CUMMINS INC (1CMI.MI) Stock Fundamental Analysis
Europe - BIT:1CMI - US2310211063 - Common Stock
405.8 EUR
+405.8 (+Infinity%)
Overall 1CMI gets a fundamental rating of 6 out of 10. We evaluated 1CMI against 109 industry peers in the Machinery industry. 1CMI scores excellent on profitability, but there are some minor concerns on its financial health. 1CMI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1CMI was profitable.
1CMI had a positive operating cash flow in the past year.
1CMI had positive earnings in each of the past 5 years.
1CMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1CMI (8.58%) is better than 83.49% of its industry peers.
Looking at the Return On Equity, with a value of 24.95%, 1CMI belongs to the top of the industry, outperforming 90.83% of the companies in the same industry.
1CMI has a better Return On Invested Capital (11.02%) than 82.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1CMI is in line with the industry average of 8.90%.
The 3 year average ROIC (10.13%) for 1CMI is below the current ROIC(11.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.58% | ||
| ROE | 24.95% | ||
| ROIC | 11.02% |
ROA(3y)7.3%
ROA(5y)7.76%
ROE(3y)23.56%
ROE(5y)23.61%
ROIC(3y)10.13%
ROIC(5y)9.3%
1.3 Margins
1CMI's Profit Margin of 8.72% is amongst the best of the industry. 1CMI outperforms 81.65% of its industry peers.
1CMI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.96%, 1CMI belongs to the best of the industry, outperforming 80.73% of the companies in the same industry.
In the last couple of years the Operating Margin of 1CMI has remained more or less at the same level.
1CMI's Gross Margin of 25.96% is on the low side compared to the rest of the industry. 1CMI is outperformed by 73.39% of its industry peers.
In the last couple of years the Gross Margin of 1CMI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.96% | ||
| PM (TTM) | 8.72% | ||
| GM | 25.96% |
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%
2. Health
2.1 Basic Checks
1CMI 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, 1CMI has less shares outstanding
1CMI has less shares outstanding than it did 5 years ago.
1CMI has a worse debt/assets ratio than last year.
2.2 Solvency
1CMI has an Altman-Z score of 4.24. This indicates that 1CMI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.24, 1CMI belongs to the best of the industry, outperforming 84.40% of the companies in the same industry.
The Debt to FCF ratio of 1CMI is 4.91, which is a neutral value as it means it would take 1CMI, 4.91 years of fcf income to pay off all of its debts.
1CMI has a Debt to FCF ratio of 4.91. This is comparable to the rest of the industry: 1CMI outperforms 58.72% of its industry peers.
1CMI has a Debt/Equity ratio of 0.64. This is a neutral value indicating 1CMI is somewhat dependend on debt financing.
1CMI has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: 1CMI underperforms 65.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 4.24 |
ROIC/WACC1.2
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.64 indicates that 1CMI should not have too much problems paying its short term obligations.
1CMI has a Current ratio (1.64) which is comparable to the rest of the industry.
1CMI has a Quick Ratio of 1.03. This is a normal value and indicates that 1CMI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.03, 1CMI perfoms like the industry average, outperforming 55.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
1CMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.51%, which is quite good.
Measured over the past 5 years, 1CMI shows a small growth in Earnings Per Share. The EPS has been growing by 7.79% on average per year.
1CMI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
Measured over the past years, 1CMI shows a small growth in Revenue. The Revenue has been growing by 7.67% on average per year.
EPS 1Y (TTM)14.51%
EPS 3Y13.63%
EPS 5Y7.79%
EPS Q2Q%-4.61%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y12.39%
Revenue growth 5Y7.67%
Sales Q2Q%-1.64%
3.2 Future
1CMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.18% yearly.
The Revenue is expected to grow by 6.35% on average over the next years.
EPS Next Y4.49%
EPS Next 2Y8.38%
EPS Next 3Y11.56%
EPS Next 5Y13.18%
Revenue Next Year-2.35%
Revenue Next 2Y0.85%
Revenue Next 3Y3.41%
Revenue Next 5Y6.35%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.39 indicates a rather expensive valuation of 1CMI.
Based on the Price/Earnings ratio, 1CMI is valued a bit cheaper than the industry average as 62.39% of the companies are valued more expensively.
1CMI is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.79, which indicates a rather expensive current valuation of 1CMI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CMI is on the same level as its industry peers.
1CMI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1CMI is on the same level as its industry peers.
67.89% of the companies in the same industry are cheaper than 1CMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.33 | ||
| EV/EBITDA | 13.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1CMI may justify a higher PE ratio.
