CUMMINS INC Reports 31.2% Increase in Revenue for Q2 FY2023, Totaling USD 8638.0 Million
August 13, 2023
☀️Earnings Overview
CUMMINS INC ($NYSE:CMI) reported total revenue of USD 8638.0 million for the second quarter of FY2023, a 31.2% increase from the same period of the prior year. Net income also rose 2.6% year-over-year to USD 720.0 million on June 30 2023.
Analysis
GoodWhale conducted an in-depth analysis of CUMMINS INC‘s wellbeing, and according to Star Chart CUMMINS INC was classified as a ‘gorilla’. This type of company is characterized by having achieved stable and high revenue or earning growth due to its strong competitive advantage. As such, CUMMINS INC is likely to be attractive to a variety of investors. CUMMINS INC is strong in dividend, growth, profitability, and medium in asset, indicating that it has the potential to generate great returns. Moreover, CUMMINS INC has a high health score of 8/10 with regard to its cashflows and debt, meaning it is capable of sustaining future operations even in times of crisis. This makes CUMMINS INC an especially appealing stock to consider. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cummins Inc. More…
| Total Revenues | Net Income | Net Margin |
| 32.19k | 2.54k | 7.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cummins Inc. More…
| Operations | Investing | Financing |
| 2.18k | -4.2k | 1.46k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cummins Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 31.73k | 20.38k | 73.02 |
Key Ratios Snapshot
Some of the financial key ratios for Cummins Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.8% | 19.2% | 11.5% |
| FCF Margin | ROE | ROA |
| 3.5% | 23.2% | 7.3% |
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.
– Parker Hannifin Corp ($NYSE:PH)
Parker Hannifin Corporation is an American corporation that specializes in motion and control technologies. Parker Hannifin is the world’s largest producer of hydraulic pumps and motors, and it is a major manufacturer of pneumatic cylinders, valves, and other motion-control products. The company has over 60,000 employees in 50 countries, and its products are used in a variety of industries, including aerospace, climate control, electromechanical, filtration, fluid and gas handling, hydraulics, pneumatics, process control, and sealing and shielding.
– Greenland Technologies Holding Corp ($NASDAQ:GTEC)
Greenland Technologies Holding Corp is a leading manufacturer of electronic products and components. The company has a market cap of 26.29M as of 2022 and a return on equity of 8.97%. Greenland Technologies Holding Corp designs, manufactures and sells a broad range of electronic products and components, including semiconductors, printed circuit boards, personal computers, cellphone handsets, digital cameras, and other consumer electronics products.
– Hydraulic Elements and Systems AD ($LTS:0NZ4)
AD is a diversified industrial company that operates in a variety of businesses, including Hydraulic Elements and Systems, Fluid Power, and Filtration. The company has a market cap of 122.81M as of 2022 and a Return on Equity of 13.72%. AD’s Hydraulic Elements and Systems business provides a wide range of products and services to a variety of industries, including construction, mining, and agricultural equipment. The company’s Fluid Power business provides hydraulic and pneumatic components and systems to a variety of industries, including the automotive, aerospace, and defense sectors. The company’s Filtration business provides filtration products and services to a variety of industries, including the food and beverage, pharmaceutical, and oil and gas industries.
Summary
Investors were disappointed with the latest earnings report from Cummins Inc. on June 30th, 2023, as total revenue was only up 31.2% year-over-year, although net income increased 2.6%. This resulted in a stock price drop on the same day. Although it may not seem like a dramatic drop, investors should remain cautious with their investments in Cummins Inc. and any associated risks. Analysts suggest keeping an eye on the company’s fundamentals and future outlook before taking any decisive action.
Additionally, investors should consider diversifying their portfolios in order to mitigate any associated risks.
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