Stock Updates

Is Cummins Inc.(NYSE: CMI), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Cummins Inc. (NYSE: CMI) has been on the stock market since its IPO date on the 12/18/1984. Cummins Inc. is in the Diversified Machinery industry and Industrial Goods sector. Average volume for Cummins Inc., is 1401.95, and so far today it has a volume of 1199200. Performance year to date since the 12/18/1984 is 52.26%.

To help you determine whether Cummins Inc. is undervalued the following values will help you decide. P/E is 17.81 and forward P/E is 16.41. PEG perhaps more useful shows that Cummins Inc. has a value for PEG of 28.72. P/S ratio is 1.21 and the P/B ratio is 3.21. The P/Cash and P/Free cash flow is 17.21 and 27.43 respectively.

At the current price Cummins Inc. is trading at, 130.49 (0.18% today), Cummins Inc. has a dividend yield of 3.14%, and this is covered by a payout ratio of 53.10%. Earnings per share (EPS) is 7.33, and this is looking to grow in the next year to -2.36% after growing -13.00% this past year. EPS growth quarter over quarter is -8.40%, and -9.70% for sales growth quarter over quarter.

The number of shares outstanding is 168.8, and the number of shares float is 168.15. The senior management bring insider ownership to 0.20%, and institutional ownership is at 85.10%. The float short is 3.63%, with the short ratio at a value of 4.35. Management has seen a return on assets of 8.30%, and also a return on investment of 16.60%.

The ability for Cummins Inc., to deal with debt, means it current ratio is 1.8, and quick ratio is 1.2. Long term debt/equity is 0.24 and total debt/equity is 0.27. In terms of margins, Cummins Inc. has a gross margin of 25.70%, with its operating margin at 10.00%, and Cummins Inc. has a profit margin of 7.00%.

The 52 week high is -0.36%, with 67.76% being its 52 week low. The 20 day simple moving average is 5.98% and the 200 day simple moving average is 20.03%.

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

Leave a Comment