Cummins Stock Buy Hold or Sell Recommendation
| CMI Stock | USD 287.56 3.86 1.32% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Cummins is 'Strong Hold'. Macroaxis provides Cummins buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Cummins positions. The advice algorithm takes into account all of Cummins' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Cummins' buy or sell advice are summarized below:
Real Value 268.88 | Target Price 257.88 | Hype Value 290.95 | Market Value 287.56 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Cummins given historical horizon and risk tolerance towards Cummins. When Macroaxis issues a 'buy' or 'sell' recommendation for Cummins, the advice is generated through an automated system that utilizes algorithms and statistical models.
Cummins |
Execute Cummins Buy or Sell Advice
The Cummins recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Cummins. Macroaxis does not own or have any residual interests in Cummins or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Cummins' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Cummins Trading Alerts and Improvement Suggestions
| Cummins is unlikely to experience financial distress in the next 2 years | |
| Cummins has a strong financial position based on the latest SEC filings | |
| Over 89.0% of the company shares are held by institutions such as insurance companies | |
| On 7th of March 2024 Cummins paid $ 1.68 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: FIRST-QUARTER 2024 SALES |
Cummins Returns Distribution Density
The distribution of Cummins' historical returns is an attempt to chart the uncertainty of Cummins' future price movements. The chart of the probability distribution of Cummins daily returns describes the distribution of returns around its average expected value. We use Cummins price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Cummins returns is essential to provide solid investment advice for Cummins.
| Mean Return | 0.36 | Value At Risk | -1.74 | Potential Upside | 2.34 | Standard Deviation | 1.39 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Cummins historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Cummins Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Cummins is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cummins backward and forwards among themselves. Cummins' institutional investor refers to the entity that pools money to purchase Cummins' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Ameriprise Financial Inc | 2023-12-31 | 1.7 M | Dimensional Fund Advisors, Inc. | 2023-12-31 | 1.7 M | Legal & General Group Plc | 2023-12-31 | 1.6 M | Stifel Financial Corp | 2023-12-31 | 1.6 M | Ontario Teachers Pension Plan Board | 2023-12-31 | 1.4 M | Lsv Asset Management | 2023-12-31 | 1.4 M | Hotchkis & Wiley Capital Management Llc | 2023-12-31 | 1.4 M | Ubs Asset Mgmt Americas Inc | 2023-12-31 | 1.3 M | Norges Bank | 2023-12-31 | 1.2 M | Vanguard Group Inc | 2023-12-31 | 17.8 M | Blackrock Inc | 2023-12-31 | 11.5 M |
Cummins Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 291M | 46M | (945M) | (567M) | 330M | 346.5M | |
| Change In Cash | (174M) | 2.3B | (809M) | (491M) | 78M | 77.1M | |
| Free Cash Flow | 2.4B | 2.1B | 1.5B | 1.0B | 2.8B | 2.9B | |
| Depreciation | 672M | 673M | 662M | 784M | 1.0B | 1.1B | |
| Other Non Cash Items | (13M) | (354M) | (249M) | 275M | 214M | 224.7M | |
| Dividends Paid | 761M | 782M | 809M | 855M | (921M) | (875.0M) | |
| Capital Expenditures | 775M | 575M | 786M | 916M | 1.2B | 1.3B | |
| Net Income | 2.3B | 1.8B | 2.2B | 2.2B | 840M | 885.8M | |
| End Period Cash Flow | 1.1B | 3.4B | 2.6B | 2.1B | 2.2B | 2.3B | |
| Investments | (170M) | (171M) | (181M) | (4.2B) | (1.5B) | (1.5B) | |
| Net Borrowings | (163M) | 1.6B | (32M) | 2.8B | 3.2B | 3.4B | |
| Change To Netincome | 18M | (424M) | (534M) | (134M) | (120.6M) | (114.6M) | |
| Change Receivables | 195M | (51M) | (174M) | (697M) | (627.3M) | (595.9M) |
Cummins Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Cummins or Machinery sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Cummins' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Cummins stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.36 | |
β | Beta against NYSE Composite | -0.17 | |
σ | Overall volatility | 1.38 | |
Ir | Information ratio | 0.21 |
Cummins Volatility Alert
Cummins has relatively low volatility with skewness of 0.6 and kurtosis of 1.39. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cummins' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cummins' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Cummins Implied Volatility
Cummins' implied volatility exposes the market's sentiment of Cummins stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Cummins' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Cummins stock will not fluctuate a lot when Cummins' options are near their expiration.
