CMI (Cummins Inc.): Time to Pay Attention?

After finishing at $230.49 in the prior trading day, Cummins Inc. (NYSE: CMI) closed at $231.84, up 0.59%. In other words, the price has increased by $+1.35 from its previous closing price. On the day, 1355847 shares were traded. CMI stock price reached its highest trading level at $232.74 during the session, while it also had its lowest trading level at $226.66.

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Our goal is to gain a better understanding of CMI by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 13.20 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 177.82. For the most recent quarter (mrq), Quick Ratio is recorded 0.80 and its Current Ratio is at 1.30. In the meantime, Its Debt-to-Equity ratio is 0.88 whereas as Long-Term Debt/Eq ratio is at 0.50.

Upgrades & Downgrades

On July 20, 2022, Bernstein Downgraded its rating to Mkt Perform which previously was Outperform and also lowered its target price recommendation from $238 to $190.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Feb 22 when Fier Walter J sold 3,307 shares for $252.99 per share. The transaction valued at 836,652 led to the insider holds 8,090 shares of the business.

Barner Sharon R sold 5,929 shares of CMI for $1,524,553 on Feb 17. The VP – Chief Administrative Off. now owns 16,144 shares after completing the transaction at $257.13 per share. On Feb 15, another insider, Barner Sharon R, who serves as the VP – Chief Administrative Off. of the company, sold 5,540 shares for $252.34 each. As a result, the insider received 1,397,976 and left with 16,144 shares of the company.

Valuation Measures:

As of this moment, Cummins’s Price-to-Earnings (P/E) ratio for their current fiscal year is 15.34, and their Forward P/E ratio for the next fiscal year is 12.06. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.61. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.21 while its Price-to-Book (P/B) ratio in mrq is 3.66.

Stock Price History:

Over the past 52 weeks, CMI has reached a high of $261.91, while it has fallen to a 52-week low of $184.27. The 50-Day Moving Average of the stock is 247.49, while the 200-Day Moving Average is calculated to be 228.03.

Shares Statistics:

The stock has traded on average 943.46K shares per day over the past 3-months and 1.3M shares per day over the last 10 days, according to various share statistics. A total of 141.50M shares are outstanding, with a floating share count of 140.44M. Insiders hold about 0.20% of the company’s shares, while institutions hold 85.40% stake in the company. Shares short for CMI as of Jan 30, 2023 were 2.75M with a Short Ratio of 2.40M, compared to 3.53M on Dec 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.95% and a Short% of Float of 1.95%.

Dividends & Splits

In the trailing 12 months, CMI’s forward annual dividend rate was 5.28, compared to 6.28 this year. Against a Trailing Annual Dividend Yield of 2.29%, it implies a Forward Annual Dividend Yield of 2.55%. The stock’s 5-year Average Dividend Yield is 2.72. The current Payout Ratio is 39.70% for CMI, which recently paid a dividend on Mar 08, 2023 with an ex-dividend date of Nov 16, 2022. Stock splits for the company last occurred on Jan 02, 2008 when the company split stock in a 2:1 ratio.

Earnings Estimates

Its stock is currently analyzed by 15 different market analysts. On average, analysts expect EPS of $4.71 for the current quarter, with a high estimate of $5.4 and a low estimate of $4.26, while EPS last year was $2.92. The consensus estimate for the next quarter is $5.07, with high estimates of $5.46 and low estimates of $4.59.

Analysts are recommending an EPS of between $20.5 and $17.57 for the fiscal current year, implying an average EPS of $19.14. EPS for the following year is $19.22, with 20 analysts recommending between $21.67 and $16.6.

Revenue Estimates

12 analysts predict $8.08B in revenue for the current quarter. It ranges from a high estimate of $8.56B to a low estimate of $7.64B. As of the current estimate, Cummins Inc.’s year-ago sales were $6.38B, an estimated increase of 26.60% from the year-ago figure. For the next quarter, 12 analysts are estimating revenue of $8.18B, an increase of 24.30% less than the figure of $26.60% in the same quarter last year. There is a high estimate of $8.63B for the next quarter, whereas the lowest estimate is $7.84B.

A total of 24 analysts have provided revenue estimates for CMI’s current fiscal year. The highest revenue estimate was $32.6B, while the lowest revenue estimate was $26.82B, resulting in an average revenue estimate of $31.29B. In the same quarter a year ago, actual revenue was $28.07B, up 11.50% from the average estimate. Based on 21 analysts’ estimates, the company’s revenue will be $31.53B in the next fiscal year. The high estimate is $33.57B and the low estimate is $29.53B. The average revenue growth estimate for next year is up 0.80% from the average revenue estimate for this year.