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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 1.24
CMI's Cash to Debt is ranked higher than
71% of the 2487 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.88 vs. CMI: 1.24 )
CMI' s 10-Year Cash to Debt Range
Min: 0.03   Max: 2.4
Current: 1.24

0.03
2.4
Equity to Asset 0.49
CMI's Equity to Asset is ranked higher than
64% of the 2284 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.49 vs. CMI: 0.49 )
CMI' s 10-Year Equity to Asset Range
Min: 0.17   Max: 0.53
Current: 0.49

0.17
0.53
Interest Coverage 36.95
CMI's Interest Coverage is ranked higher than
63% of the 1422 Companies
in the Global Diversified Industrials industry.

( Industry Median: 35.82 vs. CMI: 36.95 )
CMI' s 10-Year Interest Coverage Range
Min: 1.03   Max: 70.44
Current: 36.95

1.03
70.44
F-Score: 6
Z-Score: 4.95
M-Score: -2.60
WACC vs ROIC
13.23%
24.53%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 12.29
CMI's Operating margin (%) is ranked higher than
87% of the 2484 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.17 vs. CMI: 12.29 )
CMI' s 10-Year Operating margin (%) Range
Min: -0.95   Max: 14.85
Current: 12.29

-0.95
14.85
Net-margin (%) 8.71
CMI's Net-margin (%) is ranked higher than
85% of the 2484 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.40 vs. CMI: 8.71 )
CMI' s 10-Year Net-margin (%) Range
Min: -1.81   Max: 10.24
Current: 8.71

-1.81
10.24
ROE (%) 22.16
CMI's ROE (%) is ranked higher than
93% of the 2452 Companies
in the Global Diversified Industrials industry.

( Industry Median: 8.24 vs. CMI: 22.16 )
CMI' s 10-Year ROE (%) Range
Min: -8.88   Max: 36.37
Current: 22.16

-8.88
36.37
ROA (%) 10.98
CMI's ROA (%) is ranked higher than
93% of the 2500 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.82 vs. CMI: 10.98 )
CMI' s 10-Year ROA (%) Range
Min: -2.34   Max: 16.75
Current: 10.98

-2.34
16.75
ROC (Joel Greenblatt) (%) 38.17
CMI's ROC (Joel Greenblatt) (%) is ranked higher than
91% of the 2496 Companies
in the Global Diversified Industrials industry.

( Industry Median: 12.45 vs. CMI: 38.17 )
CMI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -2.57   Max: 68.08
Current: 38.17

-2.57
68.08
Revenue Growth (3Y)(%) 4.00
CMI's Revenue Growth (3Y)(%) is ranked higher than
71% of the 2116 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.80 vs. CMI: 4.00 )
CMI' s 10-Year Revenue Growth (3Y)(%) Range
Min: -4.2   Max: 18.7
Current: 4

-4.2
18.7
EBITDA Growth (3Y)(%) 0.90
CMI's EBITDA Growth (3Y)(%) is ranked higher than
68% of the 1858 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.70 vs. CMI: 0.90 )
CMI' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -14.1   Max: 55.9
Current: 0.9

-14.1
55.9
EPS Growth (3Y)(%) -1.90
CMI's EPS Growth (3Y)(%) is ranked higher than
67% of the 1690 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.40 vs. CMI: -1.90 )
CMI' s 10-Year EPS Growth (3Y)(%) Range
Min: -59.7   Max: 118.6
Current: -1.9

-59.7
118.6
» CMI's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

CMI Guru Trades in Q2 2014

Ken Heebner 155,000 sh (New)
Jeremy Grantham 216,800 sh (+224.07%)
Ray Dalio 14,424 sh (+56.19%)
HOTCHKIS & WILEY 2,730,394 sh (+0.65%)
PRIMECAP Management 83,150 sh (unchged)
Steven Cohen 10,000 sh (unchged)
Bill Nygren Sold Out
Joel Greenblatt Sold Out
Paul Tudor Jones Sold Out
Robert Olstein Sold Out
Mario Gabelli 8,870 sh (-0.17%)
RS Investment Management 349,200 sh (-4.66%)
Pioneer Investments 1,317,666 sh (-8.76%)
David Rolfe 1,202,145 sh (-32.36%)
Caxton Associates 15,000 sh (-62.50%)
Jim Simons 140,300 sh (-69.12%)
» More
Q3 2014