Cummins Fundamentals Vs Peers
Comparing Cummins' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Cummins' direct or indirect competition across all of the common fundamentals between Cummins and the related equities. This way, we can detect undervalued stocks with similar characteristics as Cummins or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Cummins' fundamental indicators could also be used in its relative valuation, which is a method of valuing Cummins by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Cummins to competition |
| Fundamentals | Cummins | Peer Average |
| Return On Equity | 0.0835 | -0.31 |
| Return On Asset | 0.0692 | -0.14 |
| Profit Margin | 0.02 % | (1.27) % |
| Operating Margin | 0.09 % | (5.51) % |
| Current Valuation | 47.43 B | 16.62 B |
| Shares Outstanding | 136.76 M | 571.82 M |
| Shares Owned By Insiders | 0.40 % | 10.09 % |
| Shares Owned By Institutions | 89.10 % | 39.21 % |
| Number Of Shares Shorted | 2.75 M | 4.71 M |
| Price To Earning | 18.70 X | 28.72 X |
| Price To Book | 4.61 X | 9.51 X |
| Price To Sales | 1.20 X | 11.42 X |
| Revenue | 34.06 B | 9.43 B |
| Gross Profit | 6.74 B | 27.38 B |
| EBITDA | 1.76 B | 3.9 B |
| Net Income | 840 M | 570.98 M |
| Cash And Equivalents | 2.1 B | 2.7 B |
| Cash Per Share | 21.02 X | 5.01 X |
| Total Debt | 7.21 B | 5.32 B |
| Debt To Equity | 0.91 % | 48.70 % |
| Current Ratio | 1.37 X | 2.16 X |
| Book Value Per Share | 62.41 X | 1.93 K |
| Cash Flow From Operations | 3.97 B | 971.22 M |
| Short Ratio | 0.41 X | 4.00 X |
| Earnings Per Share | 5.16 X | 3.12 X |
| Price To Earnings To Growth | 0.75 X | 4.89 X |
| Target Price | 293.87 | |
| Number Of Employees | 75.5 K | 18.84 K |
| Beta | 1.04 | -0.15 |
| Market Capitalization | 40.29 B | 19.03 B |
| Total Asset | 32.01 B | 29.47 B |
| Retained Earnings | 17.85 B | 9.33 B |
| Working Capital | 2.29 B | 1.48 B |
Note: Acquisition by Lisa Yoder of 1407 shares of Cummins subject to Rule 16b-3 [view details]
Cummins Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Cummins . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 74531.1 | |||
| Daily Balance Of Power | (0.45) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 289.18 | |||
| Day Typical Price | 288.64 | |||
| Price Action Indicator | (3.55) | |||
| Period Momentum Indicator | (3.86) |
About Cummins Buy or Sell Advice
When is the right time to buy or sell Cummins? Buying financial instruments such as Cummins Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 4.2B | 7.9B | 7.2B | 7.6B | Total Assets | 23.7B | 30.3B | 32.0B | 33.6B |
Use Investing Ideas to Build Portfolios
In addition to having Cummins in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Cummins Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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When running Cummins' price analysis, check to measure Cummins' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cummins is operating at the current time. Most of Cummins' value examination focuses on studying past and present price action to predict the probability of Cummins' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cummins' price. Additionally, you may evaluate how the addition of Cummins to your portfolios can decrease your overall portfolio volatility.
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Is Cummins' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cummins. If investors know Cummins will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cummins listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.628 | Dividend Share 6.5 | Earnings Share 5.16 | Revenue Per Share 240.402 | Quarterly Revenue Growth 0.099 |
The market value of Cummins is measured differently than its book value, which is the value of Cummins that is recorded on the company's balance sheet. Investors also form their own opinion of Cummins' value that differs from its market value or its book value, called intrinsic value, which is Cummins' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cummins' market value can be influenced by many factors that don't directly affect Cummins' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cummins' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cummins is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cummins' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.