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.

Financial Strength

6/10

Name	Current	Vs Industry
Cash-To-Debt	0.42
Equity-to-Asset	0.29
Debt-to-Equity	0.81
Debt-to-EBITDA	1.72
Interest Coverage	3.54
Piotroski F-Score	6/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	3.48	Distress Grey Safe
Beneish M-Score	-3.09	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

7/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	21.5
	3-Year EBITDA Growth Rate	0.5
	3-Year EPS without NRI Growth Rate	-24.2
	3-Year FCF Growth Rate	10.2
	3-Year Book Growth Rate	4.6
	Future 3-5Y EPS without NRI Growth Rate	7.1
	Future 3-5Y Total Revenue Growth Rate	1.2

Momentum Rank

9/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	54.65
	9-Day RSI	47.84
	14-Day RSI	48.72
	6-1 Month Momentum %	36.89
	12-1 Month Momentum %	32.82

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	1.34
	Quick Ratio	0.84
	Cash Ratio	0.26
	Days Inventory	82.9
	Days Sales Outstanding	60.96
	Days Payable	62.19

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	2.31
	Dividend Payout Ratio	1.26
	3-Year Dividend Growth Rate	7.2
	Forward Dividend Yield %	2.35
	5-Year Yield-on-Cost %	3.35
	3-Year Average Share Buyback Ratio	1.3
	Shareholder Yield %	1.91

Profitability Rank

8/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	24.29
	Operating Margin %	3.92
	Net Margin %	5.7
	FCF Margin %	7.52
	ROE %	19.96
	ROA %	6.09
	ROIC %	4.48
	ROC (Joel Greenblatt) %	32.36
	ROCE %	15.91
	Years of Profitability over Past 10-Year	10

GF Value Rank

6/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	21.11
	Forward PE Ratio	15.25
	PE Ratio without NRI	54.76
	Shiller PE Ratio	21.05
	Price-to-Owner-Earnings	9.84
	PEG Ratio	36.51
	PS Ratio	1.2
	PB Ratio	4.33
	Price-to-Tangible-Book	9.33
	Price-to-Free-Cash-Flow	16.02
	Price-to-Operating-Cash-Flow	10.92
	EV-to-EBIT	13.47
	EV-to-Forward-EBIT	11.2
	EV-to-EBITDA	10.15
	EV-to-Forward-EBITDA	8.83
	EV-to-Revenue	1.27
	EV-to-Forward-Revenue	1.31
	EV-to-FCF	16.82
	Price-to-Projected-FCF	1.42
	Price-to-DCF (Earnings Based)	4.75
	Price-to-DCF (FCF Based)	1.23
	Price-to-Median-PS-Value	0.98
	Price-to-Peter-Lynch-Fair-Value	9.31
	Price-to-Graham-Number	4.77
	Earnings Yield (Greenblatt) %	7.42
	FCF Yield %	6.52
	Forward Rate of Return (Yacktman) %	10.42

GF Value: $292.06

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