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 hold?
- 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.
65.41%
2.93
31.26%
S&P 500
14.9%
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
88.57%
ROCE (avg)
22.46%
ROE (avg)
29.34%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
38
Industry P/E
Price to Book Value
9.60
EV to EBIT
31.49
EV to EBITDA
24.52
EV to Capital Employed
7.51
EV to Sales
3.64
PEG Ratio
NA
Dividend Yield
0.91%
ROCE (Latest)
23.85%
ROE (Latest)
25.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 5.77
DEBT-EQUITY RATIO
(HY)
Lowest at 36.48 %
-4What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.77 times
OPERATING PROFIT(Q)
Lowest at USD 1,095 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 12.83 %
Here's what is working for Cummins, Inc.
Dividend per share
Highest at USD 5.77 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Debt-Equity Ratio
Lowest at 36.48 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at USD 280 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Cummins, Inc.
Debtors Turnover Ratio
Lowest at 5.77 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
Operating Profit
Lowest at USD 1,095 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 12.83 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
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