CUMMINS INC (CMI) Stock Fundamental Analysis

NYSE:CMI • US2310211063

601.01 USD
+12.22 (+2.08%)
At close: Feb 13, 2026
605 USD
+3.99 (+0.66%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

CMI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. While CMI has a great profitability rating, there are some minor concerns on its financial health. CMI has a correct valuation and a medium 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

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

  • CMI has a better Return On Assets (7.93%) than 75.57% of its industry peers.
  • Looking at the Return On Equity, with a value of 22.12%, CMI belongs to the top of the industry, outperforming 91.60% of the companies in the same industry.
  • The Return On Invested Capital of CMI (12.78%) is better than 80.92% of its industry peers.
  • CMI had an Average Return On Invested Capital over the past 3 years of 12.78%. This is above the industry average of 10.21%.
  • The 3 year average ROIC (12.78%) for CMI is below the current ROIC(12.78%), indicating increased profibility in the last year.
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

  • The Profit Margin of CMI (7.94%) is better than 66.41% of its industry peers.
  • CMI's Profit Margin has been stable in the last couple of years.
  • With a decent Operating Margin value of 12.01%, CMI is doing good in the industry, outperforming 60.31% of the companies in the same industry.
  • CMI's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 25.94%, CMI is doing worse than 62.60% of the companies in the same industry.
  • 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

More info and screens

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.
  • CMI has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CMI has less shares outstanding
  • Compared to 1 year ago, CMI has an improved debt to assets ratio.
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 4.84 indicates that CMI is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.84, CMI is doing good in the industry, outperforming 74.05% of the companies in the same industry.
  • CMI has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as CMI would need 3.34 years to pay back of all of its debts.
  • The Debt to FCF ratio of CMI (3.34) is better than 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.
  • CMI has a worse Debt to Equity ratio (0.62) than 61.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.34
Altman-Z 4.84
ROIC/WACC1.38
WACC9.23%
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.
  • CMI's Current ratio of 1.77 is on the low side compared to the rest of the industry. CMI is outperformed by 63.36% 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 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 small growth in Earnings Per Share. In the last year, the EPS has grown by 4.17%.
  • 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.
  • CMI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.19% yearly.
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

  • CMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.27% yearly.
  • 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 Y19.84%
EPS Next 2Y19.4%
EPS Next 3Y16.07%
EPS Next 5Y16.27%
Revenue Next Year5.58%
Revenue Next 2Y7.07%
Revenue Next 3Y6.81%
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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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.01, the valuation of CMI can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of CMI is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 27.97, CMI is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 22.54, the valuation of CMI can be described as rather expensive.
  • CMI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CMI is cheaper than 61.07% of the companies in the same industry.
  • CMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 27.01
Fwd PE 22.54
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 is on the same level as the industry average.
  • CMI's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 36.44
EV/EBITDA 16.48
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.
  • 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 16.07% in the coming years.
PEG (NY)1.36
PEG (5Y)2.07
EPS Next 2Y19.4%
EPS Next 3Y16.07%

More info and screens

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

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.36%, CMI has a reasonable but not impressive dividend return.
  • CMI's Dividend Yield is a higher than the industry average which is at 1.12.
  • Compared to the average S&P500 Dividend Yield of 1.84, CMI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.36%

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

  • 38.53% 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.
DP38.53%
EPS Next 2Y19.4%
EPS Next 3Y16.07%
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

CUMMINS INC

NYSE:CMI (2/13/2026, 8:04:00 PM)

After market: 605 +3.99 (+0.66%)

601.01

+12.22 (+2.08%)

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 Cap83.00B
Revenue(TTM)33.67B
Net Income(TTM)2.67B
Analysts74.81
Price Target565.98 (-5.83%)
Short Float %1.33%
Short Ratio2.1
Dividend
Industry RankSector Rank
Dividend Yield 1.36%
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 27.01
Fwd PE 22.54
P/S 2.47
P/FCF 36.44
P/OCF 23.65
P/B 6.88
P/tB 11.07
EV/EBITDA 16.48
EPS(TTM)22.25
EY3.7%
EPS(NY)26.66
Fwd EY4.44%
FCF(TTM)16.5
FCFY2.74%
OCF(TTM)25.41
OCFY4.23%
SpS243.16
BVpS87.36
TBVpS54.29
PEG (NY)1.36
PEG (5Y)2.07
Graham Number209.13
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 4.84
F-Score6
WACC9.23%
ROIC/WACC1.38
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)4.17%
EPS 3Y11.09%
EPS 5Y13.03%
EPS Q2Q%-16.93%
EPS Next Y19.84%
EPS Next 2Y19.4%
EPS Next 3Y16.07%
EPS Next 5Y16.27%
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 5Y8.57%
EBIT growth 1Y17.83%
EBIT growth 3Y13.98%
EBIT growth 5Y16.72%
EBIT Next Year42.23%
EBIT Next 3Y21.7%
EBIT Next 5Y17.49%
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 6 / 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 7 / 10.


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

The Price/Earnings (PE) ratio for CUMMINS INC (CMI) is 27.01 and the Price/Book (PB) ratio is 6.88.


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%.