Cummins Profit Margin vs. Shares Owned By Institutions
| CUM Stock | EUR 358.10 3.70 1.02% |
For Cummins profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cummins to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cummins utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cummins's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cummins over time as well as its relative position and ranking within its peers.
Cummins |
Cummins Shares Owned By Institutions vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cummins's current stock value. Our valuation model uses many indicators to compare Cummins value to that of its competitors to determine the firm's financial worth. Cummins is number one stock in profit margin category among its peers. It also is number one stock in shares owned by institutions category among its peers producing about 1,125 of Shares Owned By Institutions per Profit Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cummins' earnings, one of the primary drivers of an investment's value.Cummins Shares Owned By Institutions vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Cummins |
| = | 0.08 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Cummins |
| = | 86.20 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Cummins Shares Owned By Institutions Comparison
Cummins is currently under evaluation in shares owned by institutions category among its peers.
Cummins Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cummins, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cummins will eventually generate negative long term returns. The profitability progress is the general direction of Cummins' change in net profit over the period of time. It can combine multiple indicators of Cummins, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and powertrain-related component products worldwide. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana. CUMMINS INC operates under Diversified Industrials classification in Germany and is traded on Frankfurt Stock Exchange. It employs 62600 people.
Cummins Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cummins. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cummins position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cummins' important profitability drivers and their relationship over time.
Use Cummins in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cummins position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cummins will appreciate offsetting losses from the drop in the long position's value.Cummins Pair Trading
Cummins Pair Trading Analysis
The ability to find closely correlated positions to Cummins could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cummins when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cummins - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cummins to buy it.
The correlation of Cummins is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cummins moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cummins moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cummins can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Cummins position
In addition to having Cummins in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Cummins Stock
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:Check out Trending Equities. For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Cummins' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cummins at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cummins' income statement, its balance sheet, and the statement of cash flows.