CUMMINS INC (CMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMI - US2310211063 - Common Stock
565.8 USD
-13.14 (-2.27%)
565.8 USD
0 (0%)
Overall CMI gets a fundamental rating of 5 out of 10. We evaluated CMI against 132 industry peers in the Machinery industry. While CMI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CMI is valied quite expensively at the moment, while it does show a decent growth rate. Finally CMI also has an excellent dividend rating. With these ratings, CMI could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- In the past year CMI was profitable.
- CMI had a positive operating cash flow in the past year.
- CMI had positive earnings in each of the past 5 years.
- Each year in the past 5 years CMI had a positive operating cash flow.
1.2 Ratios
- CMI has a better Return On Assets (7.93%) than 74.24% of its industry peers.
- Looking at the Return On Equity, with a value of 22.12%, CMI belongs to the top of the industry, outperforming 90.15% of the companies in the same industry.
- CMI's Return On Invested Capital of 10.92% is fine compared to the rest of the industry. CMI outperforms 75.76% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CMI is in line with the industry average of 10.24%.
- The last Return On Invested Capital (10.92%) for CMI is above the 3 year average (10.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 22.12% | ||
| ROIC | 10.92% |
ROA(3y)7.3%
ROA(5y)7.76%
ROE(3y)23.56%
ROE(5y)23.61%
ROIC(3y)10.13%
ROIC(5y)9.3%
1.3 Margins
- With a decent Profit Margin value of 7.94%, CMI is doing good in the industry, outperforming 65.91% of the companies in the same industry.
- CMI's Profit Margin has improved in the last couple of years.
- CMI has a better Operating Margin (12.01%) than 61.36% of its industry peers.
- CMI's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 25.94%, CMI is doing worse than 62.12% of the companies in the same industry.
- In the last couple of years the Gross Margin of CMI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.01% | ||
| PM (TTM) | 7.94% | ||
| GM | 25.94% |
OM growth 3Y5.37%
OM growth 5Y0.23%
PM growth 3Y9.26%
PM growth 5Y3.83%
GM growth 3Y1.89%
GM growth 5Y-0.23%
2. Health
2.1 Basic Checks
- CMI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, CMI has less shares outstanding
- CMI has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CMI is higher compared to a year ago.
2.2 Solvency
- CMI has an Altman-Z score of 4.75. This indicates that CMI is financially healthy and has little risk of bankruptcy at the moment.
- CMI has a Altman-Z score of 4.75. This is in the better half of the industry: CMI outperforms 71.21% of its industry peers.
- The Debt to FCF ratio of CMI is 3.34, which is a good value as it means it would take CMI, 3.34 years of fcf income to pay off all of its debts.
- CMI has a better Debt to FCF ratio (3.34) than 65.91% of its industry peers.
- A Debt/Equity ratio of 0.62 indicates that CMI is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.62, CMI perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.75 |
ROIC/WACC1.14
WACC9.55%
2.3 Liquidity
- A Current Ratio of 1.77 indicates that CMI should not have too much problems paying its short term obligations.
- The Current ratio of CMI (1.77) is worse than 61.36% of its industry peers.
- A Quick Ratio of 1.11 indicates that CMI should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.11, CMI perfoms like the industry average, outperforming 43.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.51% over the past year.
- Measured over the past 5 years, CMI shows a small growth in Earnings Per Share. The EPS has been growing by 7.79% on average per year.
- The Revenue has decreased by -1.80% in the past year.
- Measured over the past years, CMI shows a small growth in Revenue. The Revenue has been growing by 7.67% on average per year.
EPS 1Y (TTM)14.51%
EPS 3Y13.63%
EPS 5Y7.79%
EPS Q2Q%-4.61%
Revenue 1Y (TTM)-1.8%
Revenue growth 3Y12.39%
Revenue growth 5Y7.67%
Sales Q2Q%-1.64%
3.2 Future
- CMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.75% yearly.
- CMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.43% yearly.
EPS Next Y9.11%
EPS Next 2Y11.26%
EPS Next 3Y13.49%
EPS Next 5Y15.75%
Revenue Next Year-1.24%
Revenue Next 2Y2.15%
Revenue Next 3Y4.3%
Revenue Next 5Y5.43%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.47 indicates a rather expensive valuation of CMI.
- The rest of the industry has a similar Price/Earnings ratio as CMI.
- CMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 21.40, the valuation of CMI can be described as rather expensive.
- CMI's Price/Forward Earnings ratio is in line with the industry average.
- CMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.47 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CMI is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CMI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.29 | ||
| EV/EBITDA | 15.85 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- CMI has a very decent profitability rating, which may justify a higher PE ratio.
- CMI's earnings are expected to grow with 13.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.69
PEG (5Y)3.14
EPS Next 2Y11.26%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
- CMI has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
- CMI's Dividend Yield is a higher than the industry average which is at 0.98.
- CMI's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
- The dividend of CMI is nicely growing with an annual growth rate of 7.08%!
- CMI has paid a dividend for at least 10 years, which is a reliable track record.
- CMI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.08%
Div Incr Years19
Div Non Decr Years20
5.3 Sustainability
- 38.53% of the earnings are spent on dividend by CMI. This is a low number and sustainable payout ratio.
