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Upturn AI SWOT - About
CMI 
Cummins Inc (CMI)
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Upturn Advisory Summary
04/01/2025: CMI (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit 24.21% | Avg. Invested days 47 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 43.36B USD | Price to earnings Ratio 11.12 | 1Y Target Price 377.97 |
Price to earnings Ratio 11.12 | 1Y Target Price 377.97 | ||
Volume (30-day avg) 962959 | Beta 1 | 52 Weeks Range 257.45 - 386.06 | Updated Date 04/1/2025 |
52 Weeks Range 257.45 - 386.06 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 2.32% | Basic EPS (TTM) 28.37 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 11.57% | Operating Margin (TTM) 11.71% |
Management Effectiveness
Return on Assets (TTM) 7.45% | Return on Equity (TTM) 38.36% |
Valuation
Trailing PE 11.12 | Forward PE 14.35 | Enterprise Value 48772500028 | Price to Sales(TTM) 1.27 |
Enterprise Value 48772500028 | Price to Sales(TTM) 1.27 | ||
Enterprise Value to Revenue 1.43 | Enterprise Value to EBITDA 7.7 | Shares Outstanding 137480992 | Shares Floating 136670025 |
Shares Outstanding 137480992 | Shares Floating 136670025 | ||
Percent Insiders 0.42 | Percent Institutions 86.97 |
Analyst Ratings
Rating 3.5 | Target Price 380.48 | Buy 2 | Strong Buy 6 |
Buy 2 | Strong Buy 6 | ||
Hold 14 | Sell 2 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Cummins Inc
Company Overview
History and Background
Cummins Inc. was founded in 1919 by Clessie Lyle Cummins. Initially focused on diesel engine development, the company evolved into a global power leader through innovation, strategic partnerships, and acquisitions. Significant milestones include pioneering diesel technology, expanding into diverse markets, and embracing alternative power solutions.
Core Business Areas
- Engine Segment: Designs and manufactures diesel and natural gas engines used in various applications, including on-highway vehicles, industrial equipment, and power generation.
- Distribution Segment: Provides parts, service, and support for Cummins products and other manufacturers' products through a network of company-owned and independent distributors.
- Components Segment: Supplies aftertreatment systems, turbochargers, filtration products, fuel systems, and electronics to original equipment manufacturers (OEMs) and aftermarket customers.
- Power Systems Segment: Provides power generation systems, including generator sets, transfer switches, and switchgear, for standby, prime power, and distributed generation applications.
- Accelera Segment: Develops and manufactures zero-emission technologies, including battery electric and fuel cell power solutions. This segment includes the acquisition of Meritor.
Leadership and Structure
Jennifer Rumsey is the current CEO. The organizational structure consists of business segments reporting to executive leadership, with centralized functions supporting global operations.
Top Products and Market Share
Key Offerings
- Competitors: Daimler Truck (DTRUY) and PACCAR (PCAR)
- Heavy-Duty Diesel Engines: Cummins is a leading provider of heavy-duty diesel engines for commercial vehicles. Market share varies by region and application, but Cummins holds a significant portion of the North American market. Competitors include Daimler Truck (DTRUY) and PACCAR (PCAR). Estimated revenue from Heavy-Duty Diesel Engines 6.5 Billion USD. Market Share of about 35% globally.
- Competitors: Caterpillar (CAT) and Generac (GNRC)
- Generator Sets: Cummins manufactures and distributes generator sets for various applications, including standby power, prime power, and distributed generation. Competitors include Caterpillar (CAT) and Generac (GNRC). Revenue estiamtes from Generator sets is 2.5 Billion USD. Market share of about 15% globally
- Aftertreatment Systems: Cummins designs and manufactures aftertreatment systems to reduce emissions from diesel engines. Revenue estimated at 4 billion USD. Market share of about 28% globally
- Competitors: BorgWarner (BWA), Tenneco (TEN)
Market Dynamics
Industry Overview
The engine and power generation industry is undergoing significant transformation, driven by increasing environmental regulations, technological advancements, and the shift towards alternative power solutions. Electrification and hydrogen fuel cells are gaining prominence.
Positioning
Cummins is positioned as a technology leader in the power solutions market, with a focus on both traditional diesel engines and emerging alternative power technologies. Its competitive advantages include a strong brand reputation, global distribution network, and diversified product portfolio.
