CumminsStock Price and Value Analysis

Should you buy Cummins stock? (NYSE:CMI). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has a high dividend yield.
  • This company has stable growth.
  • This company is very stable.
  • This stock looks overpriced.
  • This company is making money at a modest rate.

CMI Free Cash Flow Trend

Based on historical returns, we believe that Cummins can grow its free cash at a rate of about 5%. That's positive!

Free Cash Flow trendline for CMI
Free Cash Flow trendline for Cummins

Inside the CMI Numbers

CMI Price
(Cummins stock price per share)
$170.88
[?] CMI Fair Price
(based on intrinsic value)
$117.19
[?] CMI Safety Price (based on a variable margin of safety) $93.75
[?] PE Ratio versus Sector 32% higher than other Industrial Goods stocks
[?] PE Ratio versus Industry 41% higher than other Diversified Machinery stocks
[?] Cash Yield 6.26%
[?] Free Cash Flow Jitter 18%
[?] Dividend Yield 3%

Is Cummins Stock on Sale?

We believe that Cummins may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Cummins looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy CMI Stock?

Does Cummins have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.