Is Cummins Stock a Good Investment?

Cummins Investment Advice

CMI

To provide specific investment advice or recommendations on Cummins stock, we recommend investors consider the following general factors when evaluating Cummins. This will help you to make an informed decision on whether to include Cummins in one of your diversified portfolios:

Examine Cummins' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Cummins' leadership team and their track record. Good management can help Cummins navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Construction Machinery & Heavy Transportation Equipment space and any emerging trends that could impact Cummins' business and its evolving consumer preferences.
Compare Cummins' performance and market position to its competitors. Analyze how Cummins is positioned in terms of product offerings, innovation, and market share.
Check if Cummins pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Cummins' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Cummins stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Cummins is a good investment.

Sell

Buy

Strong Buy

Macroaxis provides advice on Cummins to complement and cross-verify current analyst consensus on Cummins. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Cummins is not overpriced, please confirm all Cummins fundamentals, including its cash and equivalents, earnings per share, and the relationship between the revenue and current ratio . Given that Cummins has a price to earning of 18.70 X, we suggest you to validate Cummins market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Solid	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Cummins Stock

Researching Cummins' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 87.0% of the company shares are held by institutions such as insurance companies. The book value of Cummins was currently reported as 75.19. The company has Price/Earnings To Growth (PEG) ratio of 0.74. Cummins recorded earning per share (EPS) of 15.28. The entity last dividend was issued on the 22nd of November 2024. The firm had 2:1 split on the 3rd of January 2008.

To determine if Cummins is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Cummins' research are outlined below:

	Cummins is unlikely to experience financial distress in the next 2 years
	Cummins has a strong financial position based on the latest SEC filings
	Over 87.0% of the company shares are held by institutions such as insurance companies
	Latest headline from investing.com: Cummins VP Sharon Barner sells 798,402 in stock

Cummins Quarterly Accounts Payable

4.21 Billion

Cummins uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Cummins. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Cummins' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	6th of February 2024 Upcoming Quarterly Report	View
	7th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	6th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Cummins' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Cummins' investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2001-07-12	2001-06-30	0.01	0.02	0.01	100
2001-01-26	2000-12-31	-0.1	-0.11	-0.01	10
2003-10-28	2003-09-30	0.17	0.15	-0.02	11
1996-10-15	1996-09-30	0.15	0.17	0.02	13
2009-04-30	2009-03-31	0.23	0.26	0.03	13
2004-01-27	2003-12-31	0.24	0.27	0.03	12
2002-07-19	2002-06-30	0.05	0.08	0.03	60
1998-04-16	1998-03-31	0.21	0.24	0.03	14

Know Cummins' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Cummins is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cummins backward and forwards among themselves. Cummins' institutional investor refers to the entity that pools money to purchase Cummins' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Public Investment Fund	2024-06-30	1.6 M
Northern Trust Corp	2024-09-30	1.6 M
Dimensional Fund Advisors, Inc.	2024-09-30	1.6 M
Ubs Asset Mgmt Americas Inc	2024-09-30	1.5 M
Stifel Financial Corp	2024-06-30	1.5 M
Hotchkis & Wiley Capital Management Llc	2024-09-30	1.4 M
Norges Bank	2024-06-30	1.3 M
Royal Bank Of Canada	2024-06-30	1.3 M
Lsv Asset Management	2024-09-30	1.2 M
Vanguard Group Inc	2024-09-30	16.7 M
Blackrock Inc	2024-06-30	12 M

Note, although Cummins' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Cummins' market capitalization trends

The company currently falls under 'Large-Cap' category with a total capitalization of 51.12 B.

Market Cap

29.81 Billion

Cummins' profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.03	0.04
Return On Capital Employed	0.09	0.10
Return On Assets	0.02	0.04
Return On Equity	0.08	0.10

The company has Net Profit Margin of 0.06 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.12 %, which entails that for every 100 dollars of revenue, it generated $0.12 of operating income.

Determining Cummins' profitability involves analyzing its financial statements and using various financial metrics to determine if Cummins is a good buy. For example, gross profit margin measures Cummins' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Cummins' profitability and make more informed investment decisions.

Cummins' Earnings Breakdown by Geography

Evaluate Cummins' management efficiency

Cummins has Return on Asset of 0.0689 % which means that on every $100 spent on assets, it made $0.0689 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1938 %, implying that it generated $0.1938 on every 100 dollars invested. Cummins' management efficiency ratios could be used to measure how well Cummins manages its routine affairs as well as how well it operates its assets and liabilities. The Cummins' current Return On Tangible Assets is estimated to increase to 0.04. The Cummins' current Return On Capital Employed is estimated to increase to 0.1. As of now, Cummins' Other Current Assets are increasing as compared to previous years. The Cummins' current Total Current Assets is estimated to increase to about 16 B, while Debt To Assets are projected to decrease to 0.18.

