CUMMINS INC (CMI) Fundamental Analysis & Valuation

NYSE:CMI • US2310211063

Current stock price

623.01 USD
+14.12 (+2.32%)
Last:

This CMI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. CMI Profitability Analysis

1.1 Basic Checks

  • In the past year CMI was profitable.
  • In the past year CMI had a positive cash flow from operations.
  • Each year in the past 5 years CMI has been profitable.
  • Each year in the past 5 years CMI 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

  • With a decent Return On Assets value of 8.36%, CMI is doing good in the industry, outperforming 77.86% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 23.02%, CMI belongs to the top of the industry, outperforming 89.31% of the companies in the same industry.
  • CMI has a Return On Invested Capital of 12.12%. This is amongst the best in the industry. CMI outperforms 80.92% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CMI is above the industry average of 10.00%.
Industry RankSector Rank
ROA 8.36%
ROE 23.02%
ROIC 12.12%
ROA(3y)7.72%
ROA(5y)7.85%
ROE(3y)23.25%
ROE(5y)23.77%
ROIC(3y)12.81%
ROIC(5y)11.69%
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

  • The Profit Margin of CMI (8.44%) is better than 70.23% 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 (11.45%) than 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 25.29%. This is in the lower half of the industry: CMI underperforms 65.65% of its industry peers.
  • In the last couple of years the Gross Margin of CMI has remained more or less at the same level.
Industry RankSector Rank
OM 11.45%
PM (TTM) 8.44%
GM 25.29%
OM growth 3Y7.51%
OM growth 5Y5.11%
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. CMI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CMI is creating some value.
  • The number of shares outstanding for CMI has been increased compared to 1 year ago.
  • 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 73.28% of its industry peers.
  • The Debt to FCF ratio of CMI is 3.17, which is a good value as it means it would take CMI, 3.17 years of fcf income to pay off all of its debts.
  • CMI has a better Debt to FCF ratio (3.17) than 67.94% of its industry peers.
  • A Debt/Equity ratio of 0.60 indicates that CMI is somewhat dependend on debt financing.
  • CMI's Debt to Equity ratio of 0.60 is on the low side compared to the rest of the industry. CMI is outperformed by 61.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 3.17
Altman-Z 4.89
ROIC/WACC1.17
WACC10.36%
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 1.76. 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 worse Current ratio (1.76) than 64.12% of its industry peers.
  • CMI has a Quick Ratio of 1.16. 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 1.16 is in line compared to the rest of the industry. CMI outperforms 42.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.16
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. CMI Growth Analysis

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.
  • Measured over the past years, CMI shows a quite strong growth in Revenue. The Revenue has been growing by 11.19% on average per year.
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

  • The Earnings Per Share is expected to grow by 16.27% on average over the next years. This is quite good.
  • 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 Y18.32%
EPS Next 2Y18.66%
EPS Next 3Y16.8%
EPS Next 5Y16.27%
Revenue Next Year7.12%
Revenue Next 2Y7.83%
Revenue Next 3Y7.77%
Revenue Next 5Y8.57%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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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3

4. CMI Valuation Analysis

4.1 Price/Earnings Ratio

  • CMI is valuated quite expensively with a Price/Earnings ratio of 28.00.
  • CMI's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.53. CMI is around the same levels.
  • CMI is valuated rather expensively with a Price/Forward Earnings ratio of 23.67.
  • The rest of the industry has a similar Price/Forward Earnings ratio as CMI.
  • The average S&P500 Price/Forward Earnings ratio is at 37.95. CMI is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 28
Fwd PE 23.67
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

  • CMI's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as CMI.
Industry RankSector Rank
P/FCF 36.1
EV/EBITDA 17.48
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.
  • CMI's earnings are expected to grow with 16.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.53
PEG (5Y)2.15
EPS Next 2Y18.66%
EPS Next 3Y16.8%

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

7

5. CMI Dividend Analysis

5.1 Amount

  • CMI has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
  • CMI's Dividend Yield is a higher than the industry average which is at 1.08.
  • CMI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.31%

5.2 History

  • The dividend of CMI is nicely growing with an annual growth rate of 7.87%!
  • 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)7.87%
Div Incr Years20
Div Non Decr Years21
CMI Yearly Dividends per shareCMI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • 37.11% of the earnings are spent on dividend by CMI. This is a low number and sustainable payout ratio.
  • The dividend of CMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.11%
EPS Next 2Y18.66%
EPS Next 3Y16.8%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

CMI Fundamentals: All Metrics, Ratios and Statistics

CUMMINS INC

NYSE:CMI (4/17/2026, 10:13:08 AM)

