CUMMINS INC (CMI) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CMI • US2310211063

595.13 USD
+16.31 (+2.82%)
At close: Feb 2, 2026
594 USD
-1.13 (-0.19%)
After Hours: 2/2/2026, 8:04:00 PM
Fundamental Rating

5

CMI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. CMI is quite expensive at the moment. It does show a decent growth rate. Finally CMI also has an excellent dividend rating. This makes CMI very considerable 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.
  • In the past 5 years CMI has always 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 1B 2B 3B

1.2 Ratios

  • The Return On Assets of CMI (7.93%) is better than 74.24% of its industry peers.
  • The Return On Equity of CMI (22.12%) is better than 90.91% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 10.92%, CMI is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CMI is in line with the industry average of 10.37%.
  • The last Return On Invested Capital (10.92%) for CMI is above the 3 year average (10.13%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.93%
ROE 22.12%
ROIC 10.92%
ROA(3y)7.3%
ROA(5y)7.76%
ROE(3y)23.56%
ROE(5y)23.61%
ROIC(3y)10.13%
ROIC(5y)9.3%
CMI Yearly ROA, ROE, ROICCMI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • CMI's Profit Margin of 7.94% is fine compared to the rest of the industry. CMI outperforms 65.91% of its industry peers.
  • In the last couple of years the Profit Margin of CMI has grown nicely.
  • Looking at the Operating Margin, with a value of 12.01%, CMI is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CMI has remained more or less at the same level.
  • With a Gross Margin value of 25.94%, CMI is not doing good in the industry: 62.12% 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 RankSector Rank
OM 12.01%
PM (TTM) 7.94%
GM 25.94%
OM growth 3Y5.37%
OM growth 5Y0.23%
PM growth 3Y9.26%
PM growth 5Y3.83%
GM growth 3Y1.89%
GM growth 5Y-0.23%
CMI Yearly Profit, Operating, Gross MarginsCMI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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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 less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CMI has less shares outstanding
  • CMI has a worse debt/assets ratio than last year.
CMI Yearly Shares OutstandingCMI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 10B 20B 30B

2.2 Solvency

  • CMI has an Altman-Z score of 4.87. This indicates that CMI is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.87, CMI is doing good in the industry, outperforming 73.48% of the companies in the same industry.
  • 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 65.15% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.62, CMI is in line with its industry, outperforming 40.91% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.34
Altman-Z 4.87
ROIC/WACC1.15
WACC9.48%
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 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 61.36% 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.
  • Looking at the Quick ratio, with a value of 1.11, CMI is in line with its industry, outperforming 43.18% of the companies in the same industry.
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 5B 10B 15B

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4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 14.51% over the past year.
  • CMI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.79% yearly.
  • The Revenue has decreased by -1.80% in the past year.
  • Measured over the past years, CMI shows a small growth in Revenue. The Revenue has been growing by 7.67% on average per year.
EPS 1Y (TTM)14.51%
EPS 3Y13.63%
EPS 5Y7.79%
EPS Q2Q%-4.61%
Revenue 1Y (TTM)-1.8%
Revenue growth 3Y12.39%
Revenue growth 5Y7.67%
Sales Q2Q%-1.64%

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 15.75% on average per year.
  • The Revenue is expected to grow by 5.43% on average over the next years.
EPS Next Y9.12%
EPS Next 2Y11.6%
EPS Next 3Y13.98%
EPS Next 5Y15.75%
Revenue Next Year-1.19%
Revenue Next 2Y2.16%
Revenue Next 3Y4.28%
Revenue Next 5Y5.43%

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 10 20 30 40

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3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 25.74 indicates a quite expensive valuation of CMI.
  • The rest of the industry has a similar Price/Earnings ratio as CMI.
  • When comparing the Price/Earnings ratio of CMI to the average of the S&P500 Index (28.41), we can say CMI is valued inline with the index average.
  • CMI is valuated rather expensively with a Price/Forward Earnings ratio of 22.37.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CMI is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of CMI to the average of the S&P500 Index (25.64), we can say CMI is valued inline with the index average.
Industry RankSector Rank
PE 25.74
Fwd PE 22.37
CMI Price Earnings VS Forward Price EarningsCMI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as CMI.
  • 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 36.06
EV/EBITDA 16.64
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CMI does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of CMI may justify a higher PE ratio.
  • CMI's earnings are expected to grow with 13.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.82
PEG (5Y)3.3
EPS Next 2Y11.6%
EPS Next 3Y13.98%

