CUMMINS INC (CMI) Stock Fundamental Analysis

NYSE:CMI • US2310211063

596.91 USD
+3.91 (+0.66%)
At close: Feb 19, 2026
596.91 USD
0 (0%)
After Hours: 2/19/2026, 8:04:00 PM
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 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 correct valuation and a medium growth rate. 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.
  • In the past 5 years CMI has always been profitable.
  • 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.
  • CMI has a Return On Invested Capital of 12.78%. This is amongst the best in the industry. CMI outperforms 80.92% 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 10.17%.
  • The 3 year average ROIC (12.78%) for CMI is below the current ROIC(12.78%), indicating increased profibility in the last year.
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

  • With a decent Profit Margin value of 7.94%, CMI is doing good in the industry, outperforming 66.41% 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 has a Operating Margin of 12.01%. This is in the better half of the industry: CMI outperforms 60.31% of its industry peers.
  • In the last couple of years the Operating Margin of CMI has grown nicely.
  • CMI has a Gross Margin of 25.94%. This is in the lower half of the industry: CMI underperforms 61.83% of its industry peers.
  • 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.
  • CMI has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CMI has less shares outstanding
  • 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

  • An Altman-Z score of 4.86 indicates that CMI is not in any danger for bankruptcy at the moment.
  • CMI has a Altman-Z score of 4.86. This is in the better half of the industry: CMI outperforms 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.
  • Looking at the Debt to FCF ratio, with a value of 3.34, CMI is in the better half of the industry, outperforming 64.89% of the companies in the same industry.
  • 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 61.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.34
Altman-Z 4.86
ROIC/WACC1.43
WACC8.97%
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.
  • The Current ratio of CMI (1.77) is worse than 62.60% 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'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.
  • Measured over the past years, CMI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.03% on average per year.
  • CMI shows a decrease in Revenue. In the last year, the revenue decreased by -1.27%.
  • 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

  • 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.
  • 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 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

4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 26.83, which means the current valuation is very expensive for CMI.
  • CMI's Price/Earnings is on the same level as the industry average.
  • CMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.09, which is the current average of the S&P500 Index.
  • CMI is valuated rather expensively with a Price/Forward Earnings ratio of 22.39.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CMI indicates a somewhat cheap valuation: CMI is cheaper than 61.07% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of CMI to the average of the S&P500 Index (27.98), we can say CMI is valued slightly cheaper.
Industry RankSector Rank
PE 26.83
Fwd PE 22.39
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 ratio is in line with the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as CMI.
Industry RankSector Rank
P/FCF 36.19
EV/EBITDA 16.59
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.
  • 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)1.35
PEG (5Y)2.06
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 1.17, CMI pays a bit more dividend than its industry peers.
  • CMI's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
Industry RankSector Rank
Dividend Yield 1.36%

5.2 History

  • On average, the dividend of CMI grows each year by 7.08%, which is quite nice.
  • 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)7.08%
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 (2/19/2026, 8:04:00 PM)

After market: 596.91 0 (0%)

596.91

+3.91 (+0.66%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-04
Inst Owners87.23%
Inst Owner Change1.05%
Ins Owners0.3%
Ins Owner Change-2.46%
Market Cap82.43B
Revenue(TTM)33.67B
Net Income(TTM)2.67B
Analysts74.81
Price Target565.98 (-5.18%)
Short Float %1%
Short Ratio1.45
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 26.83
Fwd PE 22.39
P/S 2.45
P/FCF 36.19
P/OCF 23.49
P/B 6.83
P/tB 11
EV/EBITDA 16.59
EPS(TTM)22.25
EY3.73%
EPS(NY)26.66
Fwd EY4.47%
FCF(TTM)16.5
FCFY2.76%
OCF(TTM)25.41
OCFY4.26%
SpS243.16
BVpS87.36
TBVpS54.29
PEG (NY)1.35
PEG (5Y)2.06
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 4.86
F-Score6
WACC8.97%
ROIC/WACC1.43
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 26.83 and the Price/Book (PB) ratio is 6.83.


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%.