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Cummins Inc (CMI)

Upturn stock ratingUpturn stock rating
$340.22
Last Close (24-hour delay)
Profit since last BUY2.8%
upturn advisory
Consider higher Upturn Star rating
BUY since 41 days
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Upturn Advisory Summary

07/14/2025: CMI (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

rating

24 Analysts rated it

Well-followed company, solid analyst reports, reliable data for confident investing.

1 Year Target Price $353.21

1 Year Target Price $353.21

Analysts Price Target For last 52 week
$353.21 Target price
52w Low $258.55
Current$340.22
52w High $383.88

Analysis of Past Performance

Type Stock
Historic Profit 37.46%
Avg. Invested days 60
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 5.0
Stock Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 07/14/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 46.67B USD
Price to earnings Ratio 16.69
1Y Target Price 353.21
Price to earnings Ratio 16.69
1Y Target Price 353.21
Volume (30-day avg) 24
Beta 1.03
52 Weeks Range 258.55 - 383.88
Updated Date 07/14/2025
52 Weeks Range 258.55 - 383.88
Updated Date 07/14/2025
Dividends yield (FY) 2.22%
Basic EPS (TTM) 20.3

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 8.2%
Operating Margin (TTM) 12.48%

Management Effectiveness

Return on Assets (TTM) 7.73%
Return on Equity (TTM) 26.19%

Valuation

Trailing PE 16.69
Forward PE 17.21
Enterprise Value 52551114201
Price to Sales(TTM) 1.38
Enterprise Value 52551114201
Price to Sales(TTM) 1.38
Enterprise Value to Revenue 1.55
Enterprise Value to EBITDA 10.06
Shares Outstanding 137755008
Shares Floating 136946276
Shares Outstanding 137755008
Shares Floating 136946276
Percent Insiders 0.33
Percent Institutions 86.66

ai summary icon Upturn AI SWOT

Cummins Inc

stock logo

Company Overview

overview logo History and Background

Cummins Inc. was founded in 1919 by Clessie Lyle Cummins and William G. Irwin. Initially focused on diesel engine technology, Cummins has grown to become a global power leader, designing, manufacturing, distributing, and servicing a broad portfolio of power solutions.

business area logo Core Business Areas

  • Engine Segment: Designs and manufactures diesel and natural gas engines and engine-related parts and components for on-highway and off-highway use.
  • Distribution Segment: Distributes parts and power generation systems and provides service and repair through a global network.
  • Components Segment: Supplies products which complement Cummins' engine business, including aftertreatment systems, turbochargers, filtration products and electronics.
  • Power Systems Segment: Supplies power generation systems, including alternators, generator sets, power units and other components.
  • Accelera Segment: Develops and manufactures zero-emissions technologies, including battery electric and hydrogen fuel cell power solutions, for commercial and industrial applications.

leadership logo Leadership and Structure

Jennifer Rumsey is the current CEO of Cummins Inc. The company operates with a decentralized structure, with each business segment having its own leadership team.

Top Products and Market Share

overview logo Key Offerings

  • Diesel Engines: Cummins produces a wide range of diesel engines for various applications, including trucks, buses, construction equipment, and marine vessels. Cummins holds a significant market share in the heavy-duty truck engine market in North America. Competitors include Caterpillar, Daimler, and Volvo.
  • Power Generation Systems: Cummins offers power generation systems, including generators, alternators, and transfer switches for standby and prime power applications. Competitors include Caterpillar, Generac, and Kohler.
  • Aftertreatment Systems: Cummins Emission Solutions develops and manufactures aftertreatment systems, which are critical for meeting emissions regulations. Competitors include Tenneco, Eberspaecher, and Faurecia.
  • Filtration Products: Cummins Filtration designs, manufactures, and sells air, fuel, lube, hydraulic and coolant filtration, and chemical products for diesel and gas-powered equipment around the world under the Fleetguardu00ae brand.

Market Dynamics

industry overview logo Industry Overview

The engine and power generation industry is undergoing significant transformation driven by stricter emissions regulations, the growth of electrification and alternative fuels, and increasing demand for reliable power solutions.

