ScoreWhy is Cummins, Inc. ?
1
High Management Efficiency with a high ROCE of 22.46%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.83 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 10.78%
4
Market Beating performance in long term as well as near term
- Along with generating 41.40% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Cummins, Inc. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cummins, Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Cummins, Inc.
23.69%
2.93
31.26%
S&P 500
15.76%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.19%
EBIT Growth (5y)
16.15%
EBIT to Interest (avg)
13.66
Debt to EBITDA (avg)
0.83
Net Debt to Equity (avg)
0.49
Sales to Capital Employed (avg)
1.90
Tax Ratio
23.93%
Dividend Payout Ratio
37.27%
Pledged Shares
0
Institutional Holding
89.44%
ROCE (avg)
22.46%
ROE (avg)
29.34%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
Price to Book Value
9.22
EV to EBIT
30.27
EV to EBITDA
23.58
EV to Capital Employed
7.22
EV to Sales
3.50
PEG Ratio
NA
Dividend Yield
0.94%
ROCE (Latest)
23.85%
ROE (Latest)
25.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 4,647 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 33.95 %
DIVIDEND PER SHARE(HY)
Highest at USD 5.57
INTEREST COVERAGE RATIO(Q)
Highest at 1,833.75
RAW MATERIAL COST(Y)
Fallen by 1.3% (YoY
CASH AND EQV(HY)
Highest at USD 7,106 MM
NET SALES(Q)
Highest at USD 9,457 MM
OPERATING PROFIT(Q)
Highest at USD 1,467 MM
PRE-TAX PROFIT(Q)
Highest at USD 1,278 MM
NET PROFIT(Q)
Highest at USD 920.77 MM
EPS(Q)
Highest at USD 6.73
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.57 times
INVENTORY TURNOVER RATIO(HY)
Lowest at 4.1 times
Here's what is working for Cummins, Inc.
Operating Cash Flow
Highest at USD 4,647 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 1,833.75
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at 33.95 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at USD 5.57 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 9,457 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 1,467 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 1,278 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 920.77 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 6.73
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 7,106 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 1.3% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Cummins, Inc.
Debtors Turnover Ratio
Lowest at 5.57 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Inventory Turnover Ratio
Lowest at 4.1 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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