7 Analysts Assess Cummins: What You Need To Know

During the last three months, 7 analysts shared their evaluations of Cummins CMI, revealing diverse outlooks from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Cummins, revealing an average target of $313.57, a high estimate of $349.00, and a low estimate of $285.00. Marking an increase of 4.81%, the current average surpasses the previous average price target of $299.17.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Cummins's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Cummins. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cummins compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Cummins's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Cummins's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Cummins analyst ratings.

Delving into Cummins's Background

Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway machinery, 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 Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Cummins displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 1.83%. This indicates a notable 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 8.25%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Cummins's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.8% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Cummins's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.3%, the company showcases efficient use of assets and strong financial health.

Debt Management: Cummins's debt-to-equity ratio is below the industry average. With a ratio of 0.83, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are 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 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.