CUMMINS INC (CMI) Stock Fundamental Analysis

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

588.07 USD
-13.31 (-2.21%)
At close: Feb 10, 2026
588.07 USD
0 (0%)
After Hours: 2/10/2026, 4:55:29 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 131 industry peers in the Machinery industry. While CMI has a great profitability rating, there are some minor concerns on its financial health. CMI is quite expensive at the moment. It does show a decent growth rate. 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.
  • 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.
  • The Return On Equity of CMI (22.12%) is better than 91.60% of its industry peers.
  • The Return On Invested Capital of CMI (12.78%) is better than 80.92% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CMI is above the industry average of 10.30%.
  • 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's Profit Margin of 7.94% is fine compared to the rest of the industry. CMI outperforms 66.41% of its industry peers.
  • CMI's Profit Margin has been stable in the last couple of years.
  • CMI has a better Operating Margin (12.01%) 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 25.94%. This is in the lower half of the industry: CMI underperforms 62.60% 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 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.
  • 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.
  • 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 4.89 indicates that CMI is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.89, CMI is doing good in the industry, outperforming 74.05% of the companies in the same industry.
  • 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.
  • CMI has a Debt to FCF ratio of 3.34. This is in the better half of the industry: CMI outperforms 65.65% 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 doing worse than 60.31% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.34
Altman-Z 4.89
ROIC/WACC1.36
WACC9.39%
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.
  • Looking at the Current ratio, with a value of 1.77, CMI is doing worse than 63.36% of the companies in the same industry.
  • A Quick Ratio of 1.11 indicates that CMI should not have too much problems paying its short term obligations.
  • CMI has a Quick ratio (1.11) which is comparable to the rest of the 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 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

  • 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.
  • The Earnings Per Share has been growing by 14.55% on average over the past years. This is quite good.
  • CMI shows a decrease in Revenue. In the last year, the revenue decreased by -1.27%.
  • The Revenue has been growing by 11.19% on average over the past years. This is quite good.
EPS 1Y (TTM)11.38%
EPS 3Y13.59%
EPS 5Y14.55%
EPS Q2Q%13.04%
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 16.87% yearly.
  • 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.
  • 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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 24.72, CMI is valued on the expensive side.
  • 62.60% of the companies in the same industry are more expensive than CMI, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 28.06. CMI is around the same levels.
  • With a Price/Forward Earnings ratio of 22.05, CMI is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CMI is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.86, CMI is valued a bit cheaper.
Industry RankSector Rank
PE 24.72
Fwd PE 22.05
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 35.64
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

  • 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.
  • A more expensive valuation may be justified as CMI's earnings are expected to grow with 13.51% in the coming years.
PEG (NY)2.05
PEG (5Y)1.7
EPS Next 2Y15.47%
EPS Next 3Y13.51%

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

7

5. Dividend

5.1 Amount

  • CMI has a Yearly Dividend Yield of 1.38%. Purely for dividend investing, there may be better candidates out there.
  • CMI's Dividend Yield is rather good when compared to the industry average which is at 1.15. CMI pays more dividend than 80.15% of the companies in the same industry.
  • CMI's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.38%

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

  • 38.53% of the earnings are spent on dividend by CMI. This is a low number and sustainable payout ratio.
  • CMI's earnings are growing more than its dividend. This makes the dividend growth 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 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 (2/10/2026, 4:55:29 PM)

After market: 588.07 0 (0%)

588.07

-13.31 (-2.21%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-04
Inst Owners87.23%
Inst Owner Change0.48%
Ins Owners0.3%
Ins Owner Change-0.91%
Market Cap81.18B
Revenue(TTM)33.67B
Net Income(TTM)2.67B
Analysts76.3
Price Target565.98 (-3.76%)
Short Float %1.33%
Short Ratio2.1
Dividend
Industry RankSector Rank
Dividend Yield 1.38%
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)0.2%
EPS NQ rev (3m)4.94%
EPS NY rev (1m)0.05%
EPS NY rev (3m)4.48%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.16%
Valuation
Industry RankSector Rank
PE 24.72
Fwd PE 22.05
P/S 2.42
P/FCF 35.64
P/OCF 23.13
P/B 6.73
P/tB 10.83
EV/EBITDA 16.81
EPS(TTM)23.79
EY4.05%
EPS(NY)26.66
Fwd EY4.53%
FCF(TTM)16.5
FCFY2.81%
OCF(TTM)25.42
OCFY4.32%
SpS243.27
BVpS87.39
TBVpS54.31
PEG (NY)2.05
PEG (5Y)1.7
Graham Number216.29
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
WACC9.39%
ROIC/WACC1.36
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)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)-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 5Y7.47%
EBIT growth 1Y17.83%
EBIT growth 3Y13.98%
EBIT growth 5Y16.72%
EBIT Next Year42.23%
EBIT Next 3Y21.7%
EBIT Next 5Y20.62%
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 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 24.72 and the Price/Book (PB) ratio is 6.73.


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%.