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How to buy Cummins stock (CMI)

Buy Cummins stock in 5 easy steps, view past price performance and learn what’s ahead for the company.

Cummins is a specialty industrial machinery business based in the US. Cummins shares (CMI) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was $361.85 – an increase of 1.51% over the previous week. Cummins employs 75,500 staff and has a trailing 12-month revenue of around $34.2 billion.

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Cummins stock price (NYSE: CMI)

Use our graph to track the performance of CMI stocks over time.

Cummins shares at a glance

Information last updated 2024-11-15.
Latest market close$361.85
52-week range$216.04 - $370.21
50-day moving average $327.54
200-day moving average $294.23
Wall St. target price$361.42
PE ratio 23.8043
Dividend yield $6.86 (2%)
Earnings per share (TTM) $15.28

Is it a good time to buy Cummins stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Cummins price performance over time

Historical closes compared with the close of $363.73 from 2024-11-14

1 week (2024-11-08) 2.04%
1 month (2024-10-15) 9.33%
3 months (2024-08-15) 21.32%
6 months (2024-05-15) 24.51%
1 year (2023-11-15) 62.56%
2 years (2022-11-15) 52.96%
3 years (2021-11-15) 66.88%
5 years (2019-11-15) 123.93%

Is Cummins stock undervalued or overvalued?

Valuing Cummins stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Cummins's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Cummins's P/E ratio

Cummins's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 24x. In other words, Cummins shares trade at around 24x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Cummins's PEG ratio

Cummins's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.7266. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Cummins's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Cummins's EBITDA

Cummins's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $4.6 billion.

The EBITDA is a measure of a Cummins's overall financial performance and is widely used to measure a its profitability.

Cummins financials

Revenue TTM $34.2 billion
Operating margin TTM 11.63%
Gross profit TTM $6.7 billion
Return on assets TTM 6.89%
Return on equity TTM 19.38%
Profit margin 6.13%
Book value $75.19
Market Capitalization $49.9 billion

TTM: trailing 12 months

Cummins's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Cummins.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Cummins's total ESG risk score

Total ESG risk: 19.33

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Cummins's overall score of 19.33 (as at 12/31/2018) is excellent – landing it in it in the 16th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Cummins is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Cummins's environmental score

Environmental score: 5.72/100

Cummins's environmental score of 5.72 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Cummins is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Cummins's social score

Social score: 7.67/100

Cummins's social score of 7.67 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Cummins is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Cummins's governance score

Governance score: 6.45/100

Cummins's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Cummins is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Cummins's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Cummins scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Cummins has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Cummins Inc was last rated for ESG on: 2019-01-01.

Total ESG score 19.33
Total ESG percentile 16.18
Environmental score 5.72
Environmental score percentile 3
Social score 7.67
Social score percentile 3
Governance score 6.45
Governance score percentile 3
Level of controversy 2

Cummins share dividends

35%

Dividend payout ratio: 34.67% of net profits

Recently Cummins has paid out, on average, around 0% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Cummins shareholders could enjoy a 0% return on their shares, in the form of dividend payments. In Cummins's case, that would currently equate to about $6.86 per share.

While Cummins's payout ratio might seem fairly standard, it's worth remembering that Cummins may be investing much of the rest of its net profits in future growth.

Cummins's most recent dividend payout was on 4 December 2024. The latest dividend was paid out to all shareholders who bought their shares by 21 November 2024 (the "ex-dividend date").

Have Cummins's shares ever split?

Cummins's shares were split on a 2:1 basis on 2 January 2008 . So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Cummins shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Cummins shares which in turn could have impacted Cummins's share price.

Cummins share price volatility

Over the last 12 months, Cummins's shares have ranged in value from as little as $216.0426 up to $370.21. A popular way to gauge a stock's volatility is its "beta".

CMI.US volatility(beta: 0.97)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Cummins's is 0.971. This would suggest that Cummins's shares are less volatile than average (for this exchange).

Cummins overview

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines. It provides power generation systems, horsepower engines, heavy and medium duty engines, application engineering services, custom-designed assemblies, retail and wholesale aftermarket parts, and in-shop and field-based repair services. In addition, the company offers emission solutions; turbochargers; air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and electronic control modules, sensors, and supporting software, as well as new, replacement, and remanufactured fuel systems. Further, it provides automated transmissions; standby and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford and AVK brands; and electrified power systems with components and subsystems, including battery, fuel cell, and hydrogen production technologies.

Frequently asked questions

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What percentage of Cummins is owned by insiders or institutions?
Currently 0.401% of Cummins shares are held by insiders and 88.064% by institutions.
How many people work for Cummins?
Latest data suggests 75,500 work at Cummins.
When does the fiscal year end for Cummins?
Cummins's fiscal year ends in December.
Where is Cummins based?
Cummins's address is: 500 Jackson Street, Columbus, IN, United States, 47202-3005
What is Cummins's ISIN number?
Cummins's international securities identification number is: US2310211063
What is Cummins's CUSIP number?
Cummins's Committee on Uniform Securities Identification Procedures number is: 125761304

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