Cummins's Enterprise Value for the quarter that ended in Jun. 2022 was $30,065 Mil.
Cummins's EBIT for the trailing twelve months (TTM) ended in Jun. 2022 was $2,727 Mil. Cummins's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2022 was 9.07%.
The historical rank and industry rank for Cummins's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
CMI'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 5.77 Med: 9.47 Max: 17
Current: 7.84
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Cummins was 17.00%. The lowest was 5.77%. And the median was 9.47%.
CMI's Earnings Yield (Joel Greenblatt) % is ranked better than 67.97% of 2769
companies
in the Industrial Products industry
Industry Median: 4.34
vs CMI: 7.84
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Cummins's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2022 was 12.16%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Cummins Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Cummins's Earnings Yield (Joel Greenblatt) % 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 Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Earnings Yield (Joel Greenblatt) %
7.99
12.48
10.04
6.93
8.56
Cummins Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Earnings Yield (Joel Greenblatt) %
8.00
8.67
8.56
8.36
9.07
Competitive Comparison
For the Specialty Industrial Machinery subindustry, Cummins's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % Distribution
For the Industrial Products industry and Industrials sector, Cummins's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Cummins's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Cumminss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2021 is calculated as
Cummins's EBIT for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,727 Mil.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Cummins Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Cummins's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway equipment, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of diesel emissions, Cummins has maintained its leadership position in the industry.
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