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Cummins Inc. (NYSE: CMI) – Is this large market cap stock undervalued?

Cummins Inc. (NYSE: CMI), is firmly in the large market cap category with market cap of 20843.9. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Cummins Inc. is 123.6 (with a change from open of 2.19%), this in conjunction with a target price of 119.83. Volume today has so far reached 1198000, with an average volume of about 1420.46. The GAP for this stock, is 0.40%.

The P/E ratio is 16.87, bringing the forward P/E to a value of 15.54. The current EPS for Cummins Inc., is 7.33, with a EPS growth for this year coming to a value of -13.00%. Performance has been interesting with performance year to date coming to 44.22%.

Looking further into the growth statistics for Cummins Inc., EPS is looking like it will grow -2.36% in the next year. Looking even further it is projected to be 0.62%. Quarter over quarter is -8.40% for EPS growth and for sales growth quarter over quarter it is -9.70%. Looking at past EPS growth statistics we see that for the past five years it has been 8.30%. Sales growth for the past five years has in fact been 7.60%.

Looking at the ownership, we see that the insider ownership is at 0.20% and institutional ownership is 85.10%. Shares outstanding is 168.64, while shares float is at a value of 168.15. Float short for Cummins Inc. is 3.48% and the short ratio is 4.12.

In terms of debt, long term debt/equity is 0.24, while the total debt/equity comes to 0.27. The ability to meet these debts, means that the current ratio is 1.8, and the quick ratio is 1.2. The most recent gross margin is 25.70% and their operating margin is 10.00%. The profit margin is 7.00%.

Cummins Inc. has seen returns on assets of 8.30%, and on investment, 16.60%. Return on equity is 17.50%. Price/Earnings to growth ratio is 27.21. Price/Sales ratio is at a value of 1.14, with Price/book ratio coming to 3.04 and Price/cash is 16.28, and finally Price/Free cash Flow is 25.96.

The simple moving averages are 1.31% and 15.04% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -2.88% and the 52 week low is 58.90%.

Cummins Inc. has a dividend yield of 3.32%, with a current price of 123.6. The ability to pay this means the payout ratio is 53.10%. This is in an industry, Diversified Machinery, with equally high dividends from other companies in this sector, which it is Industrial Goods. Cummins Inc. is based in USA.

Performance in the Diversified Machinery industry means that Cummins Inc. has seen performance for the past week of 2.22%, with performance for the month coming to -1.51%. Looking at the data for the quarter it is at a value of 13.56%, and for the half year the performance is 18.60%. Volatility for this week is 1.32% and for the month this is 1.74%.

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.

About the author

Peter Clarke

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