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Cummins Inc (CMI) is a leading specialty industrial machinery business with stocks listed in the US. It opened the day at US$232.83 after a previous close of US$237.33. During the day the price has varied from a low of USD230.85 to a high of USD236.42. The latest price was USD233 (25 minute delay). Cummins is listed on the NYSE. All prices are listed in US Dollars.
How to buy shares in Cummins
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Cummins. Find the share by name or ticker symbol: CMI. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Cummins reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$260.97, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Cummins, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Cummins. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Cummins key stats
- Compare share trading platforms
- Is Cummins stock a buy or sell?
- Cummins performance over time
- Can I short Cummins shares?
- Is Cummins suitable for ethical investing?
- Are Cummins shares over-valued?
- Cummins's financials
- How volatile are Cummins shares?
- Does Cummins pay a dividend?
- Have Cummins shares ever split?
- Other common questions
Cummins share priceUse our graph to track the performance of CMI stocks over time.
Cummins shares at a glance
|52-week range||US$159.9432 - US$275.647|
|50-day moving average||US$258.1734|
|200-day moving average||US$248.9468|
|Dividend yield||US$5.322 (2.16%)|
|Earnings per share (TTM)||US$12.665|
Compare share trading platforms to buy stock
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Is it a good time to buy Cummins stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Cummins price performance over time
|1 week (2021-06-14)||-6.21%|
|1 month (2021-05-21)||-9.26%|
|3 months (2021-03-19)||-12.37%|
|6 months (2020-12-18)||3.87%|
|1 year (2020-06-19)||33.69%|
|2 years (2019-06-20)||35.78%|
|3 years (2018-06-20)||68.13%|
|5 years (2016-06-20)||100.91%|
Is Cummins under- or over-valued?
Valuing Cummins stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Cummins's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Cummins's P/E ratio
Cummins's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 19x. In other words, Cummins shares trade at around 19x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Cummins's PEG ratio
Cummins's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.4665. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Cummins's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Cummins's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$2.7 billion.
The EBITDA is a measure of a Cummins's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$20.9 billion|
|Operating margin TTM||9.85%|
|Gross profit TTM||US$4.9 billion|
|Return on assets TTM||5.98%|
|Return on equity TTM||22.22%|
|Market capitalisation||US$34.7 billion|
TTM: trailing 12 months
Shorting Cummins shares
There are currently 3.4 million Cummins shares held short by investors – that's known as Cummins's "short interest". This figure is 5.3% up from 3.2 million last month.
There are a few different ways that this level of interest in shorting Cummins shares can be evaluated.
Cummins's "short interest ratio" (SIR)
Cummins's "short interest ratio" (SIR) is the quantity of Cummins shares currently shorted divided by the average quantity of Cummins shares traded daily (recently around 967522.3796034). Cummins's SIR currently stands at 3.53. In other words for every 100,000 Cummins shares traded daily on the market, roughly 3530 shares are currently held short.
However Cummins's short interest can also be evaluated against the total number of Cummins shares, or, against the total number of tradable Cummins shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Cummins's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Cummins shares in existence, roughly 20 shares are currently held short) or 0.0235% of the tradable shares (for every 100,000 tradable Cummins shares, roughly 24 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Cummins.
Find out more about how you can short Cummins stock.
Cummins's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Cummins.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Cummins's total ESG risk score
Total ESG risk: 19.33
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Cummins's overall score of 19.33 (as at 12/31/2018) is excellent – landing it in it in the 16th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Cummins is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Cummins's environmental score
Environmental score: 5.72/100
Cummins's environmental score of 5.72 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Cummins is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Cummins's social score
Social score: 7.67/100
Cummins's social score of 7.67 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Cummins is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Cummins's governance score
Governance score: 6.45/100
Cummins's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Cummins is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Cummins's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Cummins scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Cummins has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||19.33|
|Total ESG percentile||16.18|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
|Level of controversy||2|
Cummins share dividends
Dividend payout ratio: 32.19% of net profits
Recently Cummins has paid out, on average, around 32.19% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.2% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Cummins shareholders could enjoy a 2.2% return on their shares, in the form of dividend payments. In Cummins's case, that would currently equate to about $5.322 per share.
While Cummins's payout ratio might seem fairly standard, it's worth remembering that Cummins may be investing much of the rest of its net profits in future growth.
Cummins's most recent dividend payout was on 2 June 2021. The latest dividend was paid out to all shareholders who bought their shares by 19 May 2021 (the "ex-dividend date").
Have Cummins's shares ever split?
Cummins's shares were split on a 2:1 basis on 2 January 2008. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Cummins shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Cummins shares which in turn could have impacted Cummins's share price.
Cummins share price volatility
Over the last 12 months, Cummins's shares have ranged in value from as little as US$159.9432 up to US$275.647. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Cummins's is 1.0783. This would suggest that Cummins's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and New Power. The company offers diesel and natural gas powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers new parts and services, as well as remanufactured parts and engines. It also provides power generation systems, high-horsepower engines, heavy and medium duty engines, application engineering services, custom-designed assemblies, retail and wholesale aftermarket parts, and in-shop and field-based repair services. In addition, the company offers emission solutions; turbochargers; air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and electronic control modules, sensors, and supporting software, as well as new, replacement, and remanufactured fuel systems. Further, it provides automated transmissions; standby and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford and AVK brands; and electrified power systems with components and subsystems, including battery, fuel cell, and hydrogen production technologies. Additionally, it offers filtration, aftertreatment, controls systems, air handling systems, automated transmissions, and electric power generation systems. The company sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
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