CUMMINS INC (1CMI.MI) Fundamental Analysis & Valuation
BIT:1CMI • US2310211063
Current stock price
405.8 EUR
+405.8 (+Infinity%)
Last:
This 1CMI.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. 1CMI.MI Profitability Analysis
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.
- In the past 5 years 1CMI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1CMI (7.93%) is better than 83.49% of its industry peers.
- 1CMI's Return On Equity of 22.12% is amongst the best of the industry. 1CMI outperforms 88.07% of its industry peers.
- 1CMI has a better Return On Invested Capital (10.92%) than 82.57% of its industry peers.
- 1CMI had an Average Return On Invested Capital over the past 3 years of 10.13%. This is in line with the industry average of 8.58%.
- The 3 year average ROIC (10.13%) for 1CMI is below the current ROIC(10.92%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- With a decent Profit Margin value of 7.94%, 1CMI is doing good in the industry, outperforming 79.82% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1CMI has grown nicely.
- 1CMI's Operating Margin of 12.01% is amongst the best of the industry. 1CMI outperforms 80.73% of its industry peers.
- In the last couple of years the Operating Margin of 1CMI has remained more or less at the same level.
- 1CMI has a Gross Margin of 25.94%. This is in the lower half of the industry: 1CMI underperforms 76.15% 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 | 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%
2. 1CMI.MI Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1CMI is still creating some value.
- 1CMI has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1CMI has less shares outstanding
- The debt/assets ratio for 1CMI is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.39 indicates that 1CMI is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.39, 1CMI belongs to the top of the industry, outperforming 85.32% of the companies in the same industry.
- The Debt to FCF ratio of 1CMI is 3.34, which is a good value as it means it would take 1CMI, 3.34 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 1CMI (3.34) is better than 68.81% of its industry peers.
- 1CMI has a Debt/Equity ratio of 0.62. This is a neutral value indicating 1CMI is somewhat dependend on debt financing.
- 1CMI has a worse Debt to Equity ratio (0.62) than 65.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.39 |
ROIC/WACC1.18
WACC9.24%
2.3 Liquidity
- A Current Ratio of 1.77 indicates that 1CMI should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.77, 1CMI is doing good in the industry, outperforming 64.22% of the companies in the same industry.
- A Quick Ratio of 1.11 indicates that 1CMI should not have too much problems paying its short term obligations.
- The Quick ratio of 1CMI (1.11) is better than 62.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 |
3. 1CMI.MI Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 14.51% over the past year.
- 1CMI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.79% yearly.
- The Revenue has decreased by -1.80% in the past year.
- 1CMI 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
- 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. 1CMI.MI Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 20.44, which indicates a rather expensive current valuation of 1CMI.
- Compared to the rest of the industry, the Price/Earnings ratio of 1CMI indicates a somewhat cheap valuation: 1CMI is cheaper than 60.55% of the companies listed in the same industry.
- 1CMI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 18.84, the valuation of 1CMI can be described as rather expensive.
- 1CMI's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of 1CMI to the average of the S&P500 Index (23.13), we can say 1CMI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 18.84 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1CMI.
- 63.30% 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 | 28.59 | ||
| EV/EBITDA | 13.32 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 1CMI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.56
PEG (5Y)2.62
EPS Next 2Y8.38%
EPS Next 3Y11.56%
5. 1CMI.MI Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.71%, 1CMI has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.64, 1CMI has a dividend in line with its industry peers.
- 1CMI's Dividend Yield is comparable with the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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 38.53% 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.
DP38.53%
EPS Next 2Y8.38%
EPS Next 3Y11.56%
1CMI.MI Fundamentals: All Metrics, Ratios and Statistics
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)11-06 2025-11-06/bmo
Earnings (Next)02-02 2026-02-02/amc
Inst Owners87.11%
Inst Owner ChangeN/A
Ins Owners0.31%
Ins Owner ChangeN/A
Market Cap55.92B
Revenue(TTM)33.58B
Net Income(TTM)2.67B
Analysts72.59
Price Target380.86 (-6.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend5.96
Dividend Growth(5Y)7.08%
DP38.53%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)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 | 20.44 | ||
| Fwd PE | 18.84 | ||
| P/S | 1.94 | ||
| P/FCF | 28.59 | ||
| P/OCF | 18.56 | ||
| P/B | 5.4 | ||
| P/tB | 8.69 | ||
| EV/EBITDA | 13.32 |
EPS(TTM)19.85
EY4.89%
EPS(NY)21.54
Fwd EY5.31%
FCF(TTM)14.19
FCFY3.5%
OCF(TTM)21.86
OCFY5.39%
SpS209.23
BVpS75.17
TBVpS46.71
PEG (NY)4.56
PEG (5Y)2.62
Graham Number183.22
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.39 |
F-Score6
WACC9.24%
ROIC/WACC1.18
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)-1.8%
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 1Y17.83%
EBIT growth 3Y18.42%
EBIT growth 5Y7.91%
EBIT Next Year43.48%
EBIT Next 3Y20.19%
EBIT Next 5Y16.76%
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 / 1CMI.MI Fundamental Analysis FAQ
What is the ChartMill fundamental rating of CUMMINS INC (1CMI.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1CMI.MI.
What is the valuation status for 1CMI stock?
ChartMill assigns a valuation rating of 3 / 10 to CUMMINS INC (1CMI.MI). This can be considered as Overvalued.
How profitable is CUMMINS INC (1CMI.MI) stock?
CUMMINS INC (1CMI.MI) has a profitability rating of 8 / 10.
What is the financial health of CUMMINS INC (1CMI.MI) stock?
The financial health rating of CUMMINS INC (1CMI.MI) is 5 / 10.
Can you provide the dividend sustainability for 1CMI stock?
The dividend rating of CUMMINS INC (1CMI.MI) is 5 / 10 and the dividend payout ratio is 38.53%.