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Cummins Inc CMI

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Stock XNYS Rating as of
$287.85 −4.29 (1.47%)
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As of Delayed Price Closed
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Company Report

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Cummins: Raises 2030 Targets at Its Analyst Day

Dawit Woldemariam

Cummins shared updates to its 2030 targets at its analyst day on May 16. Following the event, we’re leaving our $246 fair value estimate unchanged. Our key takeaway was that the company shows strong promise in the zero-emission transition. However, we think Cummins will need to execute in a few areas (namely, commercializing electrolyzers) before we become more optimistic about the company’s long-term prospects.

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Price vs Fair Value

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CMI is trading at a 872% premium.
Price
$287.85
Fair Value
$676.00
Uncertainty
Medium
1-Star Price
$266.70
5-Star Price
$292.10
Economic Moat
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Capital Allocation
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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

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Trading Information

Previous Close Price
$292.14
Day Range
$286.40–293.90
52-Week Range
$203.18–304.25
Bid/Ask
$268.00 / $330.00
Market Cap
$39.37 Bil
Volume/Avg
1.2 Mil / 3.0 Mil

Key Statistics

Price/Earnings (Normalized)
15.04
Price/Sales
1.21
Dividend Yield (Trailing)
2.30%
Dividend Yield (Forward)
2.33%
Total Yield
2.30%

Company Profile

Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway machinery, 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 Growth
Total Number of Employees
75,500
Website
https://www.cummins.com

Competitors

Valuation

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Metric
CMI
CNHI
CAT
Price/Earnings (Normalized)
 15.046.8016.01
Price/Book Value
 4.341.849.73
Price/Sales
 1.210.632.66
Price/Cash Flow
 27.285.5013.69
Price/Earnings
CMI
CNHI
CAT

Financial Strength

Metric
CMI
CNHI
CAT
Quick Ratio
 0.651.670.73
Current Ratio
 1.182.021.35
Interest Coverage
 4.703.0126.54
Quick Ratio
CMI
CNHI
CAT

Profitability

Metric
CMI
CNHI
CAT
Return on Assets (Normalized)
 3.38%5.17%13.02%
Return on Equity (Normalized)
 11.08%29.09%59.16%
Return on Invested Capital (Normalized)
 6.47%10.13%19.73%
Return on Assets
CMI
CNHI
CAT
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