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Cummins Inc CMI

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Stock XNYS Rating as of
$517.00 +0.43 (0.08%)
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As of Delayed Price Post-Trading: $518.50 +1.50

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Power Systems Pivots Cummins Away From Truck Engines

George Maglares

Cummins has decades of experience and market leadership providing diesel engines, specifically to the medium- and heavy-duty truck markets. Over time, the company has acquired more capabilities in other heavy vehicle components such as emissions systems, drivetrains, and brakes (for example, the company’s nearly $4 billion acquisition of Meritor in 2022). Cummins makes generators and engines for various industries, and it is seeing increased demand in the rapidly expanding data center market, which has grown to 10% of sales.

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Price vs Fair Value

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CMI is trading at a LOCK|^l&<$& premium.
Price
$516.57
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Bulls Say, Bears Say

Bulls

Cummins will continue to gain engine market share owing to its superior products and engineering advantages, enhancing returns.

Bears

Trade wars and/or supply chain disruptions could reduce freight demand.

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Trading Information

Previous Close Price
$516.57
Day Range
$507.20–525.62
52-Week Range
$400.72–737.76
Bid/Ask
$517.15 / $518.50
Shares Outstanding
137.66M
Market Cap
$71.17B
Volume/Avg
2M / 994,602

Key Statistics

Price/Earnings (Normalized)
21.30
Price/Sales
2.07
Dividend Yield (Trailing)
1.59%
Dividend Yield (Forward)
1.70%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
1.59%

Company Profile

Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of the world. Much of Cummins’ foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins’ business model is unique as it competes with many of its heavy-duty truck manufacturer customers, which also make their own engines.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Mid Core
Total Number of Employees
67,400
Website
https://www.cummins.com

Competitors

Valuation

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Metric
CMI
DE
PCAR
Price/Earnings (Normalized)
 21.3037.5823.07
Price/Book Value
 5.546.482.84
Price/Sales
 2.073.882.08
Price/Cash Flow
 15.8024.4615.39
Price/Earnings
CMI
DE
PCAR

Financial Strength

Metric
CMI
DE
PCAR
Quick Ratio
 0.981.982.81
Current Ratio
 1.732.203.12
Interest Coverage
 12.523.22—
Quick Ratio
CMI
DE
PCAR

Profitability

Metric
CMI
DE
PCAR
Return on Assets (Normalized)
 8.98%4.68%5.69%
Return on Equity (Normalized)
 25.16%18.74%12.82%
Return on Invested Capital (Normalized)
 14.86%7.86%7.01%
Return on Assets
CMI
DE
PCAR

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