|Bid||0.00 x 800|
|Ask||0.00 x 900|
|Day's Range||157.64 - 163.90|
|52 Week Range||141.14 - 186.73|
|Beta (5Y Monthly)||1.19|
|PE Ratio (TTM)||10.91|
|Earnings Date||Apr 27, 2020 - May 03, 2020|
|Forward Dividend & Yield||5.24 (3.26%)|
|Ex-Dividend Date||Feb 19, 2020|
|1y Target Est||179.22|
Cummins Inc. (NYSE: CMI) announced that after 35 years of service to the company, Steve Chapman, Group Vice President of China and Russia, is retiring effective July 31, 2020. Nathan Stoner is replacing Chapman and being promoted to Vice President, China ABO, effective March 30, 2020.
The overall news regarding the US economy has been good, there’s no doubt about that. Annualized growth was 2.3% in 2019, which was nothing to write home about but still indicative of expansion. The January 2020 jobs report showed an expanding labor market as more job hunters looked for work, along with upwards revisions to the December and November numbers.However, buried in all of the data, there were some warning signs related to manufacturing. PMI, the purchasing managers index, used as an indicator for future manufacturing growth, was down for the third month in a row, although the 51.9 reading beat the 51.7 expectation. It also doesn’t help that industrial output is down year-over-year.President Trump’s ‘trade war’ policy towards China gets much of the blame for the downward trend in industry. The US and Chinese economies, the world’s first and second largest, are interconnected in a complex web of imports, exports, and reimports, as companies manufacture parts, ship them, put them together into final products, and export those for sale. The Phase 1 agreement between the two governments, promising relief from trade dispute and tariff pressures, gave hope for an industrial and manufacturing recovery. The coronavirus outbreak in China, however, with its quarantines and travel disruptions, is threatening to set back this major sector.Goldman Sachs analyst Jerry Revich, in a major report on industrial stocks, sees potential for a general sector turnaround. He argues leading indicators for US machinery production are rising, along with increases in construction equipment inventories. Making use of the TipRanks database and Stock Comparison tool, we have taken a closer look at three of Revich’s more interesting industrial stock picks.Caterpillar, Inc. (CAT)Caterpillar, long a staple of the Dow Jones index, is known worldwide by its famous yellow logo, and the name ‘Cat’ is instantly recognizable in construction industry. The company manufactures heavy excavation and construction equipment, from bulldozers to excavators and everything in between, and its vehicles are found around the world. The general slowdown in 2H18 was hard on the company, and CAT stock had difficulty regaining traction through most of a volatile 2019. But in Q4, the shares began to gain again.The company reported mixed results in Q4. EPS was $2.63 for the fourth quarter, beating the forecast by 11%, and more importantly, gaining 3% year-over-year. This compares especially well to the Q3 results, which missed expectations by almost 6%. The gains in earnings came even as revenue missed the estimates. Furthermore, CAT has a long history – over 15 years – of maintaining and growing its dividend payment. The current payment, $1.03 per quarter, annualizes to $4.12 and gives a yield of 2.99%. For context, dividend yields average about 2% on the S&P 500, so CAT’s is 50% higher – and it is almost double the yield of US Treasury bonds. With a payout ratio of only 39%, this dividend is secure for the foreseeable future.Back in August, Goldman Sachs' Revich set a Hold on CAT stock. He has since changed his tune, and upgraded this stock from Neutral to Buy. Revich, says, backing his new rating, “We see a combination of (i) tightening US construction equipment capacity utilization, (ii) dealer inventories and backlog approaching trough levels, and (iii) margin tailwinds in 2021 from reduced restructuring and inventory destock.”In line with his Buy rating, Revich put a $168 price target on CAT, implying a 12-month upside of 23%. (To watch Revich’s track record, click here)Like many industrial stocks, CAT has mixed reviews from Wall Street’s analysts. With 6 Buys, 5 Holds, and 1 Sell, CAT shares get a Moderate Buy from the analyst consensus. The stock is currently trading for $137, and the $155.09 average price target suggests room for 13.55% upside growth. (See Caterpillar stock analysis on TipRanks)Cummins, Inc. (CMI)While not a household name, Cummins is a major supplier in heavy industry. The company specializes in engines and ancillary components for heavy vehicles. Its products are split