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7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.37%, CMI has a reasonable but not impressive dividend return.
  • CMI's Dividend Yield is a higher than the industry average which is at 1.01.
  • CMI's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 1.37%

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.
  • The dividend of CMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.53%
EPS Next 2Y11.6%
EPS Next 3Y13.98%
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 1B 2B 3B
CMI Dividend Payout.CMI Dividend Payout, showing the Payout Ratio.CMI Dividend Payout.PayoutRetained Earnings

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CUMMINS INC

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

After market: 594 -1.13 (-0.19%)

595.13

+16.31 (+2.82%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-06
Earnings (Next)02-05
Inst Owners87.23%
Inst Owner Change-1.03%
Ins Owners0.3%
Ins Owner Change-0.97%
Market Cap82.15B
Revenue(TTM)33.58B
Net Income(TTM)2.67B
Analysts76.3
Price Target548.54 (-7.83%)
Short Float %1.18%
Short Ratio1.78
Dividend
Industry RankSector Rank
Dividend Yield 1.37%
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)1.33%
PT rev (3m)23.75%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)9.25%
EPS NY rev (1m)0.01%
EPS NY rev (3m)4.43%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.23%
Valuation
Industry RankSector Rank
PE 25.74
Fwd PE 22.37
P/S 2.45
P/FCF 36.06
P/OCF 23.41
P/B 6.81
P/tB 10.96
EV/EBITDA 16.64
EPS(TTM)23.12
EY3.88%
EPS(NY)26.6
Fwd EY4.47%
FCF(TTM)16.5
FCFY2.77%
OCF(TTM)25.42
OCFY4.27%
SpS243.27
BVpS87.39
TBVpS54.31
PEG (NY)2.82
PEG (5Y)3.3
Graham Number213.22
Profitability
Industry RankSector Rank
ROA 7.93%
ROE 22.12%
ROCE 16.67%
ROIC 10.92%
ROICexc 12.51%
ROICexgc 15.85%
OM 12.01%
PM (TTM) 7.94%
GM 25.94%
FCFM 6.78%
ROA(3y)7.3%
ROA(5y)7.76%
ROE(3y)23.56%
ROE(5y)23.61%
ROIC(3y)10.13%
ROIC(5y)9.3%
ROICexc(3y)11.48%
ROICexc(5y)10.95%
ROICexgc(3y)15.52%
ROICexgc(5y)14.18%
ROCE(3y)16.61%
ROCE(5y)14.89%
ROICexgc growth 3Y9.39%
ROICexgc growth 5Y0.52%
ROICexc growth 3Y5.66%
ROICexc growth 5Y-1.01%
OM growth 3Y5.37%
OM growth 5Y0.23%
PM growth 3Y9.26%
PM growth 5Y3.83%
GM growth 3Y1.89%
GM growth 5Y-0.23%
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 4.87
F-Score6
WACC9.48%
ROIC/WACC1.15
Cap/Depr(3y)116.24%
Cap/Depr(5y)110.58%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.31%
Profit Quality(3y)143.42%
Profit Quality(5y)123.85%
High Growth Momentum
Growth
EPS 1Y (TTM)14.51%
EPS 3Y13.63%
EPS 5Y7.79%
EPS Q2Q%-4.61%
EPS Next Y9.12%
EPS Next 2Y11.6%
EPS Next 3Y13.98%
EPS Next 5Y15.75%
Revenue 1Y (TTM)-1.8%
Revenue growth 3Y12.39%
Revenue growth 5Y7.67%
Sales Q2Q%-1.64%
Revenue Next Year-1.19%
Revenue Next 2Y2.16%
Revenue Next 3Y4.28%
Revenue Next 5Y5.43%
EBIT growth 1Y17.83%
EBIT growth 3Y18.42%
EBIT growth 5Y7.91%
EBIT Next Year46.38%
EBIT Next 3Y21.78%
EBIT Next 5Y19.2%
FCF growth 1Y3.03%
FCF growth 3Y-42.53%
FCF growth 5Y-35.01%
OCF growth 1Y5.57%
OCF growth 3Y-12.97%
OCF growth 5Y-14.11%

CUMMINS INC / CMI FAQ

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

ChartMill assigns a fundamental rating of 5 / 10 to CMI.


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

ChartMill assigns a valuation rating of 3 / 10 to CUMMINS INC (CMI). This can be considered as Overvalued.


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 25.74 and the Price/Book (PB) ratio is 6.81.


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%.