April 11, 2025 a 04:00 pm
CMI: Fundamental Ratio Analysis - Cummins Inc.
Cummins Inc. showcases a robust performance in the industrial machinery sector, primarily through its innovative solutions in diesel, natural gas, and hybrid powertrains. The company is renowned for its strong market presence and diverse operational segments, ensuring steady growth and revenue streams. Investors may find Cummins an attractive prospect given its stable fundamentals and consistent financial metrics.
Fundamental Rating
The fundamental rating indicates a strong position of Cummins Inc., with high scores across various financial metrics.
| Category | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 4 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 2 | |
| Price to Earnings | 3 | |
| Price to Book | 1 |
Historical Rating
The historical rating reflects the consistent performance over time, demonstrating Cummins Inc.'s stability in the market.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-04-10 | 4 | 4 | 5 | 5 | 2 | 3 | 1 |
| Previous | 0 | 4 | 5 | 5 | 2 | 3 | 1 |
Analyst Price Targets
The analyst price targets suggest a stable outlook for Cummins Inc., with a consensus indicating moderate growth potential.
| High | Low | Median | Consensus |
|---|---|---|---|
| $408 | $372 | $390 | $390 |
Analyst Sentiment
Analyst sentiment highlights a balanced approach with most recommendations tending towards 'Hold'.
| Recommendation | Count | Visualization |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 19 | |
| Hold | 23 | |
| Sell | 2 | |
| Strong Sell | 0 |
Conclusion
Cummins Inc. has proven to be a resilient player in the industrial machinery industry, with strong scores in return on equity and assets backing its competitive edge. While the debt to equity ratio signals caution, the price to earnings multiple keeps it relatively attractive. Analyst consensus of 'Hold' reflects a balanced view, indicating stable performance with room for growth. Investors should weigh the growth potential against the industry risks and macroeconomic factors influencing market dynamics.