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

5

Taking everything into account, CMI scores 5 out of 10 in our fundamental rating. CMI was compared to 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. While showing a medium growth rate, CMI is valued expensive at the moment. 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

  • CMI had positive earnings in the past year.
  • In the past year CMI had a positive cash flow from operations.
  • CMI had positive earnings in each of the past 5 years.
  • CMI had a positive operating cash flow in 4 of the past 5 years.
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 75.76% of its industry peers.
  • CMI's Return On Equity of 22.12% is amongst the best of the industry. CMI outperforms 91.67% of its industry peers.
  • CMI's Return On Invested Capital of 12.78% is amongst the best of the industry. CMI outperforms 81.06% of its industry peers.
  • CMI had an Average Return On Invested Capital over the past 3 years of 12.78%. This is above the industry average of 10.12%.
  • 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 66.67% of its industry peers.
  • CMI's Profit Margin has been stable in the last couple of years.
  • With a decent Operating Margin value of 12.01%, CMI is doing good in the industry, outperforming 60.61% of the companies in the same industry.
  • CMI's Operating Margin has improved 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 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
  • The number of shares outstanding for CMI has been reduced compared to 5 years ago.
  • The debt/assets ratio for CMI has been reduced compared to a year ago.
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

  • An Altman-Z score of 4.89 indicates that CMI is not in any danger for bankruptcy at the moment.
  • CMI's Altman-Z score of 4.89 is fine compared to the rest of the industry. CMI outperforms 74.24% 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.
  • The Debt to FCF ratio of CMI (3.34) is better than 65.91% of its industry peers.
  • CMI has a Debt/Equity ratio of 0.62. This is a neutral value indicating CMI is somewhat dependend on debt financing.
  • CMI has a Debt to Equity ratio of 0.62. This is in the lower half of the industry: CMI underperforms 61.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.34
Altman-Z 4.89
ROIC/WACC1.38
WACC9.23%
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 1.77 indicates that CMI should not have too much problems paying its short term obligations.
  • The Current ratio of CMI (1.77) is worse than 62.88% of its industry peers.
  • CMI has a Quick Ratio of 1.11. This is a normal value and indicates that CMI is financially healthy and should not expect problems in meeting its short term obligations.
  • CMI has a Quick ratio (1.11) which is in line with 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.
  • The Earnings Per Share has been growing by 13.03% on average over the past years. This is quite good.
  • Looking at the last year, CMI shows a decrease in Revenue. The Revenue has decreased by -1.27% in the last year.
  • 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.
  • Based on estimates for the next years, CMI will show a quite strong growth in Revenue. The Revenue will grow by 8.57% on average per year.
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.
  • 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.
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

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.01, the valuation of CMI can be described as expensive.
  • 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 26.68, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 22.54 indicates a rather expensive valuation of CMI.
  • The rest of the industry has a similar Price/Forward Earnings ratio as CMI.
  • 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 inline with the index average.
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.
  • 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 36.44
EV/EBITDA 16.81
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.
  • 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%

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 1.36%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.18, CMI pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.84, CMI is paying slightly less dividend.
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 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
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

  • CMI pays out 38.53% 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.
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 Change-86.23%
Ins Owners0.3%
Ins Owner Change-2.46%
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)0.38%
EPS NQ rev (3m)4.94%
EPS NY rev (1m)0.84%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)2.55%
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 16.81
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 4.89
F-Score6
WACC9.23%
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%.