CUMMINS INC (CMI) Stock Fundamental Analysis

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

577.73 USD
+37.08 (+6.86%)
At close: Feb 6, 2026
574.87 USD
-2.86 (-0.5%)
After Hours: 2/6/2026, 8:25:42 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
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. CMI has only an average score on both its financial health and profitability. CMI has a valuation in line with the averages, but it does not seem to be growing. Finally CMI also has an excellent dividend rating. These ratings could make CMI a good candidate for dividend investing.


Dividend Valuation Growth Profitability Health

6

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 4 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 1B 2B 3B

1.2 Ratios

  • With a decent Return On Assets value of 7.93%, CMI is doing good in the industry, outperforming 74.24% of the companies in the same industry.
  • The Return On Equity of CMI (22.12%) is better than 90.91% of its industry peers.
  • With a decent Return On Invested Capital value of 10.92%, CMI is doing good in 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

  • The Profit Margin of CMI (7.94%) is better than 65.91% of its industry peers.
  • In the last couple of years the Profit Margin of CMI has grown nicely.
  • CMI has a better Operating Margin (12.01%) than 61.36% of its industry peers.
  • In the last couple of years the Operating Margin of CMI has remained more or less at the same level.
  • CMI has a worse Gross Margin (25.94%) than 62.12% 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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CMI is creating some value.
  • CMI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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

  • An Altman-Z score of 4.66 indicates that CMI is not in any danger for bankruptcy at the moment.
  • CMI has a Altman-Z score of 4.66. This is in the better half of the industry: CMI outperforms 72.73% 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.
  • Looking at the Debt to FCF ratio, with a value of 3.34, CMI is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
  • A Debt/Equity ratio of 0.62 indicates that 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 40.15% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.34
Altman-Z 4.66
ROIC/WACC1.16
WACC9.4%
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.
  • CMI has a worse Current ratio (1.77) 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.
  • 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 5B 10B 15B

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

3

3. Growth

3.1 Past

  • CMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.38%, which is quite good.
  • Measured over the past years, CMI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.55% on average per year.
EPS 1Y (TTM)11.38%
EPS 3Y13.59%
EPS 5Y14.55%
EPS Q2Q%13.04%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 16.87% on average per year.
  • CMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.47% yearly.
EPS Next Y12.08%
EPS Next 2Y15.47%
EPS Next 3Y13.51%
EPS Next 5Y16.87%
Revenue Next Year5.58%
Revenue Next 2Y7.07%
Revenue Next 3Y6.81%
Revenue Next 5Y7.47%

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 stable.
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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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • CMI is valuated rather expensively with a Price/Earnings ratio of 24.28.
  • 68.94% of the companies in the same industry are more expensive than CMI, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.92, CMI is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 21.67, the valuation of CMI can be described as rather expensive.
  • 65.91% of the companies in the same industry are more expensive than CMI, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of CMI to the average of the S&P500 Index (27.78), we can say CMI is valued slightly cheaper.
Industry RankSector Rank
PE 24.28
Fwd PE 21.67
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

  • Based on the Enterprise Value to EBITDA ratio, CMI is valued a bit cheaper than the industry average as 61.36% of the companies are valued more expensively.
  • CMI's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 35.01
EV/EBITDA 15.18
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.
  • CMI has a very decent profitability rating, which may justify a higher PE ratio.
  • CMI's earnings are expected to grow with 13.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.01
PEG (5Y)1.67
EPS Next 2Y15.47%
EPS Next 3Y13.51%

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 1.32%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.00, CMI pays a bit more dividend than its industry peers.
  • CMI's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 1.32%

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 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 2Y15.47%
EPS Next 3Y13.51%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

CUMMINS INC

NYSE:CMI (2/6/2026, 8:25:42 PM)

After market: 574.87 -2.86 (-0.5%)

577.73

+37.08 (+6.86%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-04
Inst Owners87.23%
Inst Owner Change-1.03%
Ins Owners0.3%
Ins Owner Change-0.97%
Market Cap79.75B
Revenue(TTM)N/A
Net Income(TTM)2.67B
Analysts76.3
Price Target565.98 (-2.03%)
Short Float %1.33%
Short Ratio2.1
Dividend
Industry RankSector Rank
Dividend Yield 1.32%
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 24.28
Fwd PE 21.67
P/S 2.37
P/FCF 35.01
P/OCF 22.73
P/B 6.61
P/tB 10.64
EV/EBITDA 15.18
EPS(TTM)23.79
EY4.12%
EPS(NY)26.66
Fwd EY4.62%
FCF(TTM)16.5
FCFY2.86%
OCF(TTM)25.42
OCFY4.4%
SpS243.27
BVpS87.39
TBVpS54.31
PEG (NY)2.01
PEG (5Y)1.67
Graham Number216.29
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 4.66
F-Score6
WACC9.4%
ROIC/WACC1.16
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)11.38%
EPS 3Y13.59%
EPS 5Y14.55%
EPS Q2Q%13.04%
EPS Next Y12.08%
EPS Next 2Y15.47%
EPS Next 3Y13.51%
EPS Next 5Y16.87%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.05%
Revenue Next Year5.58%
Revenue Next 2Y7.07%
Revenue Next 3Y6.81%
Revenue Next 5Y7.47%
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 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 6 / 10.


What are the PE and PB ratios of CUMMINS INC (CMI) stock?

The Price/Earnings (PE) ratio for CUMMINS INC (CMI) is 24.28 and the Price/Book (PB) ratio is 6.61.


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%.