Cummins Inc. (CMI) – Expect better top line and profitability in FY23

Cummins Inc. (CMI) (Q1FY23)

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.

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.

The company 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.

Cummins also offers filtration, after treatment, control systems, air handling systems, automated transmissions, electric power generation systems, and batteries. The company sells its products to original equipment manufacturers, distributors, dealers, and other customers.

Highlights

Accelera and Blue Bird announced that they will be increasing the production of electric
school buses. This will more than double the zero emission school buses that CMI has collectively put into operation over the next 12 to 18 months. This will also boost the top line going forward.

Stock performance

Over the past 3 years, Cummins generated returns of 38% where the stock price surged from $173.07 in Jun 29, 2020 to $239.62 in Jun 27, 2023. The stock had a 200-Day Moving Average of $233.97 and a 50-Day Moving Average of $224.97.

In the past 1 year, CMI delivered returns of 23% where the stock price increased from $194.08 in Jul 05, 2022 to $239.62 in Jun 27,2023. The stock had a 52 Week High of $261.91 and a 52 Week Low of $187.92.

Over the past 3 months, CMI generated returns of 3% where the stock price increased from $232.71 in Mar 29, 2023 to $239.62 in Jun 27, 2023.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 36

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