PEG (NY)4.54
PEG (5Y)2.62
EPS Next 2Y8.38%
EPS Next 3Y11.56%
5. Dividend
5.1 Amount
1CMI has a Yearly Dividend Yield of 1.73%.
1CMI's Dividend Yield is comparable with the industry average which is at 2.60.
1CMI's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
On average, the dividend of 1CMI grows each year by 7.08%, which is quite nice.
Dividend Growth(5Y)7.08%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1CMI pays out 34.07% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1CMI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.07%
EPS Next 2Y8.38%
EPS Next 3Y11.56%
BIT:1CMI (11/6/2025, 7:00:00 PM)
405.8
+405.8 (+Infinity%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.11%
Inst Owner ChangeN/A
Ins Owners0.31%
Ins Owner ChangeN/A
Market Cap55.92B
Revenue(TTM)34.10B
Net Income(TTM)2.94B
Analysts72.59
Price Target382.92 (-5.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend6
Dividend Growth(5Y)7.08%
DP34.07%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.2%
Min EPS beat(2)20.37%
Max EPS beat(2)24.03%
EPS beat(4)4
Avg EPS beat(4)18.47%
Min EPS beat(4)8.66%
Max EPS beat(4)24.03%
EPS beat(8)5
Avg EPS beat(8)8.17%
EPS beat(12)6
Avg EPS beat(12)2.56%
EPS beat(16)8
Avg EPS beat(16)2.18%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)1.44%
Revenue beat(4)3
Avg Revenue beat(4)1.2%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)3.63%
Revenue beat(8)6
Avg Revenue beat(8)1.69%
Revenue beat(12)10
Avg Revenue beat(12)2.7%
Revenue beat(16)13
Avg Revenue beat(16)2.41%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 18.79 | ||
| P/S | 1.93 | ||
| P/FCF | 39.33 | ||
| P/OCF | 22.84 | ||
| P/B | 5.51 | ||
| P/tB | 9.33 | ||
| EV/EBITDA | 13.4 |
EPS(TTM)19.9
EY4.9%
EPS(NY)21.59
Fwd EY5.32%
FCF(TTM)10.32
FCFY2.54%
OCF(TTM)17.76
OCFY4.38%
SpS210.62
BVpS73.64
TBVpS43.48
PEG (NY)4.54
PEG (5Y)2.62
Graham Number181.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.58% | ||
| ROE | 24.95% | ||
| ROCE | 16.84% | ||
| ROIC | 11.02% | ||
| ROICexc | 12.59% | ||
| ROICexgc | 16.23% | ||
| OM | 11.96% | ||
| PM (TTM) | 8.72% | ||
| GM | 25.96% | ||
| FCFM | 4.9% |
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-Score5
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.91 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 109.86% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.57% | ||
| Profit Quality | 56.17% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.24 |
F-Score5
WACC9.19%
ROIC/WACC1.2
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 Y4.49%
EPS Next 2Y8.38%
EPS Next 3Y11.56%
EPS Next 5Y13.18%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y12.39%
Revenue growth 5Y7.67%
Sales Q2Q%-1.64%
Revenue Next Year-2.35%
Revenue Next 2Y0.85%
Revenue Next 3Y3.41%
Revenue Next 5Y6.35%
EBIT growth 1Y22.51%
EBIT growth 3Y18.42%
EBIT growth 5Y7.91%
EBIT Next Year43.48%
EBIT Next 3Y20.19%
EBIT Next 5Y16.76%
FCF growth 1Y47.24%
FCF growth 3Y-42.53%
FCF growth 5Y-35.01%
OCF growth 1Y30.64%
OCF growth 3Y-12.97%
OCF growth 5Y-14.11%
CUMMINS INC / 1CMI.MI FAQ
What is the ChartMill fundamental rating of CUMMINS INC (1CMI.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1CMI.MI.
Can you provide the valuation status for CUMMINS INC?
ChartMill assigns a valuation rating of 3 / 10 to CUMMINS INC (1CMI.MI). This can be considered as Overvalued.
What is the profitability of 1CMI stock?
CUMMINS INC (1CMI.MI) has a profitability rating of 8 / 10.
What is the expected EPS growth for CUMMINS INC (1CMI.MI) stock?
The Earnings per Share (EPS) of CUMMINS INC (1CMI.MI) is expected to grow by 4.49% in the next year.
How sustainable is the dividend of CUMMINS INC (1CMI.MI) stock?
The dividend rating of CUMMINS INC (1CMI.MI) is 5 / 10 and the dividend payout ratio is 34.07%.