Cummins Inc. (NYSE:CMI) runs in leading trade, it knocking up 2.40% to traded at $119.75. CMI attains analyst recommendation of 3.00 on scale of 1-5 with week’s performance of -5.00%.
To find out the technical position of CMI, it holds price to book ratio of 2.95 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 15.05, and price to earnings ratio calculated as 16.34. The price to earnings growth ration calculated as 26.36. CMI is presenting price to cash flow of 15.79 and free cash flow concluded as 25.17.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at -13.00%, and looking further price to next year’s EPS is -2.16%. While take a short look on price to sales ratio, that was 1.11 and price to earning ration of 16.34 attracting passive investors.
Energy Recovery, Inc. (NASDAQ:ERII) kept active in under and overvalue discussion, ERII holds price to book ratio of 12.36 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation.
Fundament Factor in Focus
Taking look on ratio analysis, ERII has forward price to earnings ratio of 45.89. The co is presenting price to cash flow as 7.55 and while calculating price to free cash flow it concluded at 9.21, the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
The firm has price volatility of 5.22% for a week and 3.53% for a month. Its beta stands at 4.08 times. Narrow down four to firm performance, its weekly performance was 12.09% and monthly performance was 7.10%.