NYSE
CMI
Last Price
US $713.21
KEY FIGURES
MKT CAP
$94.6B
EPS
TTM
$19.33
PEG
TTM
N/M
P/E
TTM
35.43x
P/S
TTM
2.81x
YIELD
1.17%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
22.02%
Return on equity
ROIC: 11.07%
Valuation History
35.4X
Price to Earnings
EV/EBITDA: 19.7X
Cash flow
Profit margin
11.19%
(FY vs FY)
EBITDA Y/Y
11.65%
(FY vs FY)
Cash flow Y/Y
2.13%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $713.21
-74.30%
Default assumptions
EBITDA Multiple
Fair Value
Market $713.21
-67.09%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Cummins Inc. cash flow to debt ratio of 44.63% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Cummins Inc.'s free cash flow has increased 755.20% from $279.00M last year to $2.39G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Cummins Inc.'s debt to equity ratio is 0.67, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Cummins Inc.'s debt has decreased relative to shareholder equity from 0.74 last year to 0.67 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Cummins Inc. has a net debt to EBITDA ratio of 0.98x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Cummins Inc.'s interest coverage ratio of 11.62 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Cummins Inc.'s profit margin has decreased (-31.84%) in the last year from 11.57% to 7.89%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Cummins Inc.'s short-term assets of $16.93G exceed its short-term liabilities of $9.61G
Increasing performance - ROA.
Cummins Inc.'s return on assets of 7.76% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Cummins Inc.'s return on equity of 22.02%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Cummins Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Cummins Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Cummins Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Cummins Inc. has a free cash flow yield of 2.52%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Cummins Inc.'s yearly earnings has decreased -27.95% since last year from $3.95G to $2.84G, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Cummins Inc.'s yearly revenue has decreased -1.27% since last year from $34.10G to $33.67G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 11.07% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Cummins Inc.'s 3-year revenue CAGR of 6.25% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Cummins Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Cummins Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Cummins Inc. is overvalued relative to its fair value price of 183.30 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Cummins Inc. has an earnings yield of 2.82%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Cummins Inc. is overvalued relative to its fair value price of 234.70 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Cummins Inc. has an EV/EBITDA ratio of 19.69x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Cummins Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Overvalued - P/B ratio.
Cummins Inc. has a price-to-book ratio of 7.68x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Cummins Inc. has a price-to-sales ratio of 2.79x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue