Fundamentals for Cummins Inc.
CMI's Forward PE being in a good range suggests that its stock price is aligned well with earnings. The stock is not considered overpriced, offering room for future growth,...
Business Operations:
Sector: IndustrialsIndustry: Specialty Industrial Machinery
Cummins Inc. offers various power solutions worldwide. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. It offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; and on- and off-highway, and other products. The company also provides aftertreatment technology and solutions comprising custom engineering systems and integrated controls, oxidation catalysts, particulate filters, and selective catalytic reduction systems, as well as engineered components, including dosers; turbochargers, fuel systems, and valvetrain technologies; electronic control modules, sensors, and supporting software; and automated manual transmissions, and automatic transmissions for internal combustion engines. In addition, it sells and offers support services power generation systems, high-horsepower engines, and heavy-duty and medium-duty engines; offers application engineering services, custom-designed assemblies, and in-shop and field-based repair services; and retail and wholesale aftermarket parts. Further, the company offers standby and prime power generators, controls, paralleling systems, and transfer switches; turnkey solutions for distributed generation and energy management applications using natural gas, diesel, battery energy storage systems, and newer alternative sustainable fuels; diesel and natural gas high-speed, high-horsepower engines; and A/C generator/alternator products. Additionally, it provides electrified power systems, including batteries, fuel cells, and electric powertrain technologies. It sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
Revenue projections:
Financial Ratios:
| currentRatio | 1.727000 |
|---|---|
| forwardPE | 14.952322 |
| debtToEquity | 59.586000 |
| earningsGrowth | 0.047000 |
| revenueGrowth | 0.094000 |
| grossMargins | 0.257720 |
| operatingMargins | 0.118960 |
| trailingEps | 19.590000 |
| forwardEps | 34.576570 |
Cummins Inc.'s current ratio is 1.727, signaling that the company has sufficient cash reserves and current assets to cover its short-term debt obligations. This suggests financial stability, as Cummins Inc. should not face any issues meeting its short-term liabilities with available resources.
CMI's Forward PE being in a good range suggests that its stock price is aligned well with earnings. The stock is not considered overpriced, offering room for future growth, which makes it an appealing investment opportunity with the potential for value appreciation.
CMI's forward EPS surpasses its trailing EPS, indicating that the company is expected to be more profitable in the current financial year. This reflects growing confidence in CMI's earnings potential, suggesting stronger financial performance compared to the previous year.
Price projections:
Insider Transactions:
21 CMI shares were sold in recent transactions, with market price at 525.4942830403646.Throughout the period under consideration, there were no sell transactions.The recent trend of increased buying at Cummins Inc.'s current price levels may indicate a favorable market sentiment. This could point to a positive outlook for the stock, as investors show growing confidence through higher buy activity.
Recommendation changes over time:
The recent buy bias for CMI from analysts signals strong confidence in the stock's potential. This positive sentiment could encourage investors to see CMI as a smart place to invest their money, especially those looking for stable, long-term returns in a well-established company.