We elected to raise our fair value estimate by nearly 1% to $255 (from $253 previously), following third-quarter earnings. The increase to our fair value is largely attributed to the time value of money since our last update but was partially offset by slight tweaks to our near-term sales and margin expectations.
Strong freight demand in the truck market should lead to more new truck orders, substantially boosting Cummins’ revenue growth.
Freight demand could weaken on the back of falling consumer spending and slow industrial recovery, causing truck operators to hold off new truck purchases.
|
Metric
|
CMI
|
HON
|
CNHI
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.71 | 21.08 | 6.50 |
Price/Book Value | 3.07 | 7.45 | 1.85 |
Price/Sales | 0.99 | 3.59 | 0.61 |
Price/Cash Flow | 8.34 | 30.55 | 5.20 |
|
Metric
|
CMI
|
HON
|
CNHI
|
|---|---|---|---|
Quick Ratio | 0.76 | 0.92 | 4.58 |
Current Ratio | 1.43 | 1.35 | 5.86 |
Interest Coverage | 10.59 | 10.25 | 3.41 |
|
Metric
|
CMI
|
HON
|
CNHI
|
|---|---|---|---|
Return on Assets (Normalized) | 9.22% | 9.55% | 5.56% |
Return on Equity (Normalized) | 29.85% | 34.05% | 31.06% |
Return on Invested Capital (Normalized) | 16.23% | 16.47% | 10.11% |
|
Ticker
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Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
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