CUMMINS INC (CMI) Stock Fundamental Analysis

NYSE:CMI • US2310211063

601.01 USD
+12.22 (+2.08%)
At close: Feb 13, 2026
605 USD
+3.99 (+0.66%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall CMI gets a fundamental rating of 6 out of 10. We evaluated CMI against 131 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. Finally CMI also has an excellent dividend rating. With these ratings, CMI could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

7

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.
  • Of the past 5 years CMI 4 years had a positive operating cash flow.
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

  • The Return On Assets of CMI (7.93%) is better than 75.57% of its industry peers.
  • CMI has a Return On Equity of 22.12%. This is amongst the best in the industry. CMI outperforms 91.60% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 12.78%, CMI belongs to the top of the industry, outperforming 80.92% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CMI is above the industry average of 10.21%.
  • The last Return On Invested Capital (12.78%) for CMI is above the 3 year average (12.78%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.93%
ROE 22.12%
ROIC 12.78%
ROA(3y)7.72%
ROA(5y)7.85%
ROE(3y)23.25%
ROE(5y)23.77%
ROIC(3y)12.78%
ROIC(5y)11.67%
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

  • CMI has a Profit Margin of 7.94%. This is in the better half of the industry: CMI outperforms 66.41% of its industry peers.
  • In the last couple of years the Profit Margin of CMI has remained more or less at the same level.
  • CMI has a better Operating Margin (12.01%) than 60.31% of its industry peers.
  • In the last couple of years the Operating Margin of CMI has grown nicely.
  • Looking at the Gross Margin, with a value of 25.94%, CMI is doing worse than 62.60% of the companies in the same industry.
  • CMI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.01%
PM (TTM) 7.94%
GM 25.94%
OM growth 3Y7.28%
OM growth 5Y4.97%
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

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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.
  • Compared to 1 year ago, CMI has more shares outstanding
  • CMI has less shares outstanding than it did 5 years ago.
  • CMI has a better debt/assets ratio than last year.
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 4.84. This indicates that CMI is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of CMI (4.84) is better than 74.05% of its industry peers.
  • CMI has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as CMI would need 3.34 years to pay back of all of its debts.
  • The Debt to FCF ratio of CMI (3.34) is better than 65.65% of its industry peers.
  • A Debt/Equity ratio of 0.62 indicates that CMI is somewhat dependend on debt financing.
  • The Debt to Equity ratio of CMI (0.62) is worse than 61.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.34
Altman-Z 4.84
ROIC/WACC1.38
WACC9.28%
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

  • CMI has a Current Ratio of 1.77. This is a normal value and indicates that CMI is financially healthy and should not expect problems in meeting its short term obligations.
  • CMI's Current ratio of 1.77 is on the low side compared to the rest of the industry. CMI is outperformed by 63.36% of its industry peers.
  • A Quick Ratio of 1.11 indicates that CMI should not have too much problems paying its short term obligations.
  • CMI's Quick ratio of 1.11 is in line compared to the rest of the industry. CMI outperforms 41.98% of its industry peers.
Industry RankSector Rank
Current Ratio 1.77
Quick Ratio 1.11
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

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

5

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.
  • CMI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.19% yearly.
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.
  • 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 Year5.58%
Revenue Next 2Y7.07%
Revenue Next 3Y6.81%
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.
  • 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

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 27.01, CMI can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Earnings ratio as CMI.
  • CMI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.97.
  • Based on the Price/Forward Earnings ratio of 22.54, the valuation of CMI can be described as rather expensive.
  • 61.07% of the companies in the same industry are more expensive than CMI, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.96. CMI is around the same levels.
Industry RankSector Rank
PE 27.01
Fwd PE 22.54
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

  • 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 ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 36.44
EV/EBITDA 16.48
CMI Per share dataCMI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of CMI may justify a higher PE ratio.
  • A more expensive valuation may be justified as CMI's earnings are expected to grow with 16.07% in the coming years.
PEG (NY)1.36
PEG (5Y)2.07
EPS Next 2Y19.4%
EPS Next 3Y16.07%

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

7

5. Dividend

5.1 Amount

  • CMI has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.14, CMI pays a bit more dividend than its industry peers.
  • CMI's Dividend Yield is slightly below the S&P500 average, which is at 1.79.
Industry RankSector Rank
Dividend Yield 1.36%

5.2 History

  • The dividend of CMI is nicely growing with an annual growth rate of 7.08%!
  • CMI has been paying a dividend for at least 10 years, so it has 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
CMI Yearly Dividends per shareCMI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

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 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

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Find the best dividend stocksShow peers with best dividend

CUMMINS INC

NYSE:CMI (2/13/2026, 8:04:00 PM)

After market: 605 +3.99 (+0.66%)

601.01

+12.22 (+2.08%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-04
Inst Owners87.23%
Inst Owner Change0.48%
Ins Owners0.3%
Ins Owner Change-0.91%
Market Cap83.00B
Revenue(TTM)33.67B
Net Income(TTM)2.67B
Analysts74.81
Price Target565.98 (-5.83%)
Short Float %1.33%
Short Ratio2.1
Dividend
Industry RankSector Rank
Dividend Yield 1.36%
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)4.55%
PT rev (3m)27.68%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)4.94%
EPS NY rev (1m)0.05%
EPS NY rev (3m)4.48%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.16%
Valuation
Industry RankSector Rank
PE 27.01
Fwd PE 22.54
P/S 2.47
P/FCF 36.44
P/OCF 23.65
P/B 6.88
P/tB 11.07
EV/EBITDA 16.48
EPS(TTM)22.25
EY3.7%
EPS(NY)26.66
Fwd EY4.44%
FCF(TTM)16.5
FCFY2.74%
OCF(TTM)25.41
OCFY4.23%
SpS243.16
BVpS87.36
TBVpS54.29
PEG (NY)1.36
PEG (5Y)2.07
Graham Number209.13
Profitability
Industry RankSector Rank
ROA 7.93%
ROE 22.12%
ROCE 16.67%
ROIC 12.78%
ROICexc 14.64%
ROICexgc 18.55%
OM 12.01%
PM (TTM) 7.94%
GM 25.94%
FCFM 6.78%
ROA(3y)7.72%
ROA(5y)7.85%
ROE(3y)23.25%
ROE(5y)23.77%
ROIC(3y)12.78%
ROIC(5y)11.67%
ROICexc(3y)14.63%
ROICexc(5y)13.51%
ROICexgc(3y)19.28%
ROICexgc(5y)17.56%
ROCE(3y)17.3%
ROCE(5y)15.91%
ROICexgc growth 3Y6.89%
ROICexgc growth 5Y6.26%
ROICexc growth 3Y9.65%
ROICexc growth 5Y5.47%
OM growth 3Y7.28%
OM growth 5Y4.97%
PM growth 3Y3.29%
PM growth 5Y-1.33%
GM growth 3Y2.38%
GM growth 5Y0.83%
F-Score6
Asset Turnover1
Health
Industry RankSector 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 4.84
F-Score6
WACC9.28%
ROIC/WACC1.38
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
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 Year5.58%
Revenue Next 2Y7.07%
Revenue Next 3Y6.81%
Revenue Next 5Y8.57%
EBIT growth 1Y17.83%
EBIT growth 3Y13.98%
EBIT growth 5Y16.72%
EBIT Next Year42.23%
EBIT Next 3Y21.7%
EBIT Next 5Y17.49%
FCF growth 1Y575.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y130.25%
OCF growth 3YN/A
OCF growth 5YN/A

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 27.01 and the Price/Book (PB) ratio is 6.88.


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%.