Cummins logged a -1.9% change during today's afternoon session, and is now trading at a price of $244.33 per share. The S&P 500 index moved -0.8% and the Nasdaq posted a -0.7% change. CMI's trading volume is 219,958 compared to the stock's average volume of 942,754.
Shares of Cummins have a 50-day average price of $244.067 as of January 2022. Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. The large-cap Industrials company has 59,900 full time employees and is based in Columbus, IN. Cummins has returned a 2.1% dividend yield over the last 12 months.
Low Leverage and Stable Revenues:
2019-12-31 | 2020-12-31 | 2021-12-31 | |
---|---|---|---|
Revenue (MM) | $23,571 | $19,811 | $24,021 |
Revenue Growth | n/a | -15.95% | 21.25% |
Gross Margins | 25.4% | 24.7% | 23.7% |
Gross Margins Growth | n/a | -2.76% | -4.05% |
Operating Margins | 10.7% | 9.3% | 9.2% |
Operating Margins Growth | n/a | -13.08% | -1.08% |
Earnings Per Share | $14.48 | $12.01 | $14.61 |
EPS Growth | n/a | -17.06% | 21.65% |
Free Cash Flow (MM) | $2,406 | $2,147 | $1,470 |
FCF Growth | n/a | -10.76% | -31.53% |
Capital Expenditures (MM) | -$775 | -$575 | -$786 |
Net Debt / EBITDA | 0.37 | 0.29 | 0.48 |
Cummins Is Too Expensive at Current Levels:
Compared to the Industrials sector's average of 21.46, Cummins has a trailing twelve month P/E ratio of 20.3 and, according to its EPS guidance of 17.03, an expected P/E ratio of 14.3. Cummins's PEG ratio is 0.48 based on its 42.0% average growth rate of historical and projected earnings per share. This suggests that company's shares are undervalued.
Cummins's P/B ratio is 4.5 compared to its sector average of 3.7. The company is likely overvalued in terms of its equity. The company's shares are currently trading 101.2% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 1-year average EPS * book value per share) = √(22.5 * 12.01 * 54.599) = $121.47
Cummins Is the Subject of Mixed Market Indicators:
19 analysts are following Cummins and have set target prices ranging from $190 to $303.9 per share. On average, they have given the company a rating of buy. At the current price of $244.33, CMI is trading -0.56% away from its average analyst target price of $245.71 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 2.4% of the company's shares are tied to short positions. Institutions own 84.3% of Cummins's shares, while the insider ownership rate stands at 0.41%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $3,226,092,296.