Cummins Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Cummins Inc.	735)	2,151)	2,131)	1,789)	2,260)
Net income attributable to noncontrolling interests	105)	32)	33)	22)	8)
Net noncash charges	708)	784)	451)	546)	944)
Changes in current assets and liabilities, net of acquisitions	2,418)	(1,005)	(359)	365)	(31)
Net cash provided by operating activities	3,966)	1,962)	2,256)	2,722)	3,181)
Capital expenditures	(1,213)	(916)	(734)	(528)	(700)
Proceeds from borrowings	861)	2,103)	79)	2,014)	11)
Net borrowings (payments) of commercial paper	(779)	2,261)	(10)	(337)	(120)
Payments on borrowings and finance lease obligations	(1,136)	(1,550)	(73)	(73)	(96)
Free cash flow to equity (FCFE)	1,699)	3,860)	1,518)	3,798)	2,276)

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).

Download chart

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Cummins Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Cummins Inc. FCFE increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Cummins Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	141,856,847
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,699)
FCFE per share	11.98
Current share price (P)	291.14
Valuation Ratio
P/FCFE	24.31
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Caterpillar Inc.	15.35
Eaton Corp. plc	37.76
General Electric Co.	269.26
Honeywell International Inc.	25.57
Lockheed Martin Corp.	13.68
RTX Corp.	7.76
P/FCFE, Sector
Capital Goods	21.31
P/FCFE, Industry
Industrials	23.06

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Cummins Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
No. shares of common stock outstanding¹	141,856,847	141,375,256	142,426,735	147,657,584	150,269,665
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,699)	3,860)	1,518)	3,798)	2,276)
FCFE per share³	11.98	27.30	10.66	25.72	15.15
Share price^1, 4	256.85	248.41	223.51	245.11	164.30
Valuation Ratio
P/FCFE⁵	21.45	9.10	20.97	9.53	10.85
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	—	120.43	—	6.78	19.60
Caterpillar Inc.	14.39	24.03	16.36	25.22	11.07
Eaton Corp. plc	33.65	28.68	24.43	25.59	11.12
General Electric Co.	225.15	44.45	—	—	—
Honeywell International Inc.	26.10	27.59	46.23	12.59	21.75
Lockheed Martin Corp.	13.13	11.63	14.65	15.57	28.62
RTX Corp.	7.05	26.71	35.07	—	28.09
P/FCFE, Sector
Capital Goods	20.30	24.08	—	56.46	26.31
P/FCFE, Industry
Industrials	22.78	22.81	—	43.78	27.50

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,699,000,000 ÷ 141,856,847 = 11.98

⁴ Closing price as at the filing date of Cummins Inc. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 256.85 ÷ 11.98 = 21.45

⁶ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Cummins Inc. P/FCFE ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Cummins Inc. (NYSE:CMI)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical