Cummins Inc.

Cummins Inc.

CMI

Market Cap$38.82B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Cummins Inc.Cummins Inc.9.92.53%20%0.90.8

Earnings Call Q4 2024

February 4, 2025 - AI Summary

Record Financial Performance: Cummins reported a record revenue of $34.1 billion in 2024, essentially flat compared to 2023, with EBITDA reaching $6.3 billion or 18.6% of sales, significantly improving from $3 billion or 8.9% in 2023. This growth is driven by strong demand in power generation and operational efficiency, despite a decline in North American heavy-duty truck demand.
2025 Revenue and EBITDA Guidance: For 2025, the company forecasts total revenues to decline by 2% to increase by 3% compared to 2024. EBITDA margins are expected to improve to 16.2% to 17.2%, up from 15.7% in 2024, indicating confidence in maintaining profitability despite external market challenges.
Challenges in North America Truck Market: The North American heavy-duty truck market is projected to see a significant demand drop, with industry production estimated between 260,000 to 290,000 units in 2025, flat to down 10% year-over-year. This is expected to affect engine shipments and overall revenue, particularly in the first half of 2025.

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$373.88

Current Fair Value

36.3% upside

Undervalued by 36.3% based on the discounted cash flow analysis.

Share Statistics

Market cap$38.82 Billion
Enterprise Value$45.20 Billion
Dividend Yield$7.14 (2.53362194386289%)
Earnings per Share$28.37
Beta1.07
Outstanding Shares138,382,461

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio9.88
PEG42.37
Price to Sales0.93
Price to Book Ratio3.39
Enterprise Value to Revenue1.11
Enterprise Value to EBIT25.24
Enterprise Value to Net Income21
Total Debt to Enterprise0.18
Debt to Equity0.78

Revenue Sources

No data

Insider Trades

ESG Score

No data

About Cummins Inc.

CEO: Norman Linebarger