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Is this Large Market Cap Stock target price reasonable for Cummins Inc. (NYSE:CMI)?

The company in question is, Cummins Inc. (NYSE:CMI) currently with a stock price of 119.29 (-0.23% today). The market cap for Cummins Inc. is 20108.72, and is in the sector Industrial Goods, and Diversified Machinery industry. The target price for Cummins Inc. is 119.83. Currently Cummins Inc. is trading with a P/E of 16.28, and a forward P/E of 15. Average volume for Cummins Inc. is 1589.04 and so far today it is 907600.

Performance in the last year for Cummins Inc. has been 7.37%. For EPS growth, Cummins Inc. has seen a growth of -13.00%, and is looking to grow in the next year to -2.35%. More long term stats show that EPS growth has been 8.30% over the last five years and could be 0.62% for the next five years. Cummins Inc. has seen sales growth quarter over quarter at -9.70%, with EPS growth quarter over quarter at -8.40%. The 20-day simple moving average is -1.82%, with the 200-day simple moving average coming to 12.17%.

Since the IPO date for Cummins Inc. on the 12/18/1984, Cummins Inc. has seen performance year to date to be 39.19%. With Cummins Inc. trading at 119.29, the dividend yield is 3.44%, and the EPS is 7.33.

So could Cummins Inc., be undervalued? Well as said before P/E is 16.28. The PEG is 26.26, P/S is 1.1 and the P/B is at 2.93. The P/cash is 15.71, with P/free cash flow at 25.04.

Cummins Inc. ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 1.2. This is with long term debt/equity at 0.24, and total debt/equity at 0.27.

In terms of margins, Cummins Inc. has a gross margin of 25.70%, an operating margin of 10.00% and a profit margin of 7.00%.Payout ratio for Cummins Inc. is 53.10%. Return on assets come to 8.30% with return on investment coming to 16.60%.

Insider ownership for Cummins Inc., is at 0.20% and institutional ownership comes to 85.20%. Outstanding shares are at 168.57. While shares float is 168.15. The float short is currently 3.48%, and short ratio is 3.68.

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

Mark Hines

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