CMI Guru Trades in Q3 2014

Paul Tudor Jones 12,186 sh (New)
Jim Simons 393,900 sh (+180.76%)
David Rolfe 1,361,740 sh (+13.28%)
HOTCHKIS & WILEY 3,046,316 sh (+11.57%)
Mario Gabelli 9,750 sh (+9.92%)
Ray Dalio 15,666 sh (+8.61%)
Pioneer Investments 1,090,087 sh (unchged)
Caxton Associates Sold Out
Jeremy Grantham Sold Out
Steven Cohen Sold Out
Ken Heebner Sold Out
RS Investment Management 315,700 sh (-9.59%)
PRIMECAP Management 33,150 sh (-60.13%)
» More
Q4 2014

CMI Guru Trades in Q4 2014

Jeremy Grantham 8,600 sh (New)
Joel Greenblatt 49,488 sh (New)
Louis Moore Bacon 7,500 sh (New)
Ray Dalio 42,966 sh (+174.26%)
David Rolfe 1,563,820 sh (+14.84%)
Pioneer Investments 1,141,361 sh (+4.70%)
Mario Gabelli 9,750 sh (unchged)
PRIMECAP Management Sold Out
HOTCHKIS & WILEY 2,891,614 sh (-5.08%)
RS Investment Management 255,155 sh (-19.18%)
Paul Tudor Jones 3,800 sh (-68.82%)
Jim Simons 64,167 sh (-83.71%)
» More
Q1 2015

CMI Guru Trades in Q1 2015

David Dreman 4,123 sh (New)
Louis Moore Bacon 86,000 sh (+1046.67%)
Paul Tudor Jones 10,823 sh (+184.82%)
Mario Gabelli 11,425 sh (+17.18%)
Joel Greenblatt 57,373 sh (+15.93%)
RS Investment Management 284,835 sh (+11.63%)
HOTCHKIS & WILEY 3,109,777 sh (+7.54%)
David Rolfe 1,638,237 sh (+4.76%)
Pioneer Investments 1,168,326 sh (+2.36%)
Ray Dalio Sold Out
Jim Simons Sold Out
Jeremy Grantham 7,900 sh (-8.14%)
» More
» Details

Insider Trades

Latest Guru Trades with CMI

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Guru Investment Theses on Cummins Inc

David Rolfe Comments on Cummins - Oct 22, 2013

Cummins (CMI)

Cummins contributed to performance during the quarter as the Company's profitability marched higher in the absence of any direct, global competitors. While Cummins' top-line growth is typically "lumpy", particularly due to the capital intensity of their products, margins have been maintained through pricing power and cost efficiencies. We continue to like Cummins as its long-term profitability profile is much more robust than what the market gives it credit for.

From David Rolfe's Wedgewood Partners third quarter 2013 commentary.


Check out David Rolfe latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 15.20
CMI's P/E(ttm) is ranked higher than
83% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 27.80 vs. CMI: 15.20 )
CMI' s 10-Year P/E(ttm) Range
Min: 4.44   Max: 47.81
Current: 15.2

4.44
47.81
Forward P/E 12.90
CMI's Forward P/E is ranked higher than
90% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. CMI: 12.90 )
N/A
PE(NRI) 15.30
CMI's PE(NRI) is ranked higher than
84% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 27.70 vs. CMI: 15.30 )
CMI' s 10-Year PE(NRI) Range
Min: 4.44   Max: 47.76
Current: 15.3

4.44
47.76
P/B 3.30
CMI's P/B is ranked higher than
50% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.19 vs. CMI: 3.30 )
CMI' s 10-Year P/B Range
Min: 1.06   Max: 4.85
Current: 3.3

1.06
4.85
P/S 1.30
CMI's P/S is ranked higher than
53% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.20 vs. CMI: 1.30 )
CMI' s 10-Year P/S Range
Min: 0.28   Max: 1.68
Current: 1.3

0.28
1.68
PFCF 18.70
CMI's PFCF is ranked higher than
81% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 94.20 vs. CMI: 18.70 )
CMI' s 10-Year PFCF Range
Min: 7.22   Max: 45.01
Current: 18.7

