Cummins recently experienced a modest price move of 0.08% downward over the last month, during which several critical events took place. One significant development was Accelera by Cummins entering a Memorandum of Understanding with GAIL to advance green hydrogen and zero-emissions technologies in India. Meanwhile, Cummins announced the release of its X10 mid-bore heavy-duty engine, slated for launch in 2027. The company's leadership saw changes with Bonnie Fetch's promotion and Shon Wright's appointment, adding another layer of corporate evolution. Concurrently, market turbulence influenced by U.S. tariffs affected broader indices, with the Dow and S&P 500 plummeting by 1.8% and Nasdaq by 1.5%, highlighting increased investor caution and global trade complexities. Despite these pressures, Cummins maintained relative stability in its total shareholder returns, a reflection of its strong corporate actions and resilience amid broader market declines.

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The last five years have seen Cummins achieve a remarkable total return of 190.07%, demonstrating a resilient performance against broader market challenges. This growth period witnessed Cummins consistently offering dividends, including an increase to $1.82 per share by late 2024. Furthermore, Cummins outperformed both the US Market's 13.1% return and the US Machinery industry’s 4.4% over the past year, reflecting its strong market position. The company's relatively low Price-To-Earnings Ratio of 12.4x, compared to the machinery industry average of 21.6x, highlights its strong value.

Key developments that likely impacted its long-term performance include impressive profit growth, as earnings surged this past year, and strategic alliances such as those with Liberty Energy and bp, facilitating growth in green hydrogen technologies. Moreover, the successful completion of the share buyback program, repurchasing 7.64 million shares at close to $1.78 billion, also likely contributed positively to shareholder value.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:CMI.

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