GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Cummins Inc (NYSE:CMI) » Definitions » Cyclically Adjusted Price-to-FCF

CMI (Cummins) Cyclically Adjusted Price-to-FCF : 25.71 (As of Jun. 02, 2025)


View and export this data going back to 1972. Start your Free Trial

What is Cummins Cyclically Adjusted Price-to-FCF?

As of today (2025-06-02), Cummins's current share price is $317.24. Cummins's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 was $12.34. Cummins's Cyclically Adjusted Price-to-FCF for today is 25.71.

The historical rank and industry rank for Cummins's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

CMI' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 13.67   Med: 22.19   Max: 31.4
Current: 26.05

During the past years, Cummins's highest Cyclically Adjusted Price-to-FCF was 31.40. The lowest was 13.67. And the median was 22.19.

CMI's Cyclically Adjusted Price-to-FCF is ranked better than
58.64% of 1042 companies
in the Industrial Products industry
Industry Median: 33.73 vs CMI: 26.05

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Cummins's adjusted free cash flow per share data for the three months ended in Mar. 2025 was $-1.193. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $12.34 for the trailing ten years ended in Mar. 2025.

Shiller PE for Stocks: The True Measure of Stock Valuation


Cummins Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Cummins's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cummins Cyclically Adjusted Price-to-FCF Chart

Cummins Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.37 20.62 21.10 18.65 28.24

Cummins Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.57 22.82 26.79 28.24 25.40

Competitive Comparison of Cummins's Cyclically Adjusted Price-to-FCF

For the Specialty Industrial Machinery subindustry, Cummins's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cummins's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Cummins's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Cummins's Cyclically Adjusted Price-to-FCF falls into.


;
;

Cummins Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Cummins's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=317.24/12.34
=25.71

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Cummins's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 is calculated as:

For example, Cummins's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2025 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=-1.193/134.9266*134.9266
=-1.193

Current CPI (Mar. 2025) = 134.9266.

Cummins Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201506 1.308 100.684 1.753
201509 2.255 100.392 3.031
201512 3.221 99.792 4.355
201603 1.064 100.470 1.429
201606 2.006 101.688 2.662
201609 2.604 101.861 3.449
201612 2.288 101.863 3.031
201703 1.613 102.862 2.116
201706 1.985 103.349 2.592
201709 3.150 104.136 4.081
201712 3.365 104.011 4.365
201803 -1.231 105.290 -1.578
201806 2.775 106.317 3.522
201809 4.450 106.507 5.637
201812 3.900 105.998 4.964
201903 1.795 107.251 2.258
201906 4.184 108.070 5.224
201909 6.092 108.329 7.588
201912 3.338 108.420 4.154
202003 1.977 108.902 2.449
202006 -0.757 108.767 -0.939
202009 7.354 109.815 9.036
202012 5.814 109.897 7.138
202103 1.625 111.754 1.962
202106 3.276 114.631 3.856
202109 2.799 115.734 3.263
202112 2.748 117.630 3.152
202203 0.419 121.301 0.466
202206 3.183 125.017 3.435
202209 1.268 125.227 1.366
202212 2.488 125.222 2.681
202303 2.121 127.348 2.247
202306 1.839 128.729 1.928
202309 8.746 129.860 9.087
202312 6.573 129.419 6.853
202403 0.753 131.776 0.771
202406 -7.912 132.554 -8.054
202409 2.759 133.029 2.798
202412 6.382 133.157 6.467
202503 -1.193 134.927 -1.193

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Cummins  (NYSE:CMI) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Cummins Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Cummins's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Cummins Business Description

Industry
Address
500 Jackson Street, Box 3005, Columbus, IN, USA, 47202-3005
Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of world. Much of Cummins' foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins' business model is unique as it competes with many of its heavy-duty truck manufacturer customers, who also make their own engines.
Executives
Mark Andrew Smith officer: VP - Operations Finance 500 JACKSON STREET, COLUMBUS IN 47201
Jennifer Rumsey officer: Chief Technical Officer 500 JACKSON STREET, COLUMBUS IN 47201
Sharon R Barner officer: VP - General Counsel 500 JACKSON STREET, COLUMBUS IN 47201
Di Leo Allen Bruno V director INTERNATIONAL BUSINESS MACHINES CORP., C/O SEC'Y'S OFFICE, ONE NEW ORCHARD ROAD, ARMONK NY 10504
Donald G Jackson officer: VP and Treasurer 500 JACKSON STREET, COLUMBUS IN 47201
Tony Satterthwaite officer: President - Distribution 1400 73RD AVENUE NE, MINNEAPOLIS MN 55432
Jeffrey T Wiltrout officer: VP - Corporate Strategy 500 JACKSON STREET, COLUMBUS IN 47201
Marvin Boakye officer: VP - Chief Human Resources Off PO BOX 99900, LOUISVILLE KY 40269
Daniel William Fisher director 2526 SPRUCE MEADOWS DRIVE, BROOMFIELD CO 80023
Sherry A Aaholm officer: Chief Information Officer 500 JACKSON STREET, COLUMBUS IN 47201
Luther E Peters officer: VP - Corporate Controller 500 JACKSON STREET, COLUMBUS IN 47201
Jonathan David Wood officer: Vice President & CTO 500 JACKSON STREET, COLUMBUS IN 47201
Georgia R Nelson director C/O TOWER AUTOMOTIVE INC, 27175 HAGGERTY ROAD, NOVI MI 48377-3626
Franklin R Changdiaz director 500 JACKSON ST., M/C 60701, COLUMBUS IN 47201
Norman Thomas Linebarger officer: President-Power Gen.