Switch to:

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
74% of the 1973 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.79 vs. CMI: 1.41 )
CMI' s 10-Year Cash to Debt Range
Min: 0.03   Max: 2.57
Current: 1.41

0.03
2.57
Equity to Asset 0.50
CMI's Equity to Asset is ranked higher than
63% of the 1968 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.51 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
69% of the 1270 Companies
in the Global Diversified Industrials industry.

( Industry Median: 29.41 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: 4.74
M-Score: -2.39
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 (%) 14.39
CMI's Operating margin (%) is ranked higher than
90% of the 1981 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.53 vs. CMI: 14.39 )
CMI' s 10-Year Operating margin (%) Range
Min: -0.95   Max: 14.85
Current: 14.39

-0.95
14.85
Net-margin (%) 8.68
CMI's Net-margin (%) is ranked higher than
85% of the 1981 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.69 vs. CMI: 8.68 )
CMI' s 10-Year Net-margin (%) Range
Min: -1.81   Max: 10.24
Current: 8.68

-1.81
10.24
ROE (%) 21.55
CMI's ROE (%) is ranked higher than
95% of the 1968 Companies
in the Global Diversified Industrials industry.

( Industry Median: 7.63 vs. CMI: 21.55 )
CMI' s 10-Year ROE (%) Range
Min: -8.88   Max: 36.37
Current: 21.55

-8.88
36.37
ROA (%) 10.85
CMI's ROA (%) is ranked higher than
95% of the 1986 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.75 vs. CMI: 10.85 )
CMI' s 10-Year ROA (%) Range
Min: -2.34   Max: 16.75
Current: 10.85

-2.34
16.75
ROC (Joel Greenblatt) (%) 45.88
CMI's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 1985 Companies
in the Global Diversified Industrials industry.

( Industry Median: 12.35 vs. CMI: 45.88 )
CMI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -2.57   Max: 68.93
Current: 45.88

-2.57
68.93
Revenue Growth (%) 11.20
CMI's Revenue Growth (%) is ranked higher than
85% of the 1748 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.00 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 1540 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.60 vs. CMI: 11.00 )
CMI' s 10-Year EBITDA Growth (%) Range
Min: -13.7   Max: 55.9
Current: 11

-13.7
55.9
EPS Growth (%) 14.40
CMI's EPS Growth (%) is ranked higher than
79% of the 1385 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.50 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

Q3 2013

CMI Guru Trades in Q3 2013

Caxton Associates 36,412 sh (New)
Ray Dalio 11,080 sh (New)
Mario Gabelli 8,345 sh (+78.69%)
Steven Cohen 85,312 sh (+20.06%)
Jeremy Grantham 166,400 sh (+7.98%)
Pioneer Investments 1,409,942 sh (+7.52%)
David Rolfe 1,537,662 sh (+6.73%)
Bill Nygren 1,380,000 sh (unchged)
PRIMECAP Management 83,150 sh (unchged)
Chris Davis Sold Out
Joel Greenblatt Sold Out
RS Investment Management 380,311 sh (-1.77%)
HOTCHKIS & WILEY 2,473,451 sh (-4.82%)
Chuck Royce 28,000 sh (-33.88%)
Robert Olstein 35,000 sh (-40.68%)
Jim Simons 96,600 sh (-63.57%)
» More
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%)
PRIMECAP Management 83,150 sh (unchged)
Bill Nygren 1,380,000 sh (unchged)
Jim Simons Sold Out
Caxton Associates Sold Out
Jeremy Grantham Sold Out
Ray Dalio 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

Jeremy Grantham 66,900 sh (New)
Paul Tudor Jones 1,749 sh (New)
Caxton Associates 40,000 sh (New)
Ray Dalio 9,235 sh (New)
Jim Simons 454,289 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)
Paul Tudor Jones Sold Out
Bill Nygren Sold Out
Joel Greenblatt 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 (-62.5%)
Jim Simons 140,300 sh (-69.12%)
» 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
Bill Nygren 2014-06-30 Sold Out 1.6%$141.76 - $160.55 $ 130.53-14%0
Ken Heebner 2014-06-30 New Buy0.63%$141.76 - $160.55 $ 130.53-14%155000
Robert Olstein 2014-06-30 Sold Out 0.44%$141.76 - $160.55 $ 130.53-14%0
Joel Greenblatt 2014-06-30 Sold Out 0.01%$141.76 - $160.55 $ 130.53-14%0
Ray Dalio 2014-06-30 Add 56.19%0.01%$141.76 - $160.55 $ 130.53-14%14424
Robert Olstein 2014-03-31 Reduce -30%0.19%$123.7 - $146.12 $ 130.53-6%21700
Joel Greenblatt 2014-03-31 Reduce -94.94%0.14%$123.7 - $146.12 $ 130.53-6%2273
Ray Dalio 2014-03-31 New Buy0.01%$123.7 - $146.12 $ 130.53-6%9235
Joel Greenblatt 2013-12-31 New Buy0.15%$125.44 - $139.93 $ 130.53-2%44929
Ray Dalio 2013-12-31 Sold Out 0.01%$125.44 - $139.93 $ 130.53-2%0
Robert Olstein 2013-09-30 Reduce -40.68%0.41%$108.9 - $135.25 $ 130.536%35000
Joel Greenblatt 2013-09-30 Sold Out 0.03%$108.9 - $135.25 $ 130.536%0
Chris Davis 2013-09-30 Sold Out 0.02%$108.9 - $135.25 $ 130.536%0
Ray Dalio 2013-09-30 New Buy0.01%$108.9 - $135.25 $ 130.536%11080
Mario Gabelli 2013-09-30 Add 78.69%$108.9 - $135.25 $ 130.536%8345
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

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

Top Ranked Articles about Cummins Inc

David Rolfe Comments on Cummins
Cummins (CMI) Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 15.40
CMI's P/E(ttm) is ranked higher than
80% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 22.10 vs. CMI: 15.40 )
CMI' s 10-Year P/E(ttm) Range
Min: 4.44   Max: 47.81
Current: 15.4

4.44
47.81
P/B 3.08
CMI's P/B is ranked higher than
50% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.70 vs. CMI: 3.08 )
CMI' s 10-Year P/B Range
Min: 1.06   Max: 4.85
Current: 3.08

1.06
4.85
P/S 1.34
CMI's P/S is ranked higher than
60% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.97 vs. CMI: 1.34 )
CMI' s 10-Year P/S Range
Min: 0.28   Max: 1.68
Current: 1.34

0.28
1.68
PFCF 21.61
CMI's PFCF is ranked higher than
82% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. CMI: 21.61 )
CMI' s 10-Year PFCF Range
Min: 7.22   Max: 189.54
Current: 21.61

7.22
189.54
EV-to-EBIT 9.10
CMI's EV-to-EBIT is ranked higher than
87% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 15.80 vs. CMI: 9.10 )
CMI' s 10-Year EV-to-EBIT Range
Min: 2.9   Max: 39.5
Current: 9.1

2.9
39.5
PEG 0.59
CMI's PEG is ranked higher than
94% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. CMI: 0.59 )
CMI' s 10-Year PEG Range
Min: 0.12   Max: 12.76
Current: 0.59

0.12
12.76
Shiller P/E 18.98
CMI's Shiller P/E is ranked higher than
88% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 110.46 vs. CMI: 18.98 )
CMI' s 10-Year Shiller P/E Range
Min: 6.88   Max: 64.29
Current: 18.98

6.88
64.29
Current Ratio 2.38
CMI's Current Ratio is ranked higher than
78% of the 1975 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.82 vs. CMI: 2.38 )
CMI' s 10-Year Current Ratio Range
Min: 1.3   Max: 2.57
Current: 2.38

1.3
2.57
Quick Ratio 1.66
CMI's Quick Ratio is ranked higher than
76% of the 1975 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.28 vs. CMI: 1.66 )
CMI' s 10-Year Quick Ratio Range
Min: 0.83   Max: 1.86
Current: 1.66

0.83
1.86

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.03
CMI's Dividend Yield is ranked higher than
61% of the 1536 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.66 vs. CMI: 2.03 )
CMI' s 10-Year Dividend Yield Range
Min: 0.56   Max: 3.36
Current: 2.03

0.56
3.36
Dividend Payout 0.29
CMI's Dividend Payout is ranked higher than
76% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.58 vs. CMI: 0.29 )
CMI' s 10-Year Dividend Payout Range
Min: 0.07   Max: 5.77
Current: 0.29

0.07
5.77
Dividend growth (3y) 37.00
CMI's Dividend growth (3y) is ranked higher than
96% of the 1014 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.70 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
96% of the 1567 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.92 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
90% of the 1277 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.40 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 3.44
CMI's Price/Tangible Book is ranked higher than
56% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.27 vs. CMI: 3.44 )
CMI' s 10-Year Price/Tangible Book Range
Min: 1.34   Max: 5.33
Current: 3.44

1.34
5.33
Price/DCF (Projected) 1.20
CMI's Price/DCF (Projected) is ranked higher than
81% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.29 vs. CMI: 1.20 )
CMI' s 10-Year Price/DCF (Projected) Range
Min: 0.58   Max: 3.01
Current: 1.2

0.58
3.01
Price/Median PS Value 1.46
CMI's Price/Median PS Value is ranked higher than
51% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.09 vs. CMI: 1.46 )
CMI' s 10-Year Price/Median PS Value Range
Min: 0.17   Max: 1.8
Current: 1.46

0.17
1.8
Price/Peter Lynch Fair Value 0.63
CMI's Price/Peter Lynch Fair Value is ranked higher than
95% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. CMI: 0.63 )
CMI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.29   Max: 4.12
Current: 0.63

0.29
4.12
Price/Graham Number 1.49
CMI's Price/Graham Number is ranked higher than
72% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.07 vs. CMI: 1.49 )
CMI' s 10-Year Price/Graham Number Range
Min: 0.61   Max: 19.04
Current: 1.49

0.61
19.04
Earnings Yield (Greenblatt) 11.00
CMI's Earnings Yield (Greenblatt) is ranked higher than
83% of the 1854 Companies
in the Global Diversified Industrials industry.

( Industry Median: 7.30 vs. CMI: 11.00 )
CMI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.5   Max: 34.2
Current: 11

2.5
34.2
Forward Rate of Return (Yacktman) 27.32
CMI's Forward Rate of Return (Yacktman) is ranked higher than
90% of the 1554 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.35 vs. CMI: 27.32 )
CMI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -6.5   Max: 74.4
Current: 27.32

-6.5
74.4

Business Description

Industry: Industrial Products » Diversified Industrials
Compare:UTX, MMM, ARG, AP, EMR » details
Traded in other countries:CUM.Germany
Cummins Inc was founded in 1919 in Columbus, Indiana. The Company is a global power which designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems and electric power generation systems. Cummins sell its products to Original Equipment Manufacturers, distributors and other customers worldwide. The Company serves its customers through a network of more than 600 company-owned and independent distributor locations and approximately 6,500 dealer locations in more than 190 countries and territories. The Company has four complementary operating segments: Engine, Components, Power Generation and Distribution. These segments share technology, customers, strategic partners, brand recognition and its distribution network to gain a competitive advantage in their respective markets. In each of the Company operating segments, it competes worldwide with a number of other manufacturers and distributors that produce and sell similar products. The Company's Engine segment manufactures and markets a range of diesel and natural gas- powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy- and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail and governmental equipment markets. It offers a variety of engine products including: Engines with a displacement range of 2.8 to 91 liters and horsepower ranging from 48 to 3,500; New parts and service, as well as remanufactured parts and engines, through its extensive distribution network and The newly developed light-duty diesel engine, which will be sold through the light construction vehicle, pick-up, bus and certain medium-duty truck markets. Its Components segment supplies products which complement its Engine segment, including filtration products, turbochargers, aftertreatment systems and fuel systems for commercial diesel applications. It manufactures filtration systems for on- and off-highway heavy-duty and mid-range equipment, and it is a supplier of filtration products for industrial and passenger car applications. In addition, it develops aftertreatment systems and turbochargers to help its customers meet increasingly stringent emission standards and fuel systems which to date have primarily supplied its Engine segment and its joint venture partner Scania. Its Power Generation segment designs and manufactures most of the components that make up power generation systems, including engines, controls, alternators, transfer switches and switchgear. This segment is a global provider of power generation systems, components and services for a diversified customer base. The Company's main competitors in these markets include Robert Bosch GmbH, Donaldson Company, Inc., Clarcor Inc., Mann
» More Articles for CMI

Headlines

Articles On GuruFocus.com
David Rolfe's Wedgewood Partners Q3 2014 Portfolio Commentary Oct 15 2014 
C-COM Reports Third Quarter Financial Results Oct 15 2014 
Cummins: On Track to Deliver More Upside for Investors Sep 27 2014 
Will This Engine Producer Deliver Better Performance in the Future? Aug 31 2014 
Looking Beyond Cummins' Latest Quarterly Report Aug 28 2014 
These Companies Are on Track to Profit From Industrial Growth Aug 12 2014 
Cummins Inc.: Not Particularly Expensive Jul 21 2014 
4 Stocks Compounding Your Returns With Increased Dividends Jul 14 2014 
Cummins Is A Classic Long-Term Value Creator Jul 09 2014 
David Rolfe Comments on Cummins Oct 22 2013 

More From Other Websites
Cummins Inc. Declares Quarterly Common Stock Dividend Oct 14 2014
Cummins Inc. Declares Quarterly Common Stock Dividend Oct 14 2014
[video] Street Talk: AMAT, CMI, CCOI, SIMO & RUSHA Oct 08 2014
Why Cummins (CMI) Stock Is Gaining Today Oct 08 2014
Coverage initiated on Cummins by Stifel Oct 08 2014
Today's Market Thorns, Roses, and All Time Highs... Oct 07 2014
Market concerns colliding: Pisani Oct 07 2014
[video] Market concerns colliding: Pisani Oct 07 2014
Stocks Hold Near Session Lows; GoPro Fades From High Oct 07 2014
Cummins Westport Appoints Rob Neitzke as President Effective January 2015 Oct 06 2014
Cummins Sees Growth on Acquisitions and Share Buybacks Oct 02 2014
Markets now: Traders are nervous Oct 01 2014
[video] Markets now: Traders are nervous Oct 01 2014
Leading UK Retailer Tesco Saves Space and Boosts Revenue with Compact Cummins Allison Money Machines Oct 01 2014
MOVES-Tilney Bestinvest hires David Cummins from European Wealth Sep 17 2014
Cummins Selects Deborah Berke Partners to Design its Distribution Business Headquarters in... Sep 16 2014
At least 150 companies prep for carbon prices Sep 15 2014
3 Stocks Dragging The Industrial Goods Sector Downward Sep 02 2014
7 things I miss about Wall Street: Ex-trader Aug 22 2014
Good Time to Buy Micron Technology, Cummins? Aug 21 2014

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK