CUMMINS INC (CMI) Stock Fundamental Analysis

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

540.65 USD
-64.98 (-10.73%)
At close: Feb 5, 2026
539.99 USD
-0.66 (-0.12%)
After Hours: 2/5/2026, 7:17:49 PM
Fundamental Rating

5

Overall CMI gets a fundamental rating of 5 out of 10. We evaluated CMI against 132 industry peers in the Machinery industry. CMI scores excellent on profitability, but 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. With these ratings, CMI could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

7

1. Profitability

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 1B 2B 3B

1.2 Ratios

  • CMI has a better Return On Assets (7.93%) than 74.24% of its industry peers.
  • The Return On Equity of CMI (22.12%) is better than 90.91% of its industry peers.
  • CMI's Return On Invested Capital of 10.92% is fine compared to the rest of the industry. CMI outperforms 76.52% of its industry peers.
  • CMI had an Average Return On Invested Capital over the past 3 years of 10.13%. This is in line with the industry average of 10.37%.
  • The 3 year average ROIC (10.13%) for CMI is below the current ROIC(10.92%), indicating increased profibility in the last year.
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.
  • The Operating Margin of CMI (12.01%) is better than 61.36% of its industry peers.
  • CMI's Operating Margin has been stable in the last couple of years.
  • CMI's Gross Margin of 25.94% is on the low side compared to the rest of the industry. CMI is outperformed by 62.12% 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 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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CMI is still creating some value.
  • Compared to 1 year ago, CMI has less shares outstanding
  • 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 4.91. 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 4.91, CMI is in the better half of the industry, outperforming 73.48% 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.
  • The Debt to FCF ratio of CMI (3.34) is better than 65.15% of its industry peers.
  • A Debt/Equity ratio of 0.62 indicates that CMI is somewhat dependend on debt financing.
  • CMI has a Debt to Equity ratio (0.62) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.34
Altman-Z 4.91
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.
  • 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.
  • 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 14.51% over the past year.
  • Measured over the past 5 years, CMI shows a small growth in Earnings Per Share. The EPS has been growing by 7.79% on average per year.
  • CMI shows a decrease in Revenue. In the last year, the revenue decreased by -1.80%.
  • CMI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.67% yearly.
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

  • The Earnings Per Share is expected to grow by 15.75% on average over the next years. This is quite good.
  • Based on estimates for the next years, CMI will show a small growth in Revenue. The Revenue will grow by 5.43% on average per year.
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

  • 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 10 20 30 40

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 23.38 indicates a rather expensive valuation of CMI.
  • Compared to the rest of the industry, the Price/Earnings ratio of CMI is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of CMI to the average of the S&P500 Index (27.67), we can say CMI is valued inline with the index average.
  • CMI is valuated rather expensively with a Price/Forward Earnings ratio of 20.32.
  • The rest of the industry has a similar Price/Forward Earnings ratio as CMI.
  • The average S&P500 Price/Forward Earnings ratio is at 27.20. CMI is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 23.38
Fwd PE 20.32
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.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as CMI.
Industry RankSector Rank
P/FCF 32.76
EV/EBITDA 16.93
CMI Per share dataCMI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

4.3 Compensation for Growth

  • 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.
  • A more expensive valuation may be justified as CMI's earnings are expected to grow with 13.98% in the coming years.
PEG (NY)2.57
PEG (5Y)3
EPS Next 2Y11.6%
EPS Next 3Y13.98%

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 1.37%.
  • CMI's Dividend Yield is rather good when compared to the industry average which is at 1.00. CMI pays more dividend than 80.30% of the companies in the same industry.
  • CMI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
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 been paying a dividend for at least 10 years, so it has 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

  • CMI pays out 38.53% of its income as dividend. This is a sustainable payout ratio.
  • CMI's earnings are growing more than its dividend. This makes the dividend growth 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

More info and screens

Find the best dividend stocksShow peers with best dividend

CUMMINS INC

NYSE:CMI (2/5/2026, 7:17:49 PM)

After market: 539.99 -0.66 (-0.12%)

540.65

-64.98 (-10.73%)

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 Cap74.63B
Revenue(TTM)33.58B
Net Income(TTM)2.67B
Analysts76.3
Price Target548.54 (1.46%)
Short Float %1.33%
Short Ratio2.1
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 23.38
Fwd PE 20.32
P/S 2.22
P/FCF 32.76
P/OCF 21.27
P/B 6.19
P/tB 9.95
EV/EBITDA 16.93
EPS(TTM)23.12
EY4.28%
EPS(NY)26.6
Fwd EY4.92%
FCF(TTM)16.5
FCFY3.05%
OCF(TTM)25.42
OCFY4.7%
SpS243.27
BVpS87.39
TBVpS54.31
PEG (NY)2.57
PEG (5Y)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 4.91
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 23.38 and the Price/Book (PB) ratio is 6.19.


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%.