Positioning

Cummins is a leading player in the engine and power generation industry, with a strong reputation for quality, reliability, and innovation. The company is investing heavily in zero-emissions technologies to maintain its competitive edge.

Total Addressable Market (TAM)

The total addressable market is estimated in the hundreds of billions, including engine and power solutions markets. Cummins aims to capture a significant share through investment in new technology like hydrogen and batteries.

Upturn SWOT Analysis

Strengths

  • Strong brand recognition and reputation
  • Global distribution network
  • Diversified product portfolio
  • Significant investment in R&D
  • Strong financial performance

Weaknesses

  • Dependence on diesel engine market
  • Exposure to cyclical industries
  • Slower adoption of new technologies compared to pure-play EV companies
  • Complex supply chain

Opportunities

  • Growth in emerging markets
  • Increasing demand for electrification and alternative fuels
  • Expansion into new markets and applications
  • Acquisitions of companies with complementary technologies
  • Government incentives for clean energy

Threats

  • Stricter emissions regulations
  • Competition from new entrants in the electric vehicle market
  • Economic downturns
  • Fluctuations in commodity prices
  • Geopolitical instability

Competitors and Market Share

competitor logo Key Competitors

  • CAT
  • DE
  • MTUAY

Competitive Landscape

Cummins has a strong competitive position due to its brand recognition, global distribution network, and diversified product portfolio. However, the company faces increasing competition from new entrants in the electric vehicle market.

Major Acquisitions

Jacobs Vehicle Systems

  • Year: 2022
  • Acquisition Price (USD millions): 325
  • Strategic Rationale: The acquisition of Jacobs Vehicle Systems enhances Cummins' engine braking technology and expands its component portfolio.

Meritor, Inc.

  • Year: 2022
  • Acquisition Price (USD millions): 3700
  • Strategic Rationale: The acquisition of Meritor, Inc. accelerates Cumminsu2019 investment in electrification with strategic axle and brake technology.

Growth Trajectory and Initiatives

Historical Growth: Cummins has experienced moderate growth over the past decade, driven by increasing demand for its products and services.

Future Projections: Analysts expect Cummins to continue to grow in the coming years, driven by the transition to electrification and alternative fuels. Revenue growth is projected at 5-8% annually.

Recent Initiatives: Recent initiatives include investments in zero-emissions technologies, acquisitions of companies with complementary technologies, and expansion into new markets.

Summary

Cummins Inc. is a robust player in the engine and power generation sector, benefiting from a strong brand and global presence. Its commitment to innovation and diversification is aiding its transition into electric power. However, it faces challenges like market volatility and competition from EV-focused companies. Continued investment in new technologies and adapting to stricter emission standards will be critical.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company Filings
  • Analyst Reports
  • Industry Publications
  • Investor Presentations

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual research and consultation with a financial advisor.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Cummins Inc

Exchange NYSE
Headquaters Columbus, IN, United States
IPO Launch date 1984-12-18
CEO & Chairman of the Board Ms. Jennifer W. Rumsey
Sector Industrials
Industry Specialty Industrial Machinery
Full time employees 69600
Full time employees 69600

Cummins Inc. offers various power solutions worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; truck, trailer, on- and off-highway, and other products. It also provides aftertreatment technology and solutions comprising custom engineering systems and integrated controls, oxidation catalysts, particulate filters, and selective catalytic reduction systems, as well as engineered components, including dosers; turbochargers, fuel systems, and valvetrain technologies; electronic control modules, sensors, and supporting software; and automated manual transmissions, dual-clutch transmissions, and automatic transmissions for internal combustion engines. In addition, the company sells and offers support services power generation systems, high-horsepower engines, and heavy-duty and medium-duty engines; offers application engineering services, custom-designed assemblies, and inshop and field-based repair services; and retails and wholesales aftermarket parts. Further, it offers standby and prime power generators, controls, paralleling systems, and transfer switches; turnkey solutions for distributed generation and energy management applications using natural gas, diesel, and newer alternative sustainable fuels; diesel and natural gas high-speed, high-horsepower engines; and A/C generator/alternator products. Additionally, the company provides electrified power systems, including batteries, fuel cells, and electric powertrain technologies, as well as hydrogen production technologies. It sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.