Total Addressable Market (TAM)
The estimated TAM for the markets Cummins operates in (including engines, power generation, components, and alternative power) is in the hundreds of billions of dollars globally. Cummins is strategically positioned to capture a significant portion of this TAM through its diverse product offerings and investments in new technologies.
Upturn SWOT Analysis
Strengths
- Strong brand reputation
- Global distribution network
- Diversified product portfolio
- Technology leadership
- Financial stability
Weaknesses
- Dependence on diesel engine market
- Exposure to cyclical industries
- High capital expenditure requirements
- Slow adaptation to electrification compared to focused startups
- Complexity of managing diverse business segments
Opportunities
- Growing demand for alternative power solutions
- Expansion into emerging markets
- Acquisition of complementary technologies
- Increasing adoption of digital solutions
- Government incentives for clean energy
Threats
- Stricter environmental regulations
- Increased competition from new entrants
- Economic downturns
- Supply chain disruptions
- Rapid technological changes
Competitors and Market Share
Key Competitors
- Caterpillar (CAT)
- PACCAR (PCAR)
- Deere & Company (DE)
- Generac (GNRC)
Competitive Landscape
Cummins has advantages in some engine markets but CAT has more diverse offerings and GNRC is a market leader in standby generator power for consumers. Competition is intensifying with the electrification of engine systems which is opening the door for new players.
Major Acquisitions
Meritor
- Year: 2022
- Acquisition Price (USD millions): 3700
- Strategic Rationale: The acquisition of Meritor strengthens Cummins' components business and accelerates the development of electric powertrain solutions.
Growth Trajectory and Initiatives
Historical Growth: Cummins has experienced steady growth in revenue and earnings over the past decade, driven by both organic growth and strategic acquisitions.
Future Projections: Analysts project continued growth for Cummins, driven by increasing demand for its products and services, as well as its investments in new technologies. Revenue growth is expected at 5-7% annually.
Recent Initiatives: Recent strategic initiatives include the acquisition of Meritor, investments in electrification and hydrogen fuel cell technologies, and expansion into new markets.
Summary
Cummins is a well-established and diversified company within the diesel and alternative energy space. Its strong financial position and global presence are advantageous. However, the company's reliance on diesel engines and the rapid shift to alternative energy may pose challenges. Investment in and execution of alternative power solutions will be key to future success.
Similar Companies
CAT
Caterpillar Inc
CAT
Caterpillar Inc
DE
Deere & Company
DE
Deere & Company
GNRC
Generac Holdings Inc
GNRC
Generac Holdings Inc
PCAR
PACCAR Inc
PCAR
PACCAR Inc
Sources and Disclaimers
Data Sources:
- Cummins Inc. Investor Relations
- SEC Filings (10K, 10Q)
- Market Research Reports
- Analyst Estimates
Disclaimers:
The information provided is for informational purposes only and should not be construed as investment advice. Market data can change frequently, and the reader is responsible for conducting their own due diligence.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Cummins Inc
Exchange NYSE | Headquaters Columbus, IN, United States | ||
IPO Launch date 1984-12-18 | CEO & Chairman of the Board Ms. Jennifer W. Rumsey | ||
Sector Industrials | Industry Specialty Industrial Machinery | Full time employees 69600 | Website https://www.cummins.com |
Full time employees 69600 | Website https://www.cummins.com | ||
Cummins Inc. offers various power solutions worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; truck, trailer, on- and off-highway, and other products. It also provides aftertreatment technology and solutions comprising custom engineering systems and integrated controls, oxidation catalysts, particulate filters, and selective catalytic reduction systems, as well as engineered components, including dosers; turbochargers, fuel systems, and valvetrain technologies; electronic control modules, sensors, and supporting software; and automated manual transmissions, dual-clutch transmissions, and automatic transmissions for internal combustion engines. In addition, the company sells and offers support services power generation systems, high-horsepower engines, and heavy-duty and medium-duty engines; offers application engineering services, custom-designed assemblies, and inshop and field-based repair services; and retails and wholesales aftermarket parts. Further, it offers standby and prime power generators, controls, paralleling systems, and transfer switches; turnkey solutions for distributed generation and energy management applications using natural gas, diesel, and newer alternative sustainable fuels; diesel and natural gas high-speed, high-horsepower engines; and A/C generator/alternator products. Additionally, the company provides electrified power systems, including batteries, fuel cells, and electric powertrain technologies, as well as hydrogen production technologies. It 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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