Uniform Accounting for CMI shows that investors may not realize how poor earnings actually are and the recent stock run was not warranted

• CMI’s EPS’ was not $2.36, it was actually $1.49 in Q1, and earnings shrunk by 18% year over year, contrary to as-reported metrics which show a 16% growth rate

• After making the appropriate UAFRS adjustments, CMI is trading at a 25.6x P/E, not an 18.6x P/E, and a 2.5x-3.0x PEG, suggesting EPS’ growth does not support currently aggressive valuations

• CMI’s profitability is materially distorted by accounting for R&D and depreciation

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Submitted May 30, 2017 at 09:32PM by Valens_Research http://ift.tt/2rieIWn