CUMMINS INC (CMI) Fundamental Analysis & Valuation

NYSE:CMI • US2310211063

Current stock price

642.45 USD
-18.33 (-2.77%)
At close:
642.45 USD
0 (0%)
After Hours:

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

  • CMI has a Return On Assets of 8.36%. This is in the better half of the industry: CMI outperforms 77.86% of its industry peers.
  • CMI has a Return On Equity of 23.02%. This is amongst the best in the industry. CMI outperforms 89.31% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 12.12%, CMI belongs to the top of the industry, outperforming 80.92% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CMI is above the industry average of 10.06%.
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

  • With a decent Profit Margin value of 8.44%, CMI is doing good in the industry, outperforming 69.47% 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.
  • Looking at the Operating Margin, with a value of 11.45%, CMI is in the better half of the industry, outperforming 60.31% of the companies in the same industry.
  • CMI's Operating Margin has improved in the last couple of years.
  • CMI's Gross Margin of 25.29% is on the low side compared to the rest of the industry. CMI is outperformed by 66.41% of its industry peers.
  • CMI's Gross Margin has been stable in the last couple of years.
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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5

2. CMI Health Analysis

2.1 Basic Checks

  • CMI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, CMI has more shares outstanding
  • CMI has less shares outstanding than it did 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

  • CMI has an Altman-Z score of 5.09. This indicates that CMI is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.09, CMI is in the better half of the industry, outperforming 75.57% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of CMI (3.17) is better than 67.94% of its industry peers.
  • A Debt/Equity ratio of 0.60 indicates that CMI is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.60, CMI is doing worse than 61.83% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 3.17
Altman-Z 5.09
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

  • A Current Ratio of 1.76 indicates that CMI should not have too much problems paying its short term obligations.
  • CMI's Current ratio of 1.76 is on the low side compared to the rest of the industry. CMI is outperformed by 64.12% of its industry peers.
  • A Quick Ratio of 1.16 indicates that CMI should not have too much problems paying its short term obligations.
  • CMI has a Quick ratio (1.16) which is in line with 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

  • CMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.17%.
  • 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.
  • Looking at the last year, CMI shows a decrease in Revenue. The Revenue has decreased by -1.27% in the last year.
  • The Revenue has been growing by 11.19% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, CMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.27% on average per year.
  • Based on estimates for the next years, CMI will show a small growth in Revenue. The Revenue will grow by 7.41% on average per year.
EPS Next Y18.32%
EPS Next 2Y18.66%
EPS Next 3Y16.8%
EPS Next 5Y16.27%
Revenue Next Year7.14%
Revenue Next 2Y7.86%
Revenue Next 3Y7.83%
Revenue Next 5Y7.41%

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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3

4. CMI Valuation Analysis

4.1 Price/Earnings Ratio

  • CMI is valuated quite expensively with a Price/Earnings ratio of 28.87.
  • The rest of the industry has a similar Price/Earnings ratio as CMI.
  • The average S&P500 Price/Earnings ratio is at 26.91. CMI is around the same levels.
  • A Price/Forward Earnings ratio of 24.40 indicates a rather expensive valuation of CMI.
  • CMI's Price/Forward 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/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.87
Fwd PE 24.4
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CMI is on the same level as its industry peers.
  • 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 37.23
EV/EBITDA 18.93
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.
  • 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 16.80% in the coming years.
PEG (NY)1.58
PEG (5Y)2.22
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

  • With a Yearly Dividend Yield of 1.22%, CMI has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.13, CMI pays a bit more dividend than its industry peers.
  • CMI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.22%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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

  • CMI pays out 37.11% 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.
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

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CMI Fundamentals: All Metrics, Ratios and Statistics

CUMMINS INC

NYSE:CMI (4/28/2026, 9:26:20 PM)

After market: 642.45 0 (0%)

642.45

-18.33 (-2.77%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-05
Inst Owners87.31%
Inst Owner Change0.55%
Ins Owners0.29%
Ins Owner Change3.86%
Market Cap88.83B
Revenue(TTM)33.67B
Net Income(TTM)2.84B
Analysts74.81
Price Target631.39 (-1.72%)
Short Float %1.48%
Short Ratio2.41
Dividend
Industry RankSector Rank
Dividend Yield 1.22%
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)15.1%
EPS NQ rev (1m)-1.58%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)3.27%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.42%
Valuation
Industry RankSector Rank
PE 28.87
Fwd PE 24.4
P/S 2.64
P/FCF 37.23
P/OCF 24.53
P/B 7.19
P/tB 11.16
EV/EBITDA 18.93
EPS(TTM)22.25
EY3.46%
EPS(NY)26.33
Fwd EY4.1%
FCF(TTM)17.26
FCFY2.69%
OCF(TTM)26.19
OCFY4.08%
SpS243.53
BVpS89.32
TBVpS57.56
PEG (NY)1.58
PEG (5Y)2.22
Graham Number211.458 (-67.09%)
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 5.09
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 Year7.14%
Revenue Next 2Y7.86%
Revenue Next 3Y7.83%
Revenue Next 5Y7.41%
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%.