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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 : 7/10

vs
industry
vs
history
Cash to Debt 1.41
CMI's Cash to Debt is ranked higher than
75% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.77 vs. CMI: 1.41 )
CMI' s 10-Year Cash to Debt Range
Min: 0.03   Max: 2.4
Current: 1.41

0.03
2.4
Equity to Asset 0.50
CMI's Equity to Asset is ranked higher than
63% of the 2015 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.50 vs. CMI: 0.50 )
CMI' s 10-Year Equity to Asset Range
Min: 0.17   Max: 0.53
Current: 0.5

0.17
0.53
Interest Coverage 51.24
CMI's Interest Coverage is ranked higher than
68% of the 1333 Companies
in the Global Diversified Industrials industry.

( Industry Median: 30.94 vs. CMI: 51.24 )
CMI' s 10-Year Interest Coverage Range
Min: 1.03   Max: 70.44
Current: 51.24

1.03
70.44
F-Score: 6
Z-Score: 4.87
M-Score: -2.46
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 : 9/10

vs
industry
vs
history
Operating margin (%) 12.48
CMI's Operating margin (%) is ranked higher than
88% of the 2032 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.50 vs. CMI: 12.48 )
CMI' s 10-Year Operating margin (%) Range
Min: -0.95   Max: 14.85
Current: 12.48

-0.95
14.85
Net-margin (%) 8.76
CMI's Net-margin (%) is ranked higher than
85% of the 2032 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.53 vs. CMI: 8.76 )
CMI' s 10-Year Net-margin (%) Range
Min: -1.81   Max: 10.24
Current: 8.76

-1.81
10.24
ROE (%) 21.85
CMI's ROE (%) is ranked higher than
96% of the 2017 Companies
in the Global Diversified Industrials industry.

( Industry Median: 7.89 vs. CMI: 21.85 )
CMI' s 10-Year ROE (%) Range
Min: -8.88   Max: 36.37
Current: 21.85

-8.88
36.37
ROA (%) 10.93
CMI's ROA (%) is ranked higher than
95% of the 2047 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.77 vs. CMI: 10.93 )
CMI' s 10-Year ROA (%) Range
Min: -2.34   Max: 16.75
Current: 10.93

-2.34
16.75
ROC (Joel Greenblatt) (%) 39.91
CMI's ROC (Joel Greenblatt) (%) is ranked higher than
93% of the 2046 Companies
in the Global Diversified Industrials industry.

( Industry Median: 12.49 vs. CMI: 39.91 )
CMI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -2.57   Max: 68.08
Current: 39.91

-2.57
68.08
Revenue Growth (%) 11.20
CMI's Revenue Growth (%) is ranked higher than
85% of the 1804 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.40 vs. CMI: 11.20 )
CMI' s 10-Year Revenue Growth (%) Range
Min: -4.2   Max: 18.7
Current: 11.2

-4.2
18.7
EBITDA Growth (%) 11.00
CMI's EBITDA Growth (%) is ranked higher than
80% of the 1586 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.40 vs. CMI: 11.00 )
CMI' s 10-Year EBITDA Growth (%) Range
Min: -14.1   Max: 55.9
Current: 11

-14.1
55.9
EPS Growth (%) 14.40
CMI's EPS Growth (%) is ranked higher than
80% of the 1416 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.50 vs. CMI: 14.40 )
CMI' s 10-Year EPS Growth (%) Range
Min: -59.7   Max: 118.6
Current: 14.4

-59.7
118.6
» CMI's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2013

CMI Guru Trades in Q4 2013

Joel Greenblatt 44,929 sh (New)
Steven Cohen 96,506 sh (+13.12%)
Mario Gabelli 9,345 sh (+11.98%)
David Rolfe 1,656,312 sh (+7.72%)
HOTCHKIS & WILEY 2,590,878 sh (+4.75%)
Pioneer Investments 1,464,587 sh (+3.88%)
Bill Nygren 1,380,000 sh (unchged)
PRIMECAP Management 83,150 sh (unchged)
Jeremy Grantham Sold Out
Caxton Associates Sold Out
Ray Dalio Sold Out
Jim Simons Sold Out
RS Investment Management 377,565 sh (-0.72%)
Robert Olstein 31,000 sh (-11.43%)
Chuck Royce 15,200 sh (-45.71%)
» More
Q1 2014

CMI Guru Trades in Q1 2014

Jim Simons 454,289 sh (New)
Caxton Associates 40,000 sh (New)
Jeremy Grantham 66,900 sh (New)
Paul Tudor Jones 1,749 sh (New)
Ray Dalio 9,235 sh (New)
Steven Cohen 242,670 sh (+151.46%)
David Rolfe 1,777,284 sh (+7.3%)
HOTCHKIS & WILEY 2,712,758 sh (+4.7%)
Bill Nygren 1,380,000 sh (unchged)
PRIMECAP Management 83,150 sh (unchged)
Chuck Royce Sold Out
Pioneer Investments 1,444,251 sh (-1.39%)
RS Investment Management 366,275 sh (-2.99%)
Mario Gabelli 8,885 sh (-4.92%)
Robert Olstein 21,700 sh (-30%)
Joel Greenblatt 2,273 sh (-94.94%)
» More
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)
Joel Greenblatt Sold Out
Robert Olstein Sold Out
Bill Nygren Sold Out
Paul Tudor Jones 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 (-62.5%)
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%)
Caxton Associates Sold Out
Jeremy Grantham Sold Out
Steven Cohen Sold Out
Ken Heebner Sold Out
RS Investment Management 315,700 sh (-9.59%)
Pioneer Investments 1,090,087 sh (-17.27%)
PRIMECAP Management 33,150 sh (-60.13%)
» 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%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ken Heebner 2014-09-30 Sold Out 0.63%$132.85 - $157.75 $ 140.42-3%0
HOTCHKIS & WILEY 2014-09-30 Add 11.57%0.16%$132.85 - $157.75 $ 140.42-3%3046316
PRIMECAP Management 2014-09-30 Reduce -60.13%0.01%$132.85 - $157.75 $ 140.42-3%33150
Bill Nygren 2014-06-30 Sold Out 1.6%$141.76 - $160.55 $ 140.42-7%0
Ken Heebner 2014-06-30 New Buy0.63%$141.76 - $160.55 $ 140.42-7%155000
Robert Olstein 2014-06-30 Sold Out 0.44%$141.76 - $160.55 $ 140.42-7%0
Joel Greenblatt 2014-06-30 Sold Out 0.01%$141.76 - $160.55 $ 140.42-7%0
Ray Dalio 2014-06-30 Add 56.19%0.01%$141.76 - $160.55 $ 140.42-7%14424
Robert Olstein 2014-03-31 Reduce -30%0.19%$123.7 - $146.12 $ 140.421%21700
Joel Greenblatt 2014-03-31 Reduce -94.94%0.14%$123.7 - $146.12 $ 140.421%2273
Ray Dalio 2014-03-31 New Buy0.01%$123.7 - $146.12 $ 140.421%9235
Joel Greenblatt 2013-12-31 New Buy0.15%$125.44 - $139.93 $ 140.426%44929
Ray Dalio 2013-12-31 Sold Out 0.01%$125.44 - $139.93 $ 140.426%0
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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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) 15.80
CMI's P/E(ttm) is ranked higher than
80% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 23.20 vs. CMI: 15.80 )
CMI' s 10-Year P/E(ttm) Range
Min: 4.44   Max: 47.81
Current: 15.8

4.44
47.81
P/B 3.31
CMI's P/B is ranked higher than
52% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.85 vs. CMI: 3.31 )
CMI' s 10-Year P/B Range
Min: 1.06   Max: 4.85
Current: 3.31

1.06
4.85
P/S 1.38
CMI's P/S is ranked higher than
61% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.05 vs. CMI: 1.38 )
CMI' s 10-Year P/S Range
Min: 0.28   Max: 1.68
Current: 1.38

0.28
1.68
PFCF 18.26
CMI's PFCF is ranked higher than
81% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 41.27 vs. CMI: 18.26 )
CMI' s 10-Year PFCF Range
Min: 7.22   Max: 189.54
Current: 18.26

7.22
189.54
EV-to-EBIT 10.82
CMI's EV-to-EBIT is ranked higher than
83% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 16.88 vs. CMI: 10.82 )
CMI' s 10-Year EV-to-EBIT Range
Min: 2.9   Max: 39.5
Current: 10.82

2.9
39.5
PEG 0.60
CMI's PEG is ranked higher than
94% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. CMI: 0.60 )
CMI' s 10-Year PEG Range
Min: 0.12   Max: 12.59
Current: 0.6

0.12
12.59
Shiller P/E 20.20
CMI's Shiller P/E is ranked higher than
87% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 68.79 vs. CMI: 20.20 )
CMI' s 10-Year Shiller P/E Range
Min: 6.83   Max: 66.76
Current: 20.2

6.83
66.76
Current Ratio 2.25
CMI's Current Ratio is ranked higher than
75% of the 2037 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.86 vs. CMI: 2.25 )
CMI' s 10-Year Current Ratio Range
Min: 1.3   Max: 2.57
Current: 2.25

1.3
2.57
Quick Ratio 1.54
CMI's Quick Ratio is ranked higher than
74% of the 2037 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.28 vs. CMI: 1.54 )
CMI' s 10-Year Quick Ratio Range
Min: 0.83   Max: 1.86
Current: 1.54

0.83
1.86

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.00
CMI's Dividend Yield is ranked higher than
63% of the 1549 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.61 vs. CMI: 2.00 )
CMI' s 10-Year Dividend Yield Range
Min: 0.56   Max: 3.36
Current: 2

0.56
3.36
Dividend Payout 0.30
CMI's Dividend Payout is ranked higher than
76% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.59 vs. CMI: 0.30 )
CMI' s 10-Year Dividend Payout Range
Min: 0.07   Max: 5.77
Current: 0.3

0.07
5.77
Dividend growth (3y) 37.00
CMI's Dividend growth (3y) is ranked higher than
96% of the 997 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.30 vs. CMI: 37.00 )
CMI' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 37
Current: 37

0
37
Yield on cost (5-Year) 9.24
CMI's Yield on cost (5-Year) is ranked higher than
97% of the 1578 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.90 vs. CMI: 9.24 )
CMI' s 10-Year Yield on cost (5-Year) Range
Min: 2.59   Max: 15.52
Current: 9.24

2.59
15.52
Share Buyback Rate 1.70
CMI's Share Buyback Rate is ranked higher than
91% of the 1305 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.50 vs. CMI: 1.70 )
CMI' s 10-Year Share Buyback Rate Range
Min: 2.2   Max: -8.8
Current: 1.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.70
CMI's Price/Tangible Book is ranked higher than
57% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.61 vs. CMI: 3.70 )
CMI' s 10-Year Price/Tangible Book Range
Min: 1.34   Max: 5.33
Current: 3.7

1.34
5.33
Price/DCF (Projected) 1.24
CMI's Price/DCF (Projected) is ranked higher than
81% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.06 vs. CMI: 1.24 )
CMI' s 10-Year Price/DCF (Projected) Range
Min: 0.58   Max: 3.02
Current: 1.24

0.58
3.02
Price/Median PS Value 1.50
CMI's Price/Median PS Value is ranked higher than
54% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.16 vs. CMI: 1.50 )
CMI' s 10-Year Price/Median PS Value Range
Min: 0.17   Max: 1.78
Current: 1.5

0.17
1.78
Price/Peter Lynch Fair Value 0.90
CMI's Price/Peter Lynch Fair Value is ranked higher than
94% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. CMI: 0.90 )
CMI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.29   Max: 4.12
Current: 0.9

0.29
4.12
Price/Graham Number 1.56
CMI's Price/Graham Number is ranked higher than
73% of the 2161 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.31 vs. CMI: 1.56 )
CMI' s 10-Year Price/Graham Number Range
Min: 0.61   Max: 19.04
Current: 1.56

0.61
19.04
Earnings Yield (Greenblatt) 9.20
CMI's Earnings Yield (Greenblatt) is ranked higher than
82% of the 2035 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.30 vs. CMI: 9.20 )
CMI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.5   Max: 34.2
Current: 9.2

2.5
34.2
Forward Rate of Return (Yacktman) 21.53
CMI's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 1222 Companies
in the Global Diversified Industrials industry.

( Industry Median: 7.66 vs. CMI: 21.53 )
CMI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -6.3   Max: 74.9
Current: 21.53

-6.3
74.9

Business Description

Industry: Industrial Products » Diversified Industrials
Compare:UTX, MMM, ARG, AP, EMR » details
Traded in other countries:CUM.Germany,
Cummins Inc was incorporated in 1919 in Columbus, Indiana. The Company designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products, including filtration, after treatment, 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 internationally. The Company serves its customers through a network of more than 600 company-owned and independent distributor locations and approximately 6,800 dealer locations in more than 190 countries and territories. The Company has four complementary operating segments: Emission solutions, Turbo technologies, Filtration and Fuel systems. The emission solutions business is engaged in designing, manufacturing and integrating aftertreatment technology and solutions for the commercial on-and off-highway medium-duty, heavy-duty and high-horsepower engine markets. Emission solutions business develops and produces various emission solutions, including custom engineering systems and integrated controls, oxidation catalysts, particulate filters, oxides of nitrogen (NOx) reduction systems such as selective catalytic reduction and NOx adsorbers and engineered components such as dosers and sensors. Turbo technologies business designs, manufactures and markets turbochargers for light-duty, mid-range, heavy-duty and high-horsepower diesel markets with manufacturing facilities in five countries and sales and distribution worldwide. The turbo technologies business provides critical air handling technologies for engines, including variable geometry turbochargers, to meet challenging performance requirements and worldwide emission standards. The filtration business offers over 8,000 products including air filters, fuel filters, fuel water separators, lube filters, hydraulic filters, coolant, diesel exhaust fluid, fuel additives and other filtration systems to OEMs, dealers/distributors and end users. The filtration business supports a wide customer base in a diverse range of markets including on-highway, off-highway, oil and gas, agriculture, construction, power generation, marine, industrial and light-duty trucks. The fuel systems business designs and manufactures new and replacement fuel systems for heavy-duty on-highway diesel engine applications and also remanufactures fuel systems. Customers of its Components segment generally include Engine and Distribution segments, truck manufacturers and other OEMs, many of which are also customers of Engine segment, such as PACCAR, Daimler, Volvo, Navistar, Komatsu, Ford and other manufacturers that use components in their product platforms.
» More Articles for CMI

Headlines

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C-COM Announces Issuance of Stock Options Oct 23 2014 
David Rolfe's Wedgewood Partners Q3 2014 Portfolio Commentary Oct 15 2014 
C-COM Reports Third Quarter Financial Results Oct 15 2014 

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