into several categories, including – among others – engines, power systems, filtrations systems (for engine components), and emission solutions.Cummins’ earnings declined through 2019, but Q4 showed an important gain – it beat the both earnings and revenues estimate by wide margins. Top line revenues came in at $5.58 billion, 4.5% over the forecast. While down year-over-year, the revenues supported EPS of $2.56, 5.8% better than expected. In the days since the Q4 release, CMI shares have gained 3.5%.Like CAT above, CMI slipped in 2H18, and was volatile in 2019. The stock is up 12.5% in the last 12 months, however, in a general indication of investor confidence. That confidence is smoothed along by the CMI dividend, which is even stronger than CAT’s. CMI pays out $5.24 annually, or $1.31 per quarter; the 51% payout ratio indicates a sustainable commitment to sharing profits with stakeholders. The yield, at 3.14%, is double that of Treasury bonds and well above the average in the broader markets. CMI has raised the payment 3 times in the last three years.This stock is Revich’s second major industrial upgrade. He has bumped the rating up from Neutral to Buy, and set a $200 price target, suggesting a robust upside of 20%.Defending his decision to upgrade Cummins, Revich points out favorable trends in the trucking industry, which in his view outweigh risks from exposure to Asian markets: “We believe i) US truck leading indicators have inﬂected, ii) estimates have been de-risked following 2020 guidance that embeds a 40% US Truck production cut, and iii) sentiment on vertical integration risk has turned overly negative, in our view.”CMI’s analyst reviews show another deep split, this one with 4 Buys versus 8 Holds. The aggregate is a Moderate Buy consensus rating. The average price target of $187 indicates a 13% upside from the share price of $166. (See Cummins stock analysis at TipRanks)AGCO Corporation (AGCO)The third stock on our list, AGCO, is the one that Goldman Sachs says to avoid. AGCO is a major manufacturer of agricultural equipment, and owns several well-known brands in the segment: Challenger, Massey Ferguson, and Fend, among others. The company’s products include a wide range of tractors, combines, hay tools, and sprayers, and are mainly marketed to large-scale farms. AGCO has a $5 billion market cap and a worldwide customer base.It also has seen earnings slip badly in 2H19. While the first half of last year saw quarterly reports rise sequentially and beat the estimates, the second half saw an opposite trend. Q4 was particularly bad in that respect, with the 94-cent EPS missing estimates by 39%. Revenue dropped sequentially from $2.59 billion to $2.51 billion, a 3% fall, and missed the quarterly forecast by 5.6%. Shares are down 8.6% since the earnings release.With earnings falling, investor would normally look to the dividend for relief, but AGCO gives minimal relief there. The dividend, at just 64 cents annually, yields only 0.96%, less than half the average among S&P listed companies. Even Treasury bonds, at near-historic lows of just 1.5%, are offer a better yield at present than AGCO shares.Revich, writing for Goldman on this stock, does not pull punches. He describes this company’s path forward as “unclear,” and downgrades the shares from Buy to Neutral. His 12-month price target of $70 implies a minimal upside of 4.8%.In his comments on the stock, Revich highlights the risks that AGCO faces in the South American markets. He writes, “[O]ur belief that ag equipment share of farmer capex is still in the process of bottoming, coupled with the increasingly tightening levels of used ag equipment inventory, makes us view the ag end-market as well positioned for growth in the coming quarters. However, on a micro level, we no longer feel comfortable underwriting a margin recovery in South America where AGCO continues to face further risk of share loss.” (To watch Revich’s track record, click here)Overall, AGCO is another Moderate Buy on the analyst consensus. The stock has 5 Buys, 6 Holds, and 1 Sell set in recent weeks. Shares are selling for $66.76, and the average target, $79.50, remains more bullish than Revich’s, suggesting a 19% upside. (See AGCO’s stock analysis at TipRanks)
Cummins Inc. (NYSE: CMI) will be unveiling a new range of ignition-protected marine gensets at the 2020 Miami Boat and Yacht shows. These three new models — the 9kW, 11.5kW and 13.5kW — expand upon the existing ignition-protected marine genset offerings of 4kW and 7.5kW. Cummins Onan models are designed for use in both diesel- and gasoline-powered boats, providing a safe and reliable way to increase power supply for amenities on vessels.