7.22
45.01
POCF 11.96
CMI's POCF is ranked higher than
78% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 19.49 vs. CMI: 11.96 )
CMI' s 10-Year POCF Range
Min: 3.7   Max: 24.38
Current: 11.96

3.7
24.38
EV-to-EBIT 10.77
CMI's EV-to-EBIT is ranked higher than
85% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 18.99 vs. CMI: 10.77 )
CMI' s 10-Year EV-to-EBIT Range
Min: 2.9   Max: 24.4
Current: 10.77

2.9
24.4
PEG 0.74
CMI's PEG is ranked higher than
95% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. CMI: 0.74 )
CMI' s 10-Year PEG Range
Min: 0.12   Max: 12.59
Current: 0.74

0.12
12.59
Shiller P/E 18.50
CMI's Shiller P/E is ranked higher than
88% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 197.80 vs. CMI: 18.50 )
CMI' s 10-Year Shiller P/E Range
Min: 6.88   Max: 64.29
Current: 18.5

6.88
64.29
Current Ratio 2.22
CMI's Current Ratio is ranked higher than
77% of the 2309 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.80 vs. CMI: 2.22 )
CMI' s 10-Year Current Ratio Range
Min: 1.3   Max: 2.57
Current: 2.22

1.3
2.57
Quick Ratio 1.49
CMI's Quick Ratio is ranked higher than
74% of the 2309 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.26 vs. CMI: 1.49 )
CMI' s 10-Year Quick Ratio Range
Min: 0.83   Max: 1.86
Current: 1.49

0.83
1.86
Days Inventory 70.06
CMI's Days Inventory is ranked higher than
79% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 101.62 vs. CMI: 70.06 )
CMI' s 10-Year Days Inventory Range
Min: 47.23   Max: 66.68
Current: 70.06

47.23
66.68
Days Sales Outstanding 60.57
CMI's Days Sales Outstanding is ranked higher than
83% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 89.55 vs. CMI: 60.57 )
CMI' s 10-Year Days Sales Outstanding Range
Min: 39.47   Max: 67.73
Current: 60.57

39.47
67.73

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.20
CMI's Dividend Yield is ranked higher than
62% of the 1853 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.69 vs. CMI: 2.20 )
CMI' s 10-Year Dividend Yield Range
Min: 0.56   Max: 3.36
Current: 2.2

0.56
3.36
Dividend Payout 0.32
CMI's Dividend Payout is ranked higher than
79% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.71 vs. CMI: 0.32 )
CMI' s 10-Year Dividend Payout Range
Min: 0.07   Max: 5.77
Current: 0.32

0.07
5.77
Dividend growth (3y) 28.50
CMI's Dividend growth (3y) is ranked higher than
94% of the 1157 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.20 vs. CMI: 28.50 )
CMI' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 37
Current: 28.5

0
37
Yield on cost (5-Year) 9.29
CMI's Yield on cost (5-Year) is ranked higher than
97% of the 1881 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.92 vs. CMI: 9.29 )
CMI' s 10-Year Yield on cost (5-Year) Range
Min: 2.37   Max: 14.19
Current: 9.29

2.37
14.19
Share Buyback Rate 1.80
CMI's Share Buyback Rate is ranked higher than
93% of the 1479 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.70 vs. CMI: 1.80 )
CMI' s 10-Year Share Buyback Rate Range
Min: 1.8   Max: -8.8
Current: 1.8

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.70
CMI's Price/Tangible Book is ranked higher than
54% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.10 vs. CMI: 3.70 )
CMI' s 10-Year Price/Tangible Book Range
Min: 1.52   Max: 5.33
Current: 3.7

1.52
5.33
Price/DCF (Projected) 1.20
CMI's Price/DCF (Projected) is ranked higher than
83% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 7.40 vs. CMI: 1.20 )
CMI' s 10-Year Price/DCF (Projected) Range
Min: 0.58   Max: 3.02
Current: 1.2

0.58
3.02
Price/Median PS Value 1.40
CMI's Price/Median PS Value is ranked higher than
57% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. CMI: 1.40 )
CMI' s 10-Year Price/Median PS Value Range
Min: 0.16   Max: 1.69
Current: 1.4

0.16
1.69
Price/Peter Lynch Fair Value 1.60
CMI's Price/Peter Lynch Fair Value is ranked higher than
93% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. CMI: 1.60 )
CMI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.29   Max: 4.12
Current: 1.6

