| Company name | Cummins Inc. |
| Stock ticker | CMI |
| Live stock price | [stckqut]CMI[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Fair |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $146.01 |
| Target stock price (averages with growth) | $136.82 |
| Target stock price (averages with no growth) | $73.37 |
| Target stock price (manual assumptions) | $141.56 |
The following company description is from Google Finance: http://www.google.com/finance?q=cmi
Cummins Inc is a diesel engine manufacturer. The Company designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products, including filtration, after-treatment, turbochargers, fuel systems, controls systems, air handling systems and electric power generation systems. The Company has four operating segments: Engine, Components, Power Generation and Distribution. The Engine segment manufactures and markets a broad range of diesel and natural gas powered engines. The Components segment supplies products which complement Engine segment such as after-treatment systems, turbochargers, filtration products and fuel systems for commercial diesel applications. The Power Generation segment designs and manufactures components that make up power generation systems, including controls, alternators, transfer switches and switchgear. The Distribution segment distributes the products and services to end-users.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Cummins Inc.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Cummins Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $137.88
- Growth: 0.11
- Current EPS (TTM): $9.02
- P/E: 15
- Future EPS Calc: $15.19
- Future Stock Price Calc: $227.98
- Target stock price: $141.56
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I hope that this makes you a Confident Investor.