The Board of Directors of Cummins Inc. (NYSE: CMI) today declared a quarterly common stock cash dividend of 1.311 dollars per share, payable on March 5, 2020, to shareholders of record on February 21, 2020.
Last week saw the newest full-year earnings release from Cummins Inc. (NYSE:CMI), an important milestone in the...
While U.S. auto giants General Motors (GM) and Ford (F) post Q4 earnings beat and miss, respectively, Tesla (TSLA) signs a two-year deal with China's battery supplier CATL.
Most expect the 2020 U.S. and Canada Class 8 truck market to range between 230,000 and 260,000 vehicles compared with 309,000 retail sales in 2019, the second-best year on record. "More is better, but 240,000 is not a bad market after these last two years of very, very high market," Mack Trucks President Martin Weissburg told FreightWaves.
Engine maker Cummins Inc. (NYSE: CMI) reported lower fourth-quarter 2019 sales and earnings, partially due to a $119 million pretax charge related to the layoff of 2,000 employees in January. Cummins has several manufacturing operations near Wuhan, China, the epicenter of the outbreak. "Right now, we don't know what the exposure is going to be," Tom Linebarger, Cummins chairman and CEO, told analysts Tuesday on a conference call.
Cummins (CMI) delivered earnings and revenue surprises of 5.79% and 4.52%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
NEW YORK, NY / ACCESSWIRE / February 4, 2020 / Cummins, Inc. (NYSE:CMI) will be discussing their earnings results in their 2020 Third Quarter Earnings to be held on February 4, 2020 at 10:00 AM Eastern ...
Cummins Inc. (NYSE:CMI) shareholders might be concerned after seeing the share price drop 11% in the last quarter. On...
While Cummins' (CMI) Q4 results will likely reflect gains from its collaboration with Hyundai and Isuzu Motors, lower demand in Chinese, Indian and European markets might have dented overall profits.
(Bloomberg Opinion) -- Lots of companies talk a good game about cutting planet-heating greenhouse emissions but their disclosures and targets have tended to focus on the emissions over which they have direct control and which are easiest to measure. That’s fine in an industry such as cement, where the bulk of carbon pollution occurs during the production process. From an environmental perspective these direct, or “Scope 1,” emissions are the main problem caused by these particular companies.But the approach falls down in companies working in oil, mining, carmaking, finance, and even fashion, because oftentimes most of their carbon footprint is contained in the products they sell or help finance — not their own operations.An oil giant can boast all it likes about how it’s reduced gas flaring; if car drivers are still filling up with its gasoline, the planet will keep getting hotter. The same goes for an iron ore producer that touts how its mining trucks are incredibly fuel efficient but whose main product is the basis for steel production. Luxury goods suppliers may run the greenest workshops imaginable, but use fabrics and materials that are deeply damaging to the planet.In the past, so-called “Scope 3” emissions — the pollution contained in products sold to customers or in goods and services purchased from suppliers — either weren’t calculated or were seen as someone else’s problem. Thanks to pressure from institutional investors and activists, plus leadership from a few enlightened chief executives, corporate attitudes about this subject are evolving fast. “Scope 3 is the elephant in the room,” Mark van Baal of investor advocacy group Follow This told the Norwegian oil major Equinor ASA’s annual meeting last year.The new impetus is welcome because unless companies try to reduce the environmental damage of their products and purchasing decisions, efforts to limit catastrophic climate change will fail. At the World Economic Forum in Davos last week the bosses of some of the world’s biggest oil producers debated setting targets for Scope 3 emissions, which typically make up about 90% of their carbon footprint. BP Plc’s new boss Bernard Looney is poised to abandon his predecessor Bob Dudley’s opposition to targeting customer emissions, according to Reuters. Royal Dutch Shell Plc, Repsol SA and Total SA have already set Scope 3 targets.In mining, Rio Tinto Plc argued it had “very limited control” over customer emissions but later bowed to pressure by promising to work with its customer (and China’s top steel producer) Baowu Steel Group on lowering the steel sector’s emissions. BHP Group Ltd. and Vale SA have gone further by promising to set goals for Scope 3 emissions. In BHP’s cases these are almost 40 times greater than its direct pollution.The European Union’s new guidelines on climate reporting also recommend that large companies disclose customer and supplier emissions. Banks and insurers, whose direct emissions are typically pretty negligible, should focus on their counterparties’ emissions, the guidelines say. Unfortunately, this is not yet legally binding.Reluctance to target this stuff is hardly surprising because the numbers can be huge. Volkswagen AG acknowledged last year that its vehicles are responsible for about 2% of all the CO2 produced by humans.