Last Updated: 07 Nov 2024
Executive Summary
Cummins Inc. (CMI) is a global leader in the design, manufacture, and distribution of engines, filtration, and power generation products. With a market capitalization of $48.6 billion, CMI is a well-established company with a strong financial position. Recent financial performance has been positive, with revenue and earnings growth in the latest quarter. The company's trailing P/E ratio of 23.2 is slightly above the industry average, but its forward P/E of 16.23 indicates potential for future growth.
Company Overview
Cummins Inc. is headquartered in Columbus, Indiana and has operations in over 190 countries. The company's products are used in a wide range of applications, including commercial vehicles, industrial equipment, and power generation. CMI has a strong commitment to innovation and sustainability, and it continues to invest in new technologies to meet the evolving needs of its customers.
Fundamental Analysis
Revenue: $34.2 billion TTM
Net income: $4.4 billion TTM
EPS: $15.28 TTM
P/E ratio: 23.2
PEG ratio: 0.751
Return on equity: 18.9%
Debt-to-equity ratio: 0.54
Cummins Inc. has a strong financial profile with consistent revenue and earnings growth. The company's profitability metrics are also impressive, with a net profit margin of 5.69% and a return on equity of 18.9%. CMI's debt-to-equity ratio is slightly elevated, but it is still within a manageable range.
Technical Analysis
52-week high: $370.21
52-week low: $209.11
50-day moving average: $319.19
200-day moving average: $289.44
Cummins Inc.'s stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages, which indicates a bullish trend. The relative strength index (RSI) is also above 50, which suggests that the stock is not overbought.
Short Term Outlook
In the short term, Cummins Inc.'s stock price is likely to continue to trend higher. The company's strong financial performance and positive technical indicators suggest that the stock is undervalued. However, investors should be aware of the potential for volatility in the market, which could impact the stock price.
Long Term Outlook
In the long term, Cummins Inc. is well-positioned for growth. The company's strong brand recognition, global reach, and commitment to innovation are all factors that will contribute to its future success. The company is also benefiting from the growing demand for sustainable energy solutions.
Analyst Recommendations
Analysts are generally bullish on Cummins Inc. The average analyst rating is "hold," with 4 strong buy ratings, 3 buy ratings, 14 hold ratings, 2 sell ratings, and 0 strong sell ratings. The average analyst target price is $343.82, which represents a potential upside of 3.4% from the current stock price.
