Cummins Valuation
| CMI Stock | USD 361.05 0.58 0.16% |
At this time, the firm appears to be fairly valued. Cummins shows a prevailing Real Value of $363.09 per share. The current price of the firm is $361.05. Our model approximates the value of Cummins from analyzing the firm fundamentals such as Return On Equity of 0.38, profit margin of 0.12 %, and Current Valuation of 54.89 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Cummins' valuation include:
Price Book 4.825 | Enterprise Value | Enterprise Value Ebitda 8.6608 | Price Sales 1.4556 | Forward PE 16.1551 |
Fairly Valued
Today
Please note that Cummins' price fluctuation is very steady at this time. Calculation of the real value of Cummins is based on 3 months time horizon. Increasing Cummins' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Cummins is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cummins Stock. However, Cummins' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 361.05 | Real 363.09 | Target 380.48 | Hype 361.05 | Naive 371.4 |
The intrinsic value of Cummins' stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Cummins' stock price.
Estimating the potential upside or downside of Cummins helps investors to forecast how Cummins stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Cummins more accurately as focusing exclusively on Cummins' fundamentals will not take into account other important factors: When choosing an evaluation method for Cummins, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.
Cummins Cash |
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Cummins Valuation Trend
Cummins' real value analysis enables investors to forecast the earnings more efficiently. Using both Cummins' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing decisions.
Cummins Revenue by Product
Cummins Total Value Analysis
Cummins is currently expected to have company total value of 54.89 B with market capitalization of 49.64 B, debt of 7.6 B, and cash on hands of 2.1 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Cummins fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
54.89 B | 49.64 B | 7.6 B | 2.1 B |
Cummins Investor Information
About 87.0% of the company shares are held by institutions such as insurance companies. The book value of Cummins was currently reported as 74.75. The company has Price/Earnings To Growth (PEG) ratio of 0.7. Cummins recorded earning per share (EPS) of 28.38. The entity last dividend was issued on the 21st of February 2025. The firm had 2:1 split on the 3rd of January 2008. Based on the key indicators related to Cummins' liquidity, profitability, solvency, and operating efficiency, Cummins is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.12 | 0.11 |
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| Total Cash From Operating Activities | 1.3 B | 1.5 B |
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| Operating Income | 3.9 B | 3.8 B |
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Cummins Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cummins has an asset utilization ratio of 108.12 percent. This signifies that the Company is making $1.08 for each dollar of assets. An increasing asset utilization means that Cummins is more efficient with each dollar of assets it utilizes for everyday operations.Cummins Ownership Allocation
Cummins holds a total of 137.48 Million outstanding shares. The majority of Cummins outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cummins to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cummins. Please pay attention to any change in the institutional holdings of Cummins as this could imply that something significant has changed or is about to change at the company. Please note that on December 9, 2024, Representative Jared Moskowitz of US Congress acquired under $15k worth of Cummins's common stock.Cummins Profitability Analysis
The company reported the last year's revenue of 34.1 B. Total Income to common stockholders was 4.07 B with profit before taxes, overhead, and interest of 8.55 B.Cummins Past Distributions to stockholders
About Cummins Valuation
An absolute valuation paradigm, as applied to Cummins Stock, attempts to find the value of Cummins based on its fundamental and basic technical indicators. By analyzing Cummins's financials, quarterly and monthly indicators, and their related drivers, such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Cummins's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cummins. We calculate exposure to Cummins's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Cummins's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 8.4 B | 8.9 B | |
| Pretax Profit Margin | 0.14 | 0.15 | |
| Operating Profit Margin | 0.11 | 0.12 | |
| Net Profit Margin | 0.12 | 0.12 | |
| Gross Profit Margin | 0.25 | 0.26 |
A single share of Cummins represents a small ownership stake in the entity. As a stockholder of Cummins, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Cummins Dividends Analysis For Valuation
As of now, Cummins' Dividends Paid is increasing as compared to previous years. The Cummins' current Dividend Yield is estimated to increase to 0.03, while Dividend Payout Ratio is projected to decrease to 0.14. . As of now, Cummins' Retained Earnings are increasing as compared to previous years. The Cummins' current Earnings Yield is estimated to increase to 0.09, while Retained Earnings Total Equity is projected to decrease to under 11.8 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 969 M | 1 B | |
| Dividend Yield | 0.02 | 0.03 | |
| Dividend Payout Ratio | 0.25 | 0.14 | |
| Dividend Paid And Capex Coverage Ratio | 0.68 | 1.18 |
There are various types of dividends Cummins can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Cummins shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Cummins directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Cummins pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Cummins by the value of the dividends paid out.
Cummins Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 139.1 M | |
| Quarterly Earnings Growth Y O Y | 0.277 | |
| Forward Price Earnings | 16.1551 |
Cummins Current Valuation Indicators
Valuation refers to the process of determining the present value of Cummins and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Cummins we look at many different elements of the entity such as Cummins's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Cummins, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Cummins' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Cummins' worth.Complementary Tools for Cummins Stock analysis
When running Cummins' price analysis, check to measure Cummins' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cummins is operating at the current time. Most of Cummins' value examination focuses on studying past and present price action to predict the probability of Cummins' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cummins' price. Additionally, you may evaluate how the addition of Cummins to your portfolios can decrease your overall portfolio volatility.
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