ac investment research

Should I Buy NYSE:CMI Stock? (22% Forecasted Return) | CMI Cummins Inc. Stock Forecast



Our liquidity uses include dividends and share repurchases that we expect under a stress scenario. Unlike other potential uses of liquidity, such as debt maturities or maintenance capital spending, we view dividends and share repurchases as more discretionary, although more so for the latter. For this reason, when evaluating a company's liquidity position, we may use a lower estimate of dividends and shareholder repurchases than in our base-case forecast based on our views of management and the company's track record in terms of shareholder returns and maintaining a certain minimum level of liquidity.Likewise, we do not consider factoring programs under sources of liquidity. Unlike asset-based lending (ABL) facilities, factoring is more of a sales transaction and not a loan. In addition, these transactions tend to be very short term. For this reason, we would not consider them a committed source of future liquidity over a 12-month period. We estimate CMI Cummins Inc. stock forecast parameters by: RC Phase Shift Oscillator with Multiple Regression because of at least one of the following applies: shareholders are supportive of strong capital, with lower expectations for dividends and share buybacks; the firm has concrete commitments from outside parties to provide it with material amounts of loss-absorbing capital that practically can be exercised while still a going concern; or the firm is at least adequately capitalized and a committed strong financial partner or backer bolsters financial flexibility (22% Forecasted Return)

NYSE:CMI Stock Forecast (Buy or Sell) as of 23 Jun 2022 for (n+8 weeks)

Stock: CMI Cummins Inc.

Time series to forecast n: 23 Jun 2022 for (n+8 weeks)

x axis:Likelihood %
y axis:Potential Impact %
z axis:Color (yellow to green) Technical Analysis %

Stock Forecast Criteria and Models for CMI Cummins Inc.

  • We establish a floor RAC charge of zero for each equities group to ensure that unrealized gains cannot lower the risk weight below zero.
  • Hybrids issued by operating subsidiaries that cannot benefit the wider group in this way are treated as having no equity content in our group consolidated analysis. If, however, they can absorb losses or conserve cash at the issuer level, they are eligible for equity content in our analysis of the operating subsidiary on a stand-alone basis.
  • In RACF, we take into account the insurance subsidiaries' credit and operational risks through the treatment of the investment amount and the assessment of capitalization. Therefore, for banks that Basel II does not apply to, where we typically use primarily accounting data for calculating RAC ratios, we exclude the relevant assets (stocks, bonds, etc.) and AUM held by insurance subsidiaries from the assets and AUM reported in consolidated financial accounts we use as disclosure for the calculation of the RAC ratio.
  • We do not make adjustments for the impact of foreign exchange translation gains or losses recorded within equity and included under other comprehensive income under U.S. generally accepted accounting principles (GAAP). These gains or losses are reflected in ACE and TAC.
  • The replacement issuance does not, in our view, materially weaken the creditworthiness of the issuer, including that it will not cause a lowering of the long-term credit rating or cause a downward revision to the outlook on the long-term credit rating.
  • Derivatives receivables represent more than 3% of total assets for entities reporting under IFRS (or under local GAAP similar to IFRS for the accounting of derivatives) and are domiciled in countries for which our BICRA group is '1' to '4'.
  • Residual time to the effective maturity date of at least 15 years if the SACP is 'bbb–' or higher; or at least 10 years if the bank's SACP is 'bb+' or lower. We use the ICR as a reference point if the issuer is an NOHC

Assumptions Underlying The Forecast Model for CMI Cummins Inc.

When calculating sources of liquidity, we only include the undrawn, available portion of committed bank lines maturing beyond the specified time horizon for each liquidity descriptor. For example, when assessing liquidity as adequate, we only include a committed revolving credit facility as a source if it matured beyond the next 12 months. Similarly, given that our liquidity assessment looks out over two years when assessing liquidity as strong or exceptional, we only include a facility maturing beyond 24 months as a source of liquidity.

Frequently Asked QuestionsQ: Is CMI Cummins Inc. stock buy or sell?
A: Our liquidity uses include dividends and share repurchases that we expect under a stress scenario. Unlike other potential uses of liquidity, such as debt maturities or maintenance capital spending, we view dividends and share repurchases as more discretionary, although more so for the latter. For this reason, when evaluating a company's liquidity position, we may use a lower estimate of dividends and shareholder repurchases than in our base-case forecast based on our views of management and the company's track record in terms of shareholder returns and maintaining a certain minimum level of liquidity.
Q: Is CMI Cummins Inc. stock expected to go up?
A: Likewise, we do not consider factoring programs under sources of liquidity. Unlike asset-based lending (ABL) facilities, factoring is more of a sales transaction and not a loan. In addition, these transactions tend to be very short term. For this reason, we would not consider them a committed source of future liquidity over a 12-month period.
Q: What is the forecast for CMI Cummins Inc. ?
A: When calculating sources of liquidity, we only include the undrawn, available portion of committed bank lines maturing beyond the specified time horizon for each liquidity descriptor. For example, when assessing liquidity as adequate, we only include a committed revolving credit facility as a source if it matured beyond the next 12 months. Similarly, given that our liquidity assessment looks out over two years when assessing liquidity as strong or exceptional, we only include a facility maturing beyond 24 months as a source of liquidity.
Q: What is the consensus rating of CMI Cummins Inc. ?
A: The consensus rating for CMI Cummins Inc. is 90.
Q: What are the risks of investing CMI Cummins Inc. ?
A: We use risk analysis for CMI Cummins Inc. because of at least one of the following applies: shareholders are supportive of strong capital, with lower expectations for dividends and share buybacks; the firm has concrete commitments from outside parties to provide it with material amounts of loss-absorbing capital that practically can be exercised while still a going concern; or the firm is at least adequately capitalized and a committed strong financial partner or backer bolsters financial flexibility


CMI Cummins Inc.

People Also Ask







AC Investment Research

In our experiment, we focus on an approach known as Decision making using game theory. We apply principles from game theory to model the relationships between rating actions, news, market signals and decision making.

301 Massachusetts Avenue Cambridge, MA 02139 667-253-1000 pr@ademcetinkaya.com