertainty
Medium
1-Star Price
$335.00
5-Star Price
$756.00
Economic Moat
Kxhhb
Capital Allocation
Xkybqvy

Bulls Say, Bears Say

Bulls

Strong freight demand in the truck market should lead to more new truck orders, substantially boosting Cummins’ revenue growth.

Bears

Freight demand could weaken on the back of falling consumer spending and slow industrial recovery, causing truck operators to hold off new truck purchases.

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News

Trading Information

Previous Close Price
$270.49
Day Range
$270.02271.96
52-Week Range
$203.20273.23
Bid/Ask
$271.61 / $271.95
Market Cap
$38.58 Bil
Volume/Avg
681 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
13.87
Price/Sales
1.13
Dividend Yield (Trailing)
2.44%
Dividend Yield (Forward)
2.49%
Total Yield
2.44%

Company Profile

Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway equipment, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Mid Core
Total Number of Employees
75,500

Competitors

Valuation

Metric
CMI
HON
CAT
Price/Earnings (Normalized)
13.8721.2215.54
Price/Book Value
4.338.128.44
Price/Sales
1.133.602.52
Price/Cash Flow
24.9226.5113.29
Price/Earnings
CMI
HON
CAT

Financial Strength

Metric
CMI
HON
CAT
Quick Ratio
0.650.840.74
Current Ratio
1.181.271.35
Interest Coverage
4.709.9425.57
Quick Ratio
CMI
HON
CAT

Profitability

Metric
CMI
HON
CAT
Return on Assets (Normalized)
2.59%9.49%12.80%
Return on Equity (Normalized)
8.41%34.73%59.03%
Return on Invested Capital (Normalized)
4.90%16.29%19.53%
Return on Assets
CMI
HON
CAT
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