CUMMINS INC (CMI) Stock Fundamental Analysis

NYSE:CMI • US2310211063

604.39 USD
+3.91 (+0.65%)
Last: Feb 25, 2026, 09:44 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, CMI scores 6 out of 10 in our fundamental rating. CMI was compared to 130 industry peers in the Machinery industry. CMI has an excellent profitability rating, but there are some minor concerns on its financial health. CMI is not valued too expensively and it also shows a decent growth rate. CMI also has an excellent dividend rating. These ratings would make CMI suitable for dividend investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year CMI was profitable.
  • In the past year CMI had a positive cash flow from operations.
  • Each year in the past 5 years CMI has been profitable.
  • In the past 5 years CMI always reported a positive cash flow from operatings.
CMI Yearly Net Income VS EBIT VS OCF VS FCFCMI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • CMI has a Return On Assets of 8.36%. This is in the better half of the industry: CMI outperforms 76.15% of its industry peers.
  • The Return On Equity of CMI (23.02%) is better than 91.54% of its industry peers.
  • The Return On Invested Capital of CMI (12.12%) is better than 80.77% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CMI is above the industry average of 10.27%.
Industry RankSector Rank
ROA 8.36%
ROE 23.02%
ROIC 12.12%
ROA(3y)7.72%
ROA(5y)7.85%
ROE(3y)23.25%
ROE(5y)23.77%
ROIC(3y)12.81%
ROIC(5y)11.69%
CMI Yearly ROA, ROE, ROICCMI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 8.44%, CMI is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CMI has remained more or less at the same level.
  • CMI's Operating Margin of 11.45% is in line compared to the rest of the industry. CMI outperforms 58.46% of its industry peers.
  • CMI's Operating Margin has improved in the last couple of years.
  • The Gross Margin of CMI (25.29%) is worse than 64.62% of its industry peers.
  • CMI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.45%
PM (TTM) 8.44%
GM 25.29%
OM growth 3Y7.51%
OM growth 5Y5.11%
PM growth 3Y3.29%
PM growth 5Y-1.33%
GM growth 3Y2.38%
GM growth 5Y0.83%
CMI Yearly Profit, Operating, Gross MarginsCMI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CMI is still creating some value.
  • CMI has more shares outstanding than it did 1 year ago.
  • CMI has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, CMI has an improved debt to assets ratio.
CMI Yearly Shares OutstandingCMI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CMI Yearly Total Debt VS Total AssetsCMI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • CMI has an Altman-Z score of 4.85. This indicates that CMI is financially healthy and has little risk of bankruptcy at the moment.
  • CMI's Altman-Z score of 4.85 is fine compared to the rest of the industry. CMI outperforms 73.08% of its industry peers.
  • CMI has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as CMI would need 3.17 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.17, CMI is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
  • A Debt/Equity ratio of 0.60 indicates that CMI is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.60, CMI is doing worse than 60.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 3.17
Altman-Z 4.85
ROIC/WACC1.34
WACC9.02%
CMI Yearly LT Debt VS Equity VS FCFCMI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.76 indicates that CMI should not have too much problems paying its short term obligations.
  • CMI has a worse Current ratio (1.76) than 63.85% of its industry peers.
  • CMI has a Quick Ratio of 1.16. This is a normal value and indicates that CMI is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.16, CMI is in line with its industry, outperforming 43.85% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.16
CMI Yearly Current Assets VS Current LiabilitesCMI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • CMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.17%.
  • The Earnings Per Share has been growing by 13.03% on average over the past years. This is quite good.
  • CMI shows a decrease in Revenue. In the last year, the revenue decreased by -1.27%.
  • The Revenue has been growing by 11.19% on average over the past years. This is quite good.
EPS 1Y (TTM)4.17%
EPS 3Y11.09%
EPS 5Y13.03%
EPS Q2Q%-16.93%
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y6.25%
Revenue growth 5Y11.19%
Sales Q2Q%1.05%

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 16.27% yearly.
  • CMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.57% yearly.
EPS Next Y19.84%
EPS Next 2Y19.4%
EPS Next 3Y16.07%
EPS Next 5Y16.27%
Revenue Next Year7.09%
Revenue Next 2Y7.82%
Revenue Next 3Y7.9%
Revenue Next 5Y8.57%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CMI Yearly Revenue VS EstimatesCMI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B 40B 50B
CMI Yearly EPS VS EstimatesCMI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30 40

More info and screens

Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 27.16 indicates a quite expensive valuation of CMI.
  • Compared to the rest of the industry, the Price/Earnings ratio of CMI is on the same level as its industry peers.
  • CMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 22.67 indicates a rather expensive valuation of CMI.
  • 60.77% of the companies in the same industry are more expensive than CMI, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of CMI to the average of the S&P500 Index (28.01), we can say CMI is valued inline with the index average.
Industry RankSector Rank
PE 27.16
Fwd PE 22.67
CMI Price Earnings VS Forward Price EarningsCMI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • CMI's Enterprise Value to EBITDA is on the same level as the industry average.
  • 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 RankSector Rank
P/FCF 34.98
EV/EBITDA 17.23
CMI Per share dataCMI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

4.3 Compensation for Growth

  • CMI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)2.08
EPS Next 2Y19.4%
EPS Next 3Y16.07%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • CMI has a Yearly Dividend Yield of 1.34%. 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 1.18.
  • CMI's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.34%

5.2 History

  • The dividend of CMI is nicely growing with an annual growth rate of 7.87%!
  • CMI has paid a dividend for at least 10 years, which is a reliable track record.
  • CMI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.87%
Div Incr Years19
Div Non Decr Years20
CMI Yearly Dividends per shareCMI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • 37.11% of the earnings are spent on dividend by CMI. This is a low number and sustainable payout ratio.
  • The dividend of CMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.11%
EPS Next 2Y19.4%
EPS Next 3Y16.07%
CMI Yearly Income VS Free CF VS DividendCMI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
CMI Dividend Payout.CMI Dividend Payout, showing the Payout Ratio.CMI Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

