Cummins (CMI)

Key Statistics

EV/EBIT = 13.66x

ROE = 23.2%

Debt/Equity = 54%

FCF Yield = 5.23%

Dividend Yield = 2.97%

Market Cap = $26.83 billion

The Company

Cummins (CMI) is a 103-year-old global manufacturer of engines, power generators, fuel systems, emissions systems, and trucks. They also service all of these products.

Currently, CMI is the world’s top supplier of truck engines. Their reputation as a manufacturer of top quality and durable products has been forged through its long, century-long history. Over time, they have gained market share and are now the dominant player in the industry. Diesel truck engines are the company’s signature product.

However, while CMI is known for diesel engines, the business is much more diversified than that.

Engine sales make up 33% of revenue. Engines are supplied for heavy duty trucks (including both natural gas & diesel engines), medium duty trucks & buses, light duty automotive (pick up trust, light commercial vehicles), and off highway vehicles.

Distribution makes up 26% of revenue. Distribution includes engine and power generation distribution as well as service & parts.