Will Cummins Continue to Motor Higher?

E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio for Cummins is excellent. The balance sheet is also impressive. Cummins is stronger than Gardner Denver Inc. (NYSE:GDI) and SPX Corporation (NYSE:SPW) in both areas.

Debt-To-Equity

Cash

Long-Term Debt

CMI

.12

$1.27 Billion

$747.00 Million

GDI

.32

$248.93 Million

$331.76 Million

SPW

.93

$346.30 Million

$2.15 Billion

 

T = Technicals on the Stock Chart Are Strong

Cummins has performed extremely well over the past three years. Even the past year has shown healthy returns. Also keep in mind that Cummins has a higher yield than Gardner Denver Inc. Cummins has a yield of 1.90 percent, SPX Corporation has a yield of 1.50 percent, and Gardner Denver Inc. has a yield of .30 percent.  

1 Month

Year-To-Date

1 Year

3 Year

CMI

9.96%

24.89%

24.71%

141.00%

GDI

-1.26%

-12.26%

-12.92%

58.35%

SPW

-1.40%

10.76%

10.19%

22.80%

 

At $108.07, Cummins is currently trading above all its averages.   

50-Day SMA

98.58

100-Day SMA

97.95

200-Day SMA

101.02

 

E = Earnings and Revenue Have Been Impressive

Earnings and revenue have been improving since 2009.

2007

2008

2009

2010

2011

Revenue ($)in billions

13.05

14.34

10.80

13.23

18.05

Diluted EPS ($)

3.70

3.85

2.16

5.28

9.55

 

When we look at last quarter on a YoY basis, we see a decrease in revenue and earnings. However, Cummins has bounced back strong since then.

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

4.63

4.92

4.47

4.45

4.12

Diluted EPS ($)

2.35

2.85

2.38

2.47

1.86