CMI Stock Analysis — Cummins
Sector: Industrials
AI Verdict
Cummins trades at 22.1x next year's earnings for 55.0% expected EPS growth, which is cheap for the growth you're getting if their OEM partnerships and service moat hold up during the energy transition.
Competitive Moat
Cummins designs and manufactures diesel and alternative fuel engines, power generation systems, and related components, with a moat built on decades of OEM relationships and a global service network that competitors struggle to replicate. Their scale and integration into customers' supply chains create high switching costs, especially as they invest in electrification and hydrogen technologies.
Summary
Cummins is drawing attention for a forecasted 55.0% jump in earnings next year while trading at 22.1x forward earnings.
Where It Stands
Shares are up 99.59% over the past year, the RSI of 41.9 signals cooling momentum, and the stock trades at 22.1x next year's earnings versus a 20x sector median.
Key Metrics
- RSI: 41.9 — Neutral
- Trailing P/E: 34.3x
- Forward P/E: 22.1x
- PEG Ratio: 0.62
- Earnings Growth: +0.5%
- Revenue Growth: +0.0%
- Market Cap: $91.1B
- Dividend Yield: 0.01%
- 1-Year Return: 99.59%
- 52-Week High: $737.76
- 52-Week Low: $325.25
Analyst Consensus
18 Buy · 10 Hold · 0 Sell (28 analysts)
Bull Case
With analysts expecting 55.0% EPS growth and a forward P/E of 22.1x, you're paying a typical industrials multiple for outsized earnings acceleration.
Bear Case
If the forward P/E reverts to the sector median of 20x, that implies a 10% downside from current levels even before considering the RSI's cooling signal at 41.9.
Catalyst to Watch
Watch for updates on Cummins' electrification and hydrogen engine adoption rates—faster uptake could justify the premium multiple.