Cummins India Limited
Cummins India Limited Fundamental Analysis
Cummins India Limited (CUMMINSIND.BO) shows moderate financial fundamentals with a PE ratio of 60.82, profit margin of 19.32%, and ROE of 29.91%. The company generates $116.0B in annual revenue with strong year-over-year growth of 15.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CUMMINSIND.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCUMMINSIND.BO demonstrates superior asset utilization.
Valuation Score
ModerateCUMMINSIND.BO shows balanced valuation metrics.
Growth Score
ExcellentCUMMINSIND.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCUMMINSIND.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateCUMMINSIND.BO maintains healthy but balanced margins.
Key Financial Metrics
Is CUMMINSIND.BO Expensive or Cheap?
P/E Ratio
CUMMINSIND.BO trades at 60.82 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CUMMINSIND.BO's PEG of -19.38 indicates potential undervaluation.
Price to Book
The market values Cummins India Limited at 17.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 52.77 times EBITDA. This signals the market has high growth expectations.
How Well Does CUMMINSIND.BO Make Money?
Net Profit Margin
For every $100 in sales, Cummins India Limited keeps $19.32 as profit after all expenses.
Operating Margin
Core operations generate 24.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.91 in profit for every $100 of shareholder equity.
ROA
Cummins India Limited generates $21.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cummins India Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Cummins India Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
CUMMINSIND.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-19.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
17.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.005
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.34
vs 25 benchmark
How CUMMINSIND.BO Stacks Against Its Sector Peers
| Metric | CUMMINSIND.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.82 | 26.71 | Worse (Expensive) |
| ROE | 29.91% | 1311.00% | Weak |
| Net Margin | 19.32% | -29317.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 3.16 | 10.53 | Strong Liquidity |
| ROA | 21.27% | -1537638.00% (disorted) | Strong |
CUMMINSIND.BO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cummins India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
100.19%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
183.48%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
237.70%
Industry Style: Cyclical, Value, Infrastructure
High Growth