(3)Among the largest Scope 3 polluters are companies that the public probably don’t immediately think of as big climate sinners. It’s no surprise that Shell and Petrobras make the list, but I hadn’t thought about Cummins Inc., which sells truck engines and industrial power generators, Nexans SA, whose cables transport electricity and data, and Daikin Industries Ltd, which builds air-conditioning units.I’m not knocking these companies; at least they’re disclosing these emissions and some are setting targets to reduce them. Cummins plans to reduce absolute lifetime emissions from newly sold products by 25% by 2030, for example.Calculating the emissions from sold products is a pretty complicated exercise too. ThyssenKrupp AG’s massive Scope 3 emissions include those contained in the steel in the cars we drive around, the cement plants its factory construction unit helped build and the elevators in office buildings. Daikin has to consider the probable lifespan of its air conditioners, their energy consumption and what kind of electricity they’re powered by, plus probable leakage rates of planet-heating refrigerants.Fortunately there’s no shortage of organizations and methodologies to help compile these data. (Michael Bloomberg, founder of Bloomberg News and its parent Bloomberg LP, chairs the FSB Task Force on Climate-related Financial Disclosures).Regrettably, not all large manufacturers have seen the light through the smoke. The copious sustainability reports of some companies still don’t spell out the total emissions of the products they sell. Volvo AB told me there’s no globally harmonized standard on how to calculate and disclose Co2 from heavy duty trucks, but that it’s evaluating opportunities to report on this in future. Daimler AG, which wants a completely CO2 neutral truck fleet in key markets by 2039, plans to start disclosing Scope 3 emissions for trucks in its next sustainability report.(1) You know something’s up when it takes a hedge fund to tell a company to clean up its act. The shortcomings in aircraft maker Airbus SE’s Scope 3 emissions reporting were highlighted in a critical letter late last year from Chris Hohn’s TCI Fund Management, the world’s most profitable activist fund. Airbus and rival Boeing have committed to halving the aviation industry’s net emissions by 2050. It would help focus minds on that urgent task if they fully accounted for their own role in flight pollution.(2) If Shell can do it, why not them?(1) Like other truck manufacturers, VW doesn't report Scope 3 emissions for heavy trucks but made the estimate based on its market share andthe truck sector's contribution to global emissions (plus its carbon footprint from cars)(2) It already does so for cars.(3) Boeing's environment reportonly counts Scope 3 emissions from business travel. Airbus has urged the aviation sector to develop a common methodology for Scope 3 emissions to aid consistency in reporting.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Cummins (CMI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Despite macro-economic and industrial challenges for the Auto Sector, these five stocks are poised to beat estimates this earnings season.
Johnson Controls' (JCI) Q1 performance expected to have benefited from strong growth in HVAC equipment despite dismal economic growth is Europe and China.
Workers' approval of a possible divestment of Volkswagen's transmissions making unit Renk and MAN Energy Solutions depends on who the new owner will be, the carmaker's labour chief said on Friday. "If there is a decent buyer, if there is a fit, the labour representatives in the supervisory board will not oppose a sale," Bernd Osterloh, head of Volkswagen's works council, said, not elaborating further. Sources told Reuters last month that MAN Energy Solutions, which makes diesel engines for ships and power generators, had attracted bids from Europe's Innio, Japan's Mitsubishi Heavy and U.S.-based Cummins.
Cummins (NYSE: CMI) is well known for its commercial engines, which remain a popular choice for many drivers. Zonar has now introduced an over-the-air update option for those with Cummins engines. The Zonar OTAir provides remote software updates for Cummins-powered vehicles through an easy-to-use app.