- CMI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.53%
EPS Next 2Y11.26%
EPS Next 3Y13.49%
565.8
-13.14 (-2.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-05 2026-02-05/amc
Inst Owners87.23%
Inst Owner Change0.36%
Ins Owners0.3%
Ins Owner Change-0.97%
Market Cap78.10B
Revenue(TTM)33.58B
Net Income(TTM)2.67B
Analysts76.3
Price Target548.54 (-3.05%)
Short Float %1.18%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend6.94
Dividend Growth(5Y)7.08%
DP38.53%
Div Incr Years19
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.52%
Min EPS beat(2)15.01%
Max EPS beat(2)24.03%
EPS beat(4)4
Avg EPS beat(4)17.02%
Min EPS beat(4)8.66%
Max EPS beat(4)24.03%
EPS beat(8)6
Avg EPS beat(8)10.42%
EPS beat(12)7
Avg EPS beat(12)7.35%
EPS beat(16)9
Avg EPS beat(16)3.53%
Revenue beat(2)2
Avg Revenue beat(2)2.37%
Min Revenue beat(2)1.44%
Max Revenue beat(2)3.3%
Revenue beat(4)3
Avg Revenue beat(4)1.79%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)3.63%
Revenue beat(8)6
Avg Revenue beat(8)1.86%
Revenue beat(12)10
Avg Revenue beat(12)2.42%
Revenue beat(16)13
Avg Revenue beat(16)2.57%
PT rev (1m)4.17%
PT rev (3m)30.39%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)6.73%
EPS NY rev (1m)0.03%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.47 | ||
| Fwd PE | 21.4 | ||
| P/S | 2.33 | ||
| P/FCF | 34.29 | ||
| P/OCF | 22.26 | ||
| P/B | 6.47 | ||
| P/tB | 10.42 | ||
| EV/EBITDA | 15.85 |
EPS(TTM)23.12
EY4.09%
EPS(NY)26.44
Fwd EY4.67%
FCF(TTM)16.5
FCFY2.92%
OCF(TTM)25.42
OCFY4.49%
SpS243.27
BVpS87.39
TBVpS54.31
PEG (NY)2.69
PEG (5Y)3.14
Graham Number213.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 22.12% | ||
| ROCE | 16.67% | ||
| ROIC | 10.92% | ||
| ROICexc | 12.51% | ||
| ROICexgc | 15.85% | ||
| OM | 12.01% | ||
| PM (TTM) | 7.94% | ||
| GM | 25.94% | ||
| FCFM | 6.78% |
ROA(3y)7.3%
ROA(5y)7.76%
ROE(3y)23.56%
ROE(5y)23.61%
ROIC(3y)10.13%
ROIC(5y)9.3%
ROICexc(3y)11.48%
ROICexc(5y)10.95%
ROICexgc(3y)15.52%
ROICexgc(5y)14.18%
ROCE(3y)16.61%
ROCE(5y)14.89%
ROICexgc growth 3Y9.39%
ROICexgc growth 5Y0.52%
ROICexc growth 3Y5.66%
ROICexc growth 5Y-1.01%
OM growth 3Y5.37%
OM growth 5Y0.23%
PM growth 3Y9.26%
PM growth 5Y3.83%
GM growth 3Y1.89%
GM growth 5Y-0.23%
F-Score6
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 112.32% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.43% | ||
| Profit Quality | 85.38% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.75 |
F-Score6
WACC9.55%
ROIC/WACC1.14
Cap/Depr(3y)116.24%
Cap/Depr(5y)110.58%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.31%
Profit Quality(3y)143.42%
Profit Quality(5y)123.85%
High Growth Momentum
Growth
EPS 1Y (TTM)14.51%
EPS 3Y13.63%
EPS 5Y7.79%
EPS Q2Q%-4.61%
EPS Next Y9.11%
EPS Next 2Y11.26%
EPS Next 3Y13.49%
EPS Next 5Y15.75%
Revenue 1Y (TTM)-1.8%
Revenue growth 3Y12.39%
Revenue growth 5Y7.67%
Sales Q2Q%-1.64%
Revenue Next Year-1.24%
Revenue Next 2Y2.15%
Revenue Next 3Y4.3%
Revenue Next 5Y5.43%
EBIT growth 1Y17.83%
EBIT growth 3Y18.42%
EBIT growth 5Y7.91%
EBIT Next Year45.97%
EBIT Next 3Y21.43%
EBIT Next 5Y19.2%
FCF growth 1Y3.03%
FCF growth 3Y-42.53%
FCF growth 5Y-35.01%
OCF growth 1Y5.57%
OCF growth 3Y-12.97%
OCF growth 5Y-14.11%
CUMMINS INC / CMI FAQ
What is the ChartMill fundamental rating of CUMMINS INC (CMI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CMI.
What is the valuation status of CUMMINS INC (CMI) stock?
ChartMill assigns a valuation rating of 3 / 10 to CUMMINS INC (CMI). This can be considered as Overvalued.
What is the profitability of CMI stock?
CUMMINS INC (CMI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of CUMMINS INC (CMI) stock?
The Price/Earnings (PE) ratio for CUMMINS INC (CMI) is 24.47 and the Price/Book (PB) ratio is 6.47.
Can you provide the dividend sustainability for CMI stock?
The dividend rating of CUMMINS INC (CMI) is 7 / 10 and the dividend payout ratio is 38.53%.