Demystifying Cummins: Insights From 5 Analyst Reviews

Analysts' ratings for Cummins CMI over the last quarter vary from bullish to bearish, as provided by 5 analysts.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $255.2, with a high estimate of $285.00 and a low estimate of $225.00. Witnessing a positive shift, the current average has risen by 0.34% from the previous average price target of $254.33.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Cummins. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cummins. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Cummins compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Cummins's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Cummins's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Cummins analyst ratings.

All You Need to Know About Cummins

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.

Financial Insights: Cummins

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, Cummins showcased positive performance, achieving a revenue growth rate of 1.33% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Cummins's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -16.75%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Cummins's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -14.67%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Cummins's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -4.46%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Cummins's debt-to-equity ratio is below the industry average at 0.76, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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