Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Cummins Inc. (0I58.L)

Company Dividend Discount ModelIndustry: Industrial - Capital GoodsSector: Industrials

Valuation Snapshot

Stable Growth$884.01 - $3,799.88$2,160.90
Multi-Stage$556.85 - $609.94$582.90
Blended Fair Value$1,371.90
Current Price$417.79
Upside228.37%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.95%6.59%7.006.656.185.845.655.505.195.064.884.49
YoY Growth--5.21%7.72%5.69%3.45%2.76%5.99%2.43%3.70%8.68%21.48%
Dividend Yield--2.28%2.26%2.60%2.80%2.16%4.18%3.20%3.19%3.26%3.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,668.00
(-) Cash Dividends Paid (M)1,028.00
(=) Cash Retained (M)1,640.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)533.60333.50200.10
Cash Retained (M)1,640.001,640.001,640.00
(-) Cash Required (M)-533.60-333.50-200.10
(=) Excess Retained (M)1,106.401,306.501,439.90
(/) Shares Outstanding (M)138.45138.45138.45
(=) Excess Retained per Share7.999.4410.40
LTM Dividend per Share7.437.437.43
(+) Excess Retained per Share7.999.4410.40
(=) Adjusted Dividend15.4216.8617.83
WACC / Discount Rate6.41%6.41%6.41%
Growth Rate4.59%5.59%6.59%
Fair Value$884.01$2,160.90$3,799.88
Upside / Downside111.59%417.22%809.52%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,668.002,817.072,974.473,140.663,316.143,501.423,606.46
Payout Ratio38.53%48.82%59.12%69.41%79.71%90.00%92.50%
Projected Dividends (M)1,028.001,375.421,758.462,180.002,643.163,151.283,335.98

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.41%6.41%6.41%
Growth Rate4.59%5.59%6.59%
Year 1 PV (M)1,280.311,292.551,304.80
Year 2 PV (M)1,523.671,552.951,582.50
Year 3 PV (M)1,758.321,809.241,861.13
Year 4 PV (M)1,984.472,061.462,140.67
Year 5 PV (M)2,202.352,309.672,421.13
PV of Terminal Value (M)68,346.6371,677.1675,136.28
Equity Value (M)77,095.7580,703.0384,446.51
Shares Outstanding (M)138.45138.45138.45
Fair Value$556.85$582.90$609.94
Upside / Downside33.28%39.52%45.99%

High-Yield Dividend Screener

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