Morningstar

Cummins Inc CMI

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Stock XNYS Rating as of
$331.74 +4.39 (1.34%)
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As of Delayed Price Post-Trading: $332.23 +0.49

Company Report

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Cummins Is Positioned for the Long Term, Despite the Trucking Pullback and an Evolving Industry

Matthew Young

We believe Cummins will remain the top supplier of truck engines and components, despite intensifying emissions regulation. For more than a century, the company has been the pre-eminent manufacturer of diesel engines, establishing its place as one of the best heavy- and medium-duty engine brands. Cummins' strong brand is supported in part by its high-performing and durable engines. Customers also value Cummins’ ability to enhance the value of their trucks, leading to product differentiation.

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Price vs Fair Value

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CMI is trading within a range we consider fairly valued.
Price
$327.35
Fair Value
$696.00
Uncertainty
Medium
1-Star Price
$619.30
5-Star Price
$495.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Cummins should benefit from increasing emissions regulation, pushing customers to buy emissions solutions, such as aftertreatment systems that turn engine pollutants into harmless emissions.

Bears

Freight demand across the trucking industry is currently soft due in part to muted retail restocking, causing carriers to hold off new truck purchases.

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News

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Trading Information

Previous Close Price
$327.35
Day Range
$326.03–331.89
52-Week Range
$212.80–333.43
Bid/Ask
$329.91 / $332.23
Market Cap
$45.46 Bil
Volume/Avg
691,513 / 746,510

Key Statistics

Price/Earnings (Normalized)
17.34
Price/Sales
1.37
Dividend Yield (Trailing)
2.07%
Dividend Yield (Forward)
2.19%
Total Yield
2.07%

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 Value
Total Number of Employees
75,500
Website
https://www.cummins.com

Competitors

Valuation

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Metric
CMI
CAT
CNH
Price/Earnings (Normalized)
 17.3417.777.05
Price/Book Value
 4.7611.241.83
Price/Sales
 1.373.000.62
Price/Cash Flow
 28.0615.105.53
Price/Earnings
CMI
CAT
CNH

Financial Strength

Metric
CMI
CAT
CNH
Quick Ratio
 0.700.695.61
Current Ratio
 1.341.287.02
Interest Coverage
 7.7525.742.34
Quick Ratio
CMI
CAT
CNH

Profitability

Metric
CMI
CAT
CNH
Return on Assets (Normalized)
 3.45%13.12%4.58%
Return on Equity (Normalized)
 11.32%60.21%26.04%
Return on Invested Capital (Normalized)
 6.55%19.89%9.54%
Return on Assets
CMI
CAT
CNH

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