	Last Reported	Projected for Next Year
Book Value Per Share	69.89	73.39
Tangible Book Value Per Share	34.48	36.21
Enterprise Value Over EBITDA	12.88	13.53
Price Book Value Ratio	3.84	4.03
Enterprise Value Multiple	12.88	13.53
Price Fair Value	3.84	4.03
Enterprise Value	29.8 B	31.3 B

Cummins has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.

Dividend Yield

0.0195

Forward Dividend Yield

0.0195

Forward Dividend Rate

7.28

Beta

0.971

Basic technical analysis of Cummins Stock

As of the 25th of November, Cummins shows the Risk Adjusted Performance of 0.1627, mean deviation of 1.09, and Downside Deviation of 0.958. Cummins technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Cummins' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Cummins insiders, such as employees or executives, is commonly permitted as long as it does not rely on Cummins' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Cummins insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Satterthwaite Tony over three months ago Disposition of 24250 shares by Satterthwaite Tony of Cummins at 109.09 subject to Rule 16b-3
		Lisa Yoder over a year ago Acquisition by Lisa Yoder of 1407 shares of Cummins subject to Rule 16b-3

Cummins' Outstanding Corporate Bonds

Cummins issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Cummins uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Cummins bonds can be classified according to their maturity, which is the date when Cummins has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	CUMMINS INC 7125 Corp Bond US231021AJ54	View
	CUMMINS INC 565 Corp Bond US231021AK28	View
	US231021AD84 Corp Bond US231021AD84	View
	CUMMINS INC Corp Bond US231021AT37	View
	US231021AU00 Corp Bond US231021AU00	View
	US231021AS53 Corp Bond US231021AS53	View

View All Cummins Corporate Bonds

Understand Cummins' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Cummins' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1627
	Market Risk Adjusted Performance	0.3018
	Mean Deviation	1.09
	Semi Deviation	0.6944
	Downside Deviation	0.958
	Coefficient Of Variation	487.07
	Standard Deviation	1.6
	Variance	2.56
	Information Ratio	0.1236
	Jensen Alpha	0.1867
	Total Risk Alpha	0.0665
	Sortino Ratio	0.2065
	Treynor Ratio	0.2918
	Maximum Drawdown	9.79
	Value At Risk	(1.68)
	Potential Upside	2.82
	Downside Variance	0.9178
	Semi Variance	0.4822
	Expected Short fall	(1.44)
	Skewness	2.43
	Kurtosis	11.49

	Risk Adjusted Performance	0.1627
	Market Risk Adjusted Performance	0.3018
	Mean Deviation	1.09
	Semi Deviation	0.6944
	Downside Deviation	0.958
	Coefficient Of Variation	487.07
	Standard Deviation	1.6
	Variance	2.56
	Information Ratio	0.1236
	Jensen Alpha	0.1867
	Total Risk Alpha	0.0665
	Sortino Ratio	0.2065
	Treynor Ratio	0.2918
	Maximum Drawdown	9.79
	Value At Risk	(1.68)
	Potential Upside	2.82
	Downside Variance	0.9178
	Semi Variance	0.4822
	Expected Short fall	(1.44)
	Skewness	2.43
	Kurtosis	11.49

Consider Cummins' intraday indicators

Cummins intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Cummins stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.021
	Daily Balance Of Power	0.7126
	Rate Of Daily Change	1.02
	Day Median Price	369.44
	Day Typical Price	370.5
	Market Facilitation Index	7.83
	Price Action Indicator	5.97
	Period Momentum Indicator	5.58
	Relative Strength Index	70.91

Cummins Corporate Filings

F4	22nd of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
8K	5th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	15th of October 2024 Other Reports	View Verify
	13th of September 2024 Other Reports	View Verify

Cummins time-series forecasting models is one of many Cummins' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Cummins' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Cummins Stock media impact

Far too much social signal, news, headlines, and media speculation about Cummins that are available to investors today. That information is available publicly through Cummins media outlets and privately through word of mouth or via Cummins internal channels. However, regardless of the origin, that massive amount of Cummins data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Cummins news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Cummins relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Cummins' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Cummins alpha.

Cummins Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Cummins can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Cummins Historical Investor Sentiment

Investor biases related to Cummins' public news can be used to forecast risks associated with an investment in Cummins. The trend in average sentiment can be used to explain how an investor holding Cummins can time the market purely based on public headlines and social activities around Cummins. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Cummins' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Cummins and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Cummins news discussions. The higher the estimate score, the more favorable the investor's outlook on Cummins.

Cummins Corporate Directors

Robert Bernhard	Independent Director	Profile
Alexis Herman	Lead Independent Director	Profile
Mark Smith	Executive Director - Investor Relations	Profile
William Miller	Independent Director	Profile

When determining whether Cummins offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cummins' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cummins Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cummins Stock: