Cummins Inc. (CMI) exhibits 25.3% gross margins and 17.5% return on invested capital within Industrials (Industrial Machinery/Components), balanced against a 15.2x enterprise multiple and 7.1% implied options volatility.
Sustained 25.3% gross profitability converts into 12.0% operating margin and 17.5% ROIC, outpacing sector cost of capital.
ROIC: 17.5% // GM: 25.3%YoY revenue trajectory of -1.3% paired with 3.35% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -1.3% // FCF YLD: 3.35%Altman Z-Score of 4.65 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 4.65 // F-SCORE: 6/9Trading at 22.7x trailing P/E (21.1x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 22.7x // EV/EBITDA: 15.2xOptions market prices a ±7.1% implied move with a 0.92 put/call ratio around $508.00 max pain.
IMPL MOVE: ±7.1% // P/C: 0.92Elevated industry capital intensity and customer concentration in Industrial Machinery/Components require continuous execution to defend 9.3% net margins.
NET MARGIN: 9.3% // D/E: 0.70x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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