Company Profile CMI
What Does This Company Do?
Indiana-based Cummins designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related products. The firm sells to original equipment manufacturers and distributors, including PACCAR and Daimler, through a network of 600 independent distribution centers and 6,500 dealer locations in more than 190 countries. Cummins employs 44,000 workers and generates annual revenue of $18 billion.
The result has cemented Cummins as one of the world's only fully integrated engine manufacturers. Today, Cummins constructs the critical components--those that drive fuel economy and emissions controls--in-house and outsources the non-value-added components. Aside from our estimate that its break-even level has fallen nearly 20%, this technological mastery is important for two main reasons.
First, the government regulations for emissions control and fuel economy that have crept into the developed nations will blanket the globe in the coming decade. This should benefit Cummins tremendously, since the per-engine dollar amount of content will increase at least 60% from current levels, and because these are sophisticated technologies, we expect the company can capture a greater proportion of the economic profits.
Last Price
$87.46
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| | 52-Week Range
79.53-129.51
| | Yield
1.83
| | Market Cap
17.1 bil
| | | | Volume
2.9 mil
| | Avg Vol.
2.9 mil
| | Forward P/E
7.9
| | P/B
2.8
| | P/S
0.9
| | P/CF
8.5
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