0.29
4.12
Price/Graham Number 1.50
CMI's Price/Graham Number is ranked higher than
72% of the 2701 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.60 vs. CMI: 1.50 )
CMI' s 10-Year Price/Graham Number Range
Min: 0.61   Max: 20.7
Current: 1.5

0.61
20.7
Earnings Yield (Greenblatt) 9.30
CMI's Earnings Yield (Greenblatt) is ranked higher than
83% of the 2471 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.80 vs. CMI: 9.30 )
CMI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.1   Max: 34.2
Current: 9.3

4.1
34.2
Forward Rate of Return (Yacktman) 13.81
CMI's Forward Rate of Return (Yacktman) is ranked higher than
82% of the 1409 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.64 vs. CMI: 13.81 )
CMI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -0.1   Max: 74.9
Current: 13.81

-0.1
74.9

Business Description

Industry: Industrial Products » Diversified Industrials
Compare:UTX, MMM, ARG, AP, EMR » details
Traded in other countries:CUM.Germany,
Cummins Inc is a diesel engine manufacturer. The Company designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems and electric power generation systems. It sells its products to original equipment manufacturers, distributors and other customers. It operates in four segments: Engine, Distribution, Components and Power Generation. The Engine segment produces engines and parts for sale to customers in on-highway and various industrial markets. Its engines are used in trucks of all sizes, buses and recreational vehicles, as well as in various industrial applications, including construction, mining, agriculture, marine, oil and gas, rail and military equipment. The Distribution segment includes wholly-owned and partially-owned distributorships engaged in wholesaling engines, generator sets and service parts, as well as performing service and repair activities on its products and maintaining relationships with various OEMs throughout the world. The Components segment sells filtration products, aftertreatment systems, turbochargers and fuel systems. The Power Generation segment is an integrated provider of power systems, which sells engines, generator sets and alternators. The customers of its heavy- and medium-duty truck engines include truck manufacturers such as PACCAR Inc. (PACCAR), Daimler Trucks North America, Navistar International Corporation (Navistar), Ford Motor Company, MAN Latin America and Volvo. It sells its industrial engines to manufacturers of construction, agricultural and marine equipment, including Komatsu, Belaz, Hyundai, Hitachi and JLG. The customers of its light-duty on-highway engines are Chrysler and manufacturers of RVs. Customers of Components segment include its Engine and Distribution segments, truck manufacturers and other OEMs, many of which are also customers of its Engine segment, such as PACCAR, Daimler, Navistar, Volvo, Scania, Fiat, Komatsu, Ford and other manufacturers that use its components in their product platforms. In the markets served by its Engine segment, it competes with independent engine manufacturers as well as OEMs who manufacture engines for their own products. Its competitors in North America are Navistar, Daimler Trucks North America, Caterpillar Inc. (CAT), Volvo Powertrain, Ford Motor Company and Hino Power. Its competitors in international markets vary from country to country, with local manufacturers generally predominant in each geographic market. Other engine manufacturers in international markets include Weichai Power Co. Ltd., MAN Nutzfahrzeuge AG (MAN), Fiat Power Systems, GuangxiYuchai Group, GE Jenbacher, Tognum AG, CAT, Volvo, Yanmar Co., Ltd. and Deutz AG. Its Components segment competes with other manufacturers of aftertreatment systems, filtration, turbochargers and fuel
» More Articles for CMI

Headlines

Articles On GuruFocus.com
Cummins' Recent Momentum Will Continue in the Long Run May 18 2015 
Why Investors Can Expect a Better Performance From Cummins May 14 2015 
Cummins: Investors Should Not Rule Out More Improvements Apr 28 2015 
Can Cummins Continue Doing Well After Its Fourth-Quarter Results? Apr 17 2015 
Insiders Are Buying At Clean Energy Fuels Mar 09 2015 
Why Cummins Can Get Better This Fiscal Year Feb 24 2015 
Top 4 Undervalued stocks in Hotchkis & Wiley’s Portfolio Feb 16 2015 
CMI: Analysts’ Capitulation Deliver Another Opportunity Feb 09 2015 
8 Dividend Picks With A Predictable Growing Business Feb 07 2015 
A Few Reasons to Invest in Cummins Dec 19 2014 

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