623.01

+14.12 (+2.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-05
Inst Owners87.31%
Inst Owner Change0.02%
Ins Owners0.29%
Ins Owner Change3.86%
Market Cap86.14B
Revenue(TTM)33.67B
Net Income(TTM)2.84B
Analysts74.81
Price Target631.39 (1.35%)
Short Float %1.59%
Short Ratio2.26
Dividend
Industry RankSector Rank
Dividend Yield 1.31%
Yearly Dividend7.66
Dividend Growth(5Y)7.87%
DP37.11%
Div Incr Years20
Div Non Decr Years21
Ex-Date02-20
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.11%
Min EPS beat(2)-17.22%
Max EPS beat(2)15.01%
EPS beat(4)3
Avg EPS beat(4)10.55%
Min EPS beat(4)-17.22%
Max EPS beat(4)24.03%
EPS beat(8)6
Avg EPS beat(8)9.81%
EPS beat(12)7
Avg EPS beat(12)6.12%
EPS beat(16)9
Avg EPS beat(16)3.34%
Revenue beat(2)2
Avg Revenue beat(2)3.64%
Min Revenue beat(2)3.3%
Max Revenue beat(2)3.98%
Revenue beat(4)3
Avg Revenue beat(4)1.88%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)3.98%
Revenue beat(8)6
Avg Revenue beat(8)1.87%
Revenue beat(12)10
Avg Revenue beat(12)2.19%
Revenue beat(16)14
Avg Revenue beat(16)2.82%
PT rev (1m)0.83%
PT rev (3m)16.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.43%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)3.34%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.6%
Valuation
Industry RankSector Rank
PE 28
Fwd PE 23.67
P/S 2.56
P/FCF 36.1
P/OCF 23.79
P/B 6.98
P/tB 10.82
EV/EBITDA 17.48
EPS(TTM)22.25
EY3.57%
EPS(NY)26.33
Fwd EY4.23%
FCF(TTM)17.26
FCFY2.77%
OCF(TTM)26.19
OCFY4.2%
SpS243.53
BVpS89.32
TBVpS57.56
PEG (NY)1.53
PEG (5Y)2.15
Graham Number211.458 (-66.06%)
Profitability
Industry RankSector Rank
ROA 8.36%
ROE 23.02%
ROCE 15.81%
ROIC 12.12%
ROICexc 14.16%
ROICexgc 17.81%
OM 11.45%
PM (TTM) 8.44%
GM 25.29%
FCFM 7.09%
ROA(3y)7.72%
ROA(5y)7.85%
ROE(3y)23.25%
ROE(5y)23.77%
ROIC(3y)12.81%
ROIC(5y)11.69%
ROICexc(3y)14.66%
ROICexc(5y)13.52%
ROICexgc(3y)19.32%
ROICexgc(5y)17.59%
ROCE(3y)17.34%
ROCE(5y)15.93%
ROICexgc growth 3Y7.12%
ROICexgc growth 5Y6.4%
ROICexc growth 3Y9.89%
ROICexc growth 5Y5.61%
OM growth 3Y7.51%
OM growth 5Y5.11%
PM growth 3Y3.29%
PM growth 5Y-1.33%
GM growth 3Y2.38%
GM growth 5Y0.83%
F-Score5
Asset Turnover0.99
Health
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 3.17
Debt/EBITDA 1.5
Cap/Depr 111.77%
Cap/Sales 3.67%
Interest Coverage 12.51
Cash Conversion 73.02%
Profit Quality 83.93%
Current Ratio 1.76
Quick Ratio 1.16
Altman-Z 4.89
F-Score5
WACC10.36%
ROIC/WACC1.17
Cap/Depr(3y)114.55%
Cap/Depr(5y)115.84%
Cap/Sales(3y)3.59%
Cap/Sales(5y)3.46%
Profit Quality(3y)155.19%
Profit Quality(5y)116.63%
High Growth Momentum
Growth
EPS 1Y (TTM)4.17%
EPS 3Y11.09%
EPS 5Y13.03%
EPS Q2Q%-16.93%
EPS Next Y18.32%
EPS Next 2Y18.66%
EPS Next 3Y16.8%
EPS Next 5Y16.27%
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y6.25%
Revenue growth 5Y11.19%
Sales Q2Q%1.05%
Revenue Next Year7.12%
Revenue Next 2Y7.83%
Revenue Next 3Y7.77%
Revenue Next 5Y8.57%
EBIT growth 1Y5.19%
EBIT growth 3Y14.23%
EBIT growth 5Y16.87%
EBIT Next Year42.61%
EBIT Next 3Y20.56%
EBIT Next 5Y17.49%
FCF growth 1Y755.2%
FCF growth 3Y31.64%
FCF growth 5Y2.13%
OCF growth 1Y143.51%
OCF growth 3Y22.66%
OCF growth 5Y5.87%

CUMMINS INC / CMI Fundamental Analysis 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 for CMI stock?

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


Can you provide the profitability details for CUMMINS INC?

CUMMINS INC (CMI) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for CMI stock?

The Earnings per Share (EPS) of CUMMINS INC (CMI) is expected to grow by 18.32% in the next year.


How sustainable is the dividend of CUMMINS INC (CMI) stock?

The dividend rating of CUMMINS INC (CMI) is 7 / 10 and the dividend payout ratio is 37.11%.