CUMMINS INC (CMI) Stock Fundamental Analysis
NYSE:CMI • US2310211063
593.28 USD
-3.63 (-0.61%)
At close: Feb 20, 2026
593.55 USD
+0.27 (+0.05%)
After Hours: 2/20/2026, 8:24:58 PM
CMI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. While CMI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CMI is not valued too expensively and it also shows a decent growth rate. CMI also has an excellent dividend rating. These ratings could make CMI a good candidate for dividend investing.
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.
- In the past 5 years CMI always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 8.36%, CMI is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- CMI's Return On Equity of 23.02% is amongst the best of the industry. CMI outperforms 91.54% of its industry peers.
- CMI's Return On Invested Capital of 12.12% is amongst the best of the industry. CMI outperforms 80.77% of its industry peers.
- CMI had an Average Return On Invested Capital over the past 3 years of 12.81%. This is above the industry average of 10.17%.
| Industry Rank | Sector 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%
1.3 Margins
- CMI has a better Profit Margin (8.44%) than 67.69% of its industry peers.
- CMI's Profit Margin has been stable in the last couple of years.
- With a Operating Margin value of 11.45%, CMI perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
- In the last couple of years the Operating Margin of CMI has grown nicely.
- The Gross Margin of CMI (25.29%) is worse than 64.62% 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CMI is creating some value.
- Compared to 1 year ago, CMI has more shares outstanding
- Compared to 5 years ago, CMI has less shares outstanding
- The debt/assets ratio for CMI has been reduced compared to a year ago.
2.2 Solvency
- CMI has an Altman-Z score of 4.83. This indicates that CMI is financially healthy and has little risk of bankruptcy at the moment.
- CMI has a better Altman-Z score (4.83) than 73.08% of its industry peers.
- CMI has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as CMI would need 3.17 years to pay back of all of its debts.
- CMI has a Debt to FCF ratio of 3.17. This is in the better half of the industry: CMI outperforms 65.38% of its industry peers.
- CMI has a Debt/Equity ratio of 0.60. This is a neutral value indicating CMI is somewhat dependend on debt financing.
- CMI has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: CMI underperforms 60.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.83 |
ROIC/WACC1.35
WACC8.96%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that CMI should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.76, CMI is not doing good in the industry: 63.08% of the companies in the same industry are doing better.
- CMI has a Quick Ratio of 1.16. 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 Quick ratio of 1.16 is in line compared to the rest of the industry. CMI outperforms 44.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.17% over the past year.
- 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.
- The Revenue has decreased by -1.27% in the past 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
- The Earnings Per Share is expected to grow by 16.27% on average over the next years. This is quite good.
- 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 Year7.09%
Revenue Next 2Y7.82%
Revenue Next 3Y7.9%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 26.66, CMI can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as CMI.
- The average S&P500 Price/Earnings ratio is at 26.99. CMI is around the same levels.
- With a Price/Forward Earnings ratio of 22.25, CMI is valued on the expensive side.
- 60.77% of the companies in the same industry are more expensive than CMI, based on the Price/Forward Earnings ratio.
- CMI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.66 | ||
| Fwd PE | 22.25 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.34 | ||
| EV/EBITDA | 17.03 |
4.3 Compensation for Growth
- CMI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 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 16.07% in the coming years.
PEG (NY)1.34
PEG (5Y)2.05
EPS Next 2Y19.4%
EPS Next 3Y16.07%
5. Dividend
5.1 Amount
- CMI has a Yearly Dividend Yield of 1.34%.
- CMI's Dividend Yield is a higher than the industry average which is at 1.17.
- Compared to the average S&P500 Dividend Yield of 1.81, CMI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
- The dividend of CMI is nicely growing with an annual growth rate of 7.87%!
- CMI has been paying a dividend for at least 10 years, so it has a reliable track record.
- CMI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.87%
Div Incr Years19
Div Non Decr Years20
5.3 Sustainability
- CMI pays out 37.11% 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.
DP37.11%
EPS Next 2Y19.4%
EPS Next 3Y16.07%
593.28
-3.63 (-0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners87.23%
Inst Owner Change2.86%
Ins Owners0.3%
Ins Owner Change-2.46%
Market Cap81.93B
Revenue(TTM)33.67B
Net Income(TTM)2.84B
Analysts74.81
Price Target565.98 (-4.6%)
Short Float %1%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend7.66
Dividend Growth(5Y)7.87%
DP37.11%
Div Incr Years19
Div Non Decr Years20
Ex-Date02-20 2026-02-20 (2)
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)3.18%
PT rev (3m)14.58%
EPS NQ rev (1m)2.72%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)0.24%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)3.31%
Revenue NQ rev (3m)3.47%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)4.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.66 | ||
| Fwd PE | 22.25 | ||
| P/S | 2.43 | ||
| P/FCF | 34.34 | ||
| P/OCF | 22.63 | ||
| P/B | 6.63 | ||
| P/tB | 10.3 | ||
| EV/EBITDA | 17.03 |
EPS(TTM)22.25
EY3.75%
EPS(NY)26.66
Fwd EY4.49%
FCF(TTM)17.28
FCFY2.91%
OCF(TTM)26.22
OCFY4.42%
SpS243.81
BVpS89.42
TBVpS57.62
PEG (NY)1.34
PEG (5Y)2.05
Graham Number211.58
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.83 |
F-Score5
WACC8.96%
ROIC/WACC1.35
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 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 Year7.09%
Revenue Next 2Y7.82%
Revenue Next 3Y7.9%
Revenue Next 5Y8.57%
EBIT growth 1Y5.19%
EBIT growth 3Y14.23%
EBIT growth 5Y16.87%
EBIT Next Year42.23%
EBIT Next 3Y21.7%
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 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 26.66 and the Price/Book (PB) ratio is 6.63.
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 37.11%.