Price to Earnings (P/E)
since 2005
Calculation
Cummins Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to Cummins Inc.1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 12, 2024 | 49.57 | = | 256.85 | ÷ | 5.18 | 5.18 | = | 735 | ÷ | 141,856,847 | |
| Feb 14, 2023 | 16.33 | = | 248.41 | ÷ | 15.21 | 15.21 | = | 2,151 | ÷ | 141,375,256 | |
| Feb 8, 2022 | 14.94 | = | 223.51 | ÷ | 14.96 | 14.96 | = | 2,131 | ÷ | 142,426,735 | |
| Feb 10, 2021 | 20.23 | = | 245.11 | ÷ | 12.12 | 12.12 | = | 1,789 | ÷ | 147,657,584 | |
| Feb 11, 2020 | 10.92 | = | 164.30 | ÷ | 15.04 | 15.04 | = | 2,260 | ÷ | 150,269,665 | |
| Feb 11, 2019 | 10.89 | = | 148.18 | ÷ | 13.61 | 13.61 | = | 2,141 | ÷ | 157,338,874 | |
| Feb 14, 2018 | 27.53 | = | 166.00 | ÷ | 6.03 | 6.03 | = | 999 | ÷ | 165,683,334 | |
| Feb 13, 2017 | 18.44 | = | 152.85 | ÷ | 8.29 | 8.29 | = | 1,394 | ÷ | 168,155,330 | |
| Feb 12, 2016 | 12.09 | = | 97.01 | ÷ | 8.03 | 8.03 | = | 1,399 | ÷ | 174,320,797 | |
| Feb 17, 2015 | 15.32 | = | 138.98 | ÷ | 9.07 | 9.07 | = | 1,651 | ÷ | 181,945,783 | |
| Feb 18, 2014 | 18.01 | = | 143.10 | ÷ | 7.94 | 7.94 | = | 1,483 | ÷ | 186,682,826 | |
| Feb 20, 2013 | 13.25 | = | 114.83 | ÷ | 8.66 | 8.66 | = | 1,645 | ÷ | 189,844,829 | |
| Feb 21, 2012 | 12.81 | = | 123.30 | ÷ | 9.63 | 9.63 | = | 1,848 | ÷ | 191,927,547 | |
| Feb 24, 2011 | 19.19 | = | 100.87 | ÷ | 5.26 | 5.26 | = | 1,040 | ÷ | 197,847,368 | |
| Feb 26, 2010 | 26.71 | = | 56.78 | ÷ | 2.13 | 2.13 | = | 428 | ÷ | 201,359,036 | |
| Feb 27, 2009 | 5.55 | = | 20.80 | ÷ | 3.75 | 3.75 | = | 755 | ÷ | 201,352,073 | |
| Feb 26, 2008 | 14.61 | = | 53.40 | ÷ | 3.65 | 3.65 | = | 739 | ÷ | 202,192,548 | |
| Feb 27, 2007 | 9.92 | = | 34.04 | ÷ | 3.43 | 3.43 | = | 715 | ÷ | 208,398,444 | |
| Feb 28, 2006 | 9.15 | = | 27.07 | ÷ | 2.96 | 2.96 | = | 550 | ÷ | 185,823,756 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Cummins Inc. Annual Report.
- Share Price
- The share price exhibited significant volatility over the analyzed period. Initial growth occurred from approximately $27 in 2006 to a peak exceeding $123 in 2012, followed by fluctuations with a decline around 2016, where the price dropped below $100. Subsequently, the share price experienced a strong upward trend reaching a high near $256 by early 2024. This pattern suggests periods of rapid appreciation, intermittent corrections, and overall long-term appreciation in shareholder value.
- Earnings per Share (EPS)
- EPS values showed notable fluctuations throughout the timeframe. Starting near $3.00 in 2006, the EPS increased steadily to almost $10 in 2012, indicating improving profitability. From 2012 to around 2018, EPS declined somewhat, then surged to a peak of about $15 in 2019 and 2023, reflecting strong earnings performance. However, the most recent year showed a sharp decrease to approximately $5.18, suggesting a significant drop in earnings or potential impact from extraordinary circumstances during that period.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio demonstrated considerable variability, reflecting changes in market valuation relative to earnings. Early values were moderate, ranging around 9 to 14 until 2008, followed by a drop in 2009 indicating undervaluation or higher earnings relative to price. Through 2010 to 2018, the ratio fluctuated considerably, peaking above 27 around 2018, which may indicate market optimism or overvaluation. Subsequently, the ratio declined before surging to nearly 50 in 2024, a historically high level, likely driven by the sharp decline in earnings rather than a proportionate share price increase.
- Overall Trends and Insights
- The data reveals periods of growth and volatility in both market valuation and earnings. The rising share price trend aligns with profitability improvements until recent years. The sharp discrepancy between the high P/E ratio in 2024 and the low EPS indicates investor expectations may have remained high despite the dip in earnings, or potential market speculation. This disparity warrants further investigation into underlying operational or external factors affecting performance in the latest period.
Comparison to Competitors
Cummins Inc., P/E, long-term trends, comparison to competitors
| Cummins Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 12, 2024 | 49.57 | — | 15.55 | 35.88 | 16.18 | 22.73 | 15.35 | 38.31 |
| Feb 14, 2023 | 16.33 | — | 19.15 | 27.93 | — | 26.97 | 20.48 | 27.59 |
| Feb 8, 2022 | 14.94 | — | 16.82 | 27.77 | — | 23.14 | 16.70 | 36.79 |
| Feb 10, 2021 | 20.23 | — | 36.80 | 37.46 | 19.67 | 29.63 | 13.44 | — |
| Feb 11, 2020 | 10.92 | — | 12.36 | 18.06 | — | 20.97 | 19.87 | 24.41 |
| Feb 11, 2019 | 10.89 | 21.87 | 12.42 | 15.92 | — | 16.02 | 16.88 | 19.74 |
| Feb 14, 2018 | 27.53 | 24.68 | 126.80 | 11.90 | — | 67.20 | 48.70 | 21.97 |
| Feb 13, 2017 | 18.44 | 20.50 | — | 16.96 | 32.22 | 19.29 | 14.14 | 17.55 |
| Feb 12, 2016 | 12.09 | 14.89 | 18.07 | 13.17 | — | 16.70 | 18.36 | 9.31 |
| Feb 17, 2015 | 15.32 | 19.15 | 14.01 | 18.73 | 17.17 | 19.27 | 16.86 | 17.52 |
| Feb 18, 2014 | 18.01 | 21.10 | 16.25 | 19.35 | 19.59 | 18.91 | 17.56 | 17.51 |
| Feb 20, 2013 | 13.25 | 14.71 | 11.02 | 23.99 | 17.57 | 18.78 | 10.34 | 16.07 |
| Feb 21, 2012 | 12.81 | 14.09 | 15.11 | 12.83 | 15.52 | 22.54 | 10.81 | 15.29 |
| Feb 24, 2011 | 19.19 | 16.17 | 24.14 | 19.59 | 19.49 | 22.48 | 9.58 | 17.84 |
| Feb 26, 2010 | 26.71 | 33.40 | 40.66 | 29.60 | 16.09 | 13.44 | 9.56 | 16.33 |
| Feb 27, 2009 | 5.55 | 11.63 | 4.51 | 5.65 | 6.62 | 8.71 | 8.47 | 9.57 |
| Feb 26, 2008 | 14.61 | 15.99 | 12.54 | 11.89 | 15.45 | 17.07 | 14.15 | 16.61 |
| Feb 27, 2007 | 9.92 | 32.40 | 12.28 | 12.47 | 17.11 | 18.37 | 16.95 | 18.16 |
| Feb 28, 2006 | 9.15 | 22.62 | 17.17 | 12.82 | 21.07 | 20.71 | 17.45 | 18.76 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Cummins Inc., P/E, long-term trends, comparison to sector (capital goods)
| Cummins Inc. | Capital Goods | |
|---|---|---|
| Feb 12, 2024 | 49.57 | 25.10 |
| Feb 14, 2023 | 16.33 | 40.21 |
| Feb 8, 2022 | 14.94 | 57.31 |
| Feb 10, 2021 | 20.23 | 123.55 |
| Feb 11, 2020 | 10.92 | 39.03 |
| Feb 11, 2019 | 10.89 | 56.00 |
| Feb 14, 2018 | 27.53 | 55.16 |
| Feb 13, 2017 | 18.44 | 23.62 |
| Feb 12, 2016 | 12.09 | 33.10 |
| Feb 17, 2015 | 15.32 | 17.47 |
| Feb 18, 2014 | 18.01 | 18.85 |
| Feb 20, 2013 | 13.25 | 15.74 |
| Feb 21, 2012 | 12.81 | 15.20 |
| Feb 24, 2011 | 19.19 | 18.46 |
| Feb 26, 2010 | 26.71 | 17.22 |
| Feb 27, 2009 | 5.55 | 7.48 |
| Feb 26, 2008 | 14.61 | 15.28 |
| Feb 27, 2007 | 9.92 | 17.63 |
| Feb 28, 2006 | 9.15 | 20.11 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Cummins Inc., P/E, long-term trends, comparison to industry (industrials)
| Cummins Inc. | Industrials | |
|---|---|---|
| Feb 12, 2024 | 49.57 | 24.85 |
| Feb 14, 2023 | 16.33 | 36.06 |
| Feb 8, 2022 | 14.94 | 35.59 |
| Feb 10, 2021 | 20.23 | — |
| Feb 11, 2020 | 10.92 | 43.95 |
| Feb 11, 2019 | 10.89 | 33.70 |
| Feb 14, 2018 | 27.53 | 29.83 |
| Feb 13, 2017 | 18.44 | 22.92 |
| Feb 12, 2016 | 12.09 | 22.89 |
| Feb 17, 2015 | 15.32 | 18.79 |
| Feb 18, 2014 | 18.01 | 19.13 |
| Feb 20, 2013 | 13.25 | 17.77 |
| Feb 21, 2012 | 12.81 | 15.75 |
| Feb 24, 2011 | 19.19 | 18.72 |
| Feb 26, 2010 | 26.71 | 19.17 |
| Feb 27, 2009 | 5.55 | 9.73 |
| Feb 26, 2008 | 14.61 | 16.93 |
| Feb 27, 2007 | 9.92 | 11.65 |
| Feb 28, 2006 | 9.15 | 50.62 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).