Cummins Inc Intrinsic Value – Cummins Acquires Parts of Faurecia’s Commercial Vehicle Exhaust Business for €142M

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Cummins Inc ($NYSE:CMI)., a global power leader in the design, manufacture, sale, and service of diesel and natural gas engines, has recently agreed to acquire certain assets of Faurecia’s Commercial Vehicle Exhaust business for €142M. It designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products. The company also provides other related services, such as fuel systems, air handling, filtration, emission solutions, and electrical power generation systems. The company’s acquisition of Faurecia’s Commercial Vehicle Exhaust business is expected to help Cummins expand its portfolio of products and increase its ability to serve its customers better. This acquisition will also provide Cummins with access to technology that will help it meet the increasing market demand for its products.

In addition, the acquisition is expected to boost Cummins’ efficiency by providing the company with access to Faurecia’s extensive manufacturing capabilities. Overall, the acquisition of certain assets of Faurecia’s Commercial Vehicle Exhaust business is expected to be beneficial for both Cummins and Faurecia. It will provide Cummins with access to advanced technology and improved efficiency while helping Faurecia expand its operations in other areas of the global automotive industry.

Share Price

This acquisition is expected to offer Cummins Inc. a foothold in the commercial vehicle exhaust market and improved access to Faurecia’s global customer base. The stock of Cummins Inc opened at $216.5 and closed at $216.0, down by 0.9% from previous closing price of 218.0. The acquisition of Faurecia’s exhaust business is expected to provide Cummins Inc with the additional manufacturing capabilities and technology to better serve its customers. It is also expected to provide Cummins Inc with new product offerings, improved access to new markets, and increased operational efficiency. Live Quote…

About the Company

Income Snapshot

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Balance Sheet Snapshot

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Analysis – Cummins Inc Intrinsic Value

At GoodWhale, we’ve conducted an analysis of CUMMINS INC’s financials. The results of our analysis showed that the intrinsic value of a CUMMINS INC share is around $289.8, as calculated by our proprietary Valuation Line. Currently, CUMMINS INC stock is traded at $216.0, which is 25.5% lower than its intrinsic value. This indicates that CUMMINS INC is currently undervalued and presents a potential buying opportunity for investors. More…

Peers

Cummins Inc is one of the world’s leading manufacturers of engines and related technologies. The company’s products are used in a wide range of applications, including on-highway trucks, construction equipment, power generation, and marine. Cummins Inc has a strong competitive position in the markets it serves, and is constantly striving to improve its products and technologies to maintain this position. The company’s main competitors are Parker Hannifin Corp, Greenland Technologies Holding Corp, Hydraulic Elements and Systems AD.

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Summary

Cummins Inc. recently announced the acquisition of parts of Faurecia’s Commercial Vehicle Exhaust business for €142M. This move is a strategic step for Cummins to further strengthen its position in the global commercial vehicle exhaust industry. Cummins expects that the acquisition will add to its revenue and profit, increase its market share and provide access to new markets and customers. It is also anticipated that this deal will accelerate Cummins’ ability to develop and introduce new exhaust solutions for their commercial vehicle clients, while building on their existing expertise in the industry.

The investment is expected to be accretive to Cummins’ earnings in the near term. With the acquisition, Cummins’ portfolio of exhaust solutions is strengthened and it remains well-positioned in the commercial vehicle industry.