CUMMINS INC (CMI) Stock Fundamental Analysis
NYSE:CMI • US2310211063
583.87 USD
-4.24 (-0.72%)
At close: Feb 27, 2026
583.87 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
CMI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. CMI scores excellent on profitability, but there are some minor concerns on its financial health. CMI has a decent growth rate and is not valued too expensively. CMI also has an excellent dividend rating. These ratings would make CMI suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- CMI had positive earnings in the past year.
- 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's Return On Assets of 8.36% is fine compared to the rest of the industry. CMI outperforms 76.15% of its industry peers.
- With an excellent Return On Equity value of 23.02%, CMI belongs to the best of the industry, outperforming 91.54% of the companies in the same industry.
- CMI has a better Return On Invested Capital (12.12%) than 80.77% of its industry peers.
- CMI had an Average Return On Invested Capital over the past 3 years of 12.81%. This is above the industry average of 10.27%.
| Industry Rank | Sector 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%
1.3 Margins
- CMI's Profit Margin of 8.44% is fine compared to the rest of the industry. CMI outperforms 67.69% of its industry peers.
- CMI's Profit Margin has been stable in the last couple of years.
- The Operating Margin of CMI (11.45%) is comparable to the rest of the industry.
- CMI's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 25.29%, CMI is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
- 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 | 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%
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.
- The number of shares outstanding for CMI has been increased compared to 1 year ago.
- The number of shares outstanding for CMI has been reduced compared to 5 years ago.
- Compared to 1 year ago, CMI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.81 indicates that CMI is not in any danger for bankruptcy at the moment.
- The Altman-Z score of CMI (4.81) is better than 73.08% of its industry peers.
- The Debt to FCF ratio of CMI is 3.17, which is a good value as it means it would take CMI, 3.17 years of fcf income to pay off 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.
- CMI has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: CMI underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.81 |
ROIC/WACC1.35
WACC8.98%
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 Current ratio of 1.76. This is in the lower half of the industry: CMI underperforms 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.
- With a Quick ratio value of 1.16, CMI perfoms like the industry average, outperforming 43.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.17% over the past year.
- CMI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.03% yearly.
- Looking at the last year, CMI shows a decrease in Revenue. The Revenue has decreased by -1.27% in the last year.
- Measured over the past years, CMI shows a quite strong growth in Revenue. The Revenue has been growing by 11.19% on average per year.
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
- Based on estimates for the next years, CMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.27% on average per year.
- The Revenue is expected to grow by 8.57% on average over the next years. This is quite good.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- CMI is valuated quite expensively with a Price/Earnings ratio of 26.24.
- CMI's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.10, CMI is valued at the same level.
- The Price/Forward Earnings ratio is 21.90, which indicates a rather expensive current valuation of CMI.
- CMI's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of CMI to the average of the S&P500 Index (28.06), we can say CMI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.24 | ||
| Fwd PE | 21.9 |
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.
- CMI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.79 | ||
| EV/EBITDA | 16.88 |
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)1.32
PEG (5Y)2.01
EPS Next 2Y19.4%
EPS Next 3Y16.07%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.34%, CMI has a reasonable but not impressive dividend return.
- CMI's Dividend Yield is a higher than the industry average which is at 1.19.
- Compared to the average S&P500 Dividend Yield of 1.80, CMI is paying slightly less dividend.
| Industry Rank | Sector 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
5.3 Sustainability
- CMI pays out 37.11% of its income as dividend. This is a sustainable payout ratio.
- CMI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.11%
EPS Next 2Y19.4%
EPS Next 3Y16.07%
583.87
-4.24 (-0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners87.23%
Inst Owner Change2.86%
Ins Owners0.3%
Ins Owner Change-2.46%
Market Cap80.63B
Revenue(TTM)33.67B
Net Income(TTM)2.84B
Analysts74.81
Price Target565.98 (-3.06%)
Short Float %1%
Short Ratio1.45
Dividend
| Industry Rank | Sector 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 2026-02-20 (2)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.24 | ||
| Fwd PE | 21.9 | ||
| P/S | 2.39 | ||
| P/FCF | 33.79 | ||
| P/OCF | 22.27 | ||
| P/B | 6.53 | ||
| P/tB | 10.13 | ||
| EV/EBITDA | 16.88 |
EPS(TTM)22.25
EY3.81%
EPS(NY)26.66
Fwd EY4.57%
FCF(TTM)17.28
FCFY2.96%
OCF(TTM)26.22
OCFY4.49%
SpS243.81
BVpS89.42
TBVpS57.62
PEG (NY)1.32
PEG (5Y)2.01
Graham Number211.58
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.81 |
F-Score5
WACC8.98%
ROIC/WACC1.35
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 26.24 and the Price/Book (PB) ratio is 6.53.
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%.