Evaluating Cummins: Insights From 8 Financial Analysts

Cummins (NYSE:CMI) underwent analysis by 8 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Cummins and provided 12-month price targets. The average target is $275.5, accompanied by a high estimate of $321.00 and a low estimate of $225.00. Observing a 9.39% increase, the current average has risen from the previous average price target of $251.86.

Diving into Analyst Ratings: An In-Depth Exploration

The analysis of recent analyst actions sheds light on the perception of Cummins by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Cummins. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Cummins compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Cummins's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Cummins's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Cummins analyst ratings.

Discovering Cummins: A Closer Look

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 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 carbon emissions, Cummins has maintained its leadership position in the industry.

A Deep Dive into Cummins's Financials

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Cummins's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 9.95%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Cummins's net margin excels beyond industry benchmarks, reaching -16.75%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Cummins's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -14.67%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Cummins's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -4.46%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.81, Cummins adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.