Where Cummins Stands With Analysts
During the last three months, 14 analysts shared their evaluations of Cummins (NYSE:CMI), revealing diverse outlooks from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 4 | 5 | 0 | 1 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 1 | 1 | 0 | 0 |
| 2M Ago | 2 | 1 | 3 | 0 | 1 |
| 3M Ago | 1 | 1 | 1 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $349.0, a high estimate of $451.00, and a low estimate of $240.00. A decline of 11.1% from the prior average price target is evident in the current average.
Analyzing Analyst Ratings: A Detailed Breakdown
A clear picture of Cummins's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| David Raso | Evercore ISI Group | Lowers | Outperform | $419.00 | $451.00 |
| Kyle Menges | Citigroup | Raises | Buy | $350.00 | $320.00 |
| Angel Castillo | Morgan Stanley | Raises | Overweight | $350.00 | $340.00 |
| Tami Zakaria | JP Morgan | Raises | Neutral | $320.00 | $308.00 |
| Angel Castillo | Morgan Stanley | Lowers | Overweight | $340.00 | $425.00 |
| David Leiker | Baird | Lowers | Neutral | $315.00 | $407.00 |
| Tami Zakaria | JP Morgan | Lowers | Neutral | $308.00 | $375.00 |
| Kyle Menges | Citigroup | Lowers | Buy | $320.00 | $360.00 |
| Jamie Cook | Truist Securities | Lowers | Hold | $338.00 | $420.00 |
| Steven Fisher | UBS | Lowers | Sell | $240.00 | $400.00 |
| Kyle Menges | Citigroup | Lowers | Buy | $360.00 | $430.00 |
| Steven Fisher | UBS | Lowers | Buy | $400.00 | $432.00 |
| Tami Zakaria | JP Morgan | Lowers | Neutral | $375.00 | $420.00 |
| David Raso | Evercore ISI Group | Raises | Outperform | $451.00 | $408.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Cummins. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cummins compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Cummins's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Cummins's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Cummins analyst ratings.
Unveiling the Story Behind Cummins
Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of world. Much of Cummins' foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins' business model is unique as it competes with many of its heavy-duty truck manufacturer customers, who also make their own engines.
Unraveling the Financial Story of Cummins
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Negative Revenue Trend: Examining Cummins's financials over 3M reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -2.73% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Net Margin: Cummins's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 10.08%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 7.78%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Cummins's ROA stands out, surpassing industry averages. With an impressive ROA of 2.57%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.74, Cummins adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Significance of Analyst Ratings Explained
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.