CUMMINS INC

NYSE:CMI (2/25/2026, 9:44:03 AM)

604.39

+3.91 (+0.65%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-04
Inst Owners87.23%
Inst Owner Change2.86%
Ins Owners0.3%
Ins Owner Change-2.46%
Market Cap83.47B
Revenue(TTM)33.67B
Net Income(TTM)2.84B
Analysts74.81
Price Target565.98 (-6.36%)
Short Float %1%
Short Ratio1.45
Dividend
Industry RankSector Rank
Dividend Yield 1.34%
Yearly Dividend7.66
Dividend Growth(5Y)7.87%
DP37.11%
Div Incr Years19
Div Non Decr Years20
Ex-Date02-20
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.11%
Min EPS beat(2)-17.22%
Max EPS beat(2)15.01%
EPS beat(4)3
Avg EPS beat(4)10.55%
Min EPS beat(4)-17.22%
Max EPS beat(4)24.03%
EPS beat(8)6
Avg EPS beat(8)9.81%
EPS beat(12)7
Avg EPS beat(12)6.12%
EPS beat(16)9
Avg EPS beat(16)3.34%
Revenue beat(2)2
Avg Revenue beat(2)3.64%
Min Revenue beat(2)3.3%
Max Revenue beat(2)3.98%
Revenue beat(4)3
Avg Revenue beat(4)1.88%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)3.98%
Revenue beat(8)6
Avg Revenue beat(8)1.87%
Revenue beat(12)10
Avg Revenue beat(12)2.19%
Revenue beat(16)14
Avg Revenue beat(16)2.82%
PT rev (1m)3.18%
PT rev (3m)14.58%
EPS NQ rev (1m)2.72%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)0.24%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)3.31%
Revenue NQ rev (3m)3.47%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)4.01%
Valuation
Industry RankSector Rank
PE 27.16
Fwd PE 22.67
P/S 2.48
P/FCF 34.98
P/OCF 23.05
P/B 6.76
P/tB 10.49
EV/EBITDA 17.23
EPS(TTM)22.25
EY3.68%
EPS(NY)26.66
Fwd EY4.41%
FCF(TTM)17.28
FCFY2.86%
OCF(TTM)26.22
OCFY4.34%
SpS243.81
BVpS89.42
TBVpS57.62
PEG (NY)1.37
PEG (5Y)2.08
Graham Number211.58
Profitability
Industry RankSector Rank
ROA 8.36%
ROE 23.02%
ROCE 15.81%
ROIC 12.12%
ROICexc 14.16%
ROICexgc 17.81%
OM 11.45%
PM (TTM) 8.44%
GM 25.29%
FCFM 7.09%
ROA(3y)7.72%
ROA(5y)7.85%
ROE(3y)23.25%
ROE(5y)23.77%
ROIC(3y)12.81%
ROIC(5y)11.69%
ROICexc(3y)14.66%
ROICexc(5y)13.52%
ROICexgc(3y)19.32%
ROICexgc(5y)17.59%
ROCE(3y)17.34%
ROCE(5y)15.93%
ROICexgc growth 3Y7.12%
ROICexgc growth 5Y6.4%
ROICexc growth 3Y9.89%
ROICexc growth 5Y5.61%
OM growth 3Y7.51%
OM growth 5Y5.11%
PM growth 3Y3.29%
PM growth 5Y-1.33%
GM growth 3Y2.38%
GM growth 5Y0.83%
F-Score5
Asset Turnover0.99
Health
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 3.17
Debt/EBITDA 1.5
Cap/Depr 111.77%
Cap/Sales 3.67%
Interest Coverage 12.51
Cash Conversion 73.02%
Profit Quality 83.93%
Current Ratio 1.76
Quick Ratio 1.16
Altman-Z 4.85
F-Score5
WACC9.02%
ROIC/WACC1.34
Cap/Depr(3y)114.55%
Cap/Depr(5y)115.84%
Cap/Sales(3y)3.59%
Cap/Sales(5y)3.46%
Profit Quality(3y)155.19%
Profit Quality(5y)116.63%
High Growth Momentum
Growth
EPS 1Y (TTM)4.17%
EPS 3Y11.09%
EPS 5Y13.03%
EPS Q2Q%-16.93%
EPS Next Y19.84%
EPS Next 2Y19.4%
EPS Next 3Y16.07%
EPS Next 5Y16.27%
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y6.25%
Revenue growth 5Y11.19%
Sales Q2Q%1.05%
Revenue Next Year7.09%
Revenue Next 2Y7.82%
Revenue Next 3Y7.9%
Revenue Next 5Y8.57%
EBIT growth 1Y5.19%
EBIT growth 3Y14.23%
EBIT growth 5Y16.87%
EBIT Next Year42.23%
EBIT Next 3Y21.7%
EBIT Next 5Y17.49%
FCF growth 1Y755.2%
FCF growth 3Y31.64%
FCF growth 5Y2.13%
OCF growth 1Y143.51%
OCF growth 3Y22.66%
OCF growth 5Y5.87%

CUMMINS INC / CMI FAQ

What is the ChartMill fundamental rating of CUMMINS INC (CMI) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CMI.


What is the valuation status of CUMMINS INC (CMI) stock?

ChartMill assigns a valuation rating of 4 / 10 to CUMMINS INC (CMI). This can be considered as Fairly Valued.


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 27.16 and the Price/Book (PB) ratio is 6.76.


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 37.11%.