These Fundamentals Make Cummins Inc. (NYSE:CMI) Truly Worth Looking At
Attractive stocks have exceptional fundamentals. In the case of Cummins Inc. (NYSE:CMI), there's is a financially-sound , dividend-paying company with a strong history of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Cummins here.
Solid track record with excellent balance sheet and pays a dividend
Over the past few years, CMI has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 29%, which is what investors like to see! CMI's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that CMI manages its cash and cost levels well, which is a crucial insight into the health of the company. CMI seems to have put its debt to good use, generating operating cash levels of 1.2x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For those seeking income streams from their portfolio, CMI is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.6%.
Next Steps:
For Cummins, I've put together three fundamental aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for CMI’s future growth? Take a look at our free research report of analyst consensus for CMI’s outlook.
Valuation: What is CMI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CMI is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CMI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
