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A look at a High Market Cap Stock: Cummins Inc., CMI

Cummins Inc., CMI is in the exchange NYSE and its industry is Diversified Machinery in the sector of Industrial Goods. Based in USA, Cummins Inc., CMI  has a market cap of 21396.99. Since its IPO date on the 12/18/1984, Cummins Inc., CMI performance year to date is 47.08%. Today Cummins Inc., CMI has gained 0.45%, with a current price of 126.05.

Ownership of the company is 0.20% for insider ownership while institutional ownership is 85.10%. The management of the company have seen the company have a payout ratio of 53.10%. Return of assets are at 8.30%, with return on investment at 16.60%.

In terms of debt levels and profit levels, Cummins Inc., CMI is seeing a long-term debt/equity of 0.24. While Total debt/equity is 0.27. With a profit margin of 7.00%, this is combined with a gross margin of 25.70%, and operating margin of 10.00%. Cummins Inc. ability to meet debt levels, with a current ratio of 1.8, while the quick ratio is 1.2.

For the last year Cummins Inc., CMI has seen a EPS growth of -13.00%. A performance for the year of 7.39%. The 52-week high is -0.96%, and the 52-week low is 62.05%. The average volume for Cummins Inc., CMI is 939600.

With a target price of 119.17, can Cummins Inc., CMI reach this target? Looking at the value indicators of Cummins Inc., CMI. Cummins Inc. has a P/E of 17.2 and a forward P/E of 15.84. Perhaps the more useful indicator than P/E, is PEG which has a value of 27.75. Cummins Inc. also has a P/S and a P/B of 1.18 and 3.1 respectively. For P/cash, Cummins Inc. has a value of 16.72, while it is 26.65 for P/free cash flow.

At the current price of 126.05, Cummins Inc. has a dividend yield of 3.25%. We see a return on equity of 17.50%.

Looking more long-term Cummins Inc., is projected to get an EPS growth for the next five years of 0.62%. In the short-term an EPS growth of -2.16% in the next year is forecasted. This is after a EPS growth of -13.00% for this year and for the last five years a 8.30% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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