CUMMINS INC (CMI) Fundamental Analysis & Valuation

NYSE:CMI • US2310211063

Current stock price

615.56 USD
-2.72 (-0.44%)
At close:
615.56 USD
0 (0%)
After Hours:

This CMI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. CMI Profitability Analysis

1.1 Basic Checks

  • CMI had positive earnings in the past year.
  • In the past year CMI had a positive cash flow from operations.
  • CMI had positive earnings in each of the past 5 years.
  • In the past 5 years CMI always reported a positive cash flow from operatings.
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's Return On Assets of 8.36% is fine compared to the rest of the industry. CMI outperforms 77.86% of its industry peers.
  • CMI has a Return On Equity of 23.02%. This is amongst the best in the industry. CMI outperforms 89.31% of its industry peers.
  • With an excellent Return On Invested Capital value of 12.12%, CMI belongs to the best of the industry, outperforming 80.92% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CMI is above the industry average of 10.00%.
Industry RankSector 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%
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

  • With a decent Profit Margin value of 8.44%, CMI is doing good in the industry, outperforming 70.23% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CMI has remained more or less at the same level.
  • CMI has a better Operating Margin (11.45%) than 60.31% of its industry peers.
  • CMI's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 25.29%, CMI is doing worse than 65.65% of the companies in the same industry.
  • CMI's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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

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5

2. CMI Health Analysis

2.1 Basic Checks

  • CMI 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, CMI has more shares outstanding
  • Compared to 5 years ago, CMI has less shares outstanding
  • CMI has a better debt/assets ratio than last year.
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

  • CMI has an Altman-Z score of 4.92. This indicates that CMI is financially healthy and has little risk of bankruptcy at the moment.
  • CMI has a Altman-Z score of 4.92. This is in the better half of the industry: CMI outperforms 71.76% of its industry peers.
  • The Debt to FCF ratio of CMI is 3.17, which is a good value as it means it would take CMI, 3.17 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.17, CMI is in the better half of the industry, outperforming 67.94% of the companies in the same industry.
  • CMI has a Debt/Equity ratio of 0.60. This is a neutral value indicating CMI is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.60, CMI is doing worse than 61.07% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 3.17
Altman-Z 4.92
ROIC/WACC1.17
WACC10.34%
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 1.76. This is a normal value and indicates that CMI is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.76, CMI is not doing good in the industry: 64.12% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.16 indicates that CMI should not have too much problems paying its short term obligations.
  • CMI has a Quick ratio of 1.16. This is comparable to the rest of the industry: CMI outperforms 42.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.16
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. CMI Growth Analysis

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.
  • 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 Y18.32%
EPS Next 2Y18.66%
EPS Next 3Y16.8%
EPS Next 5Y16.27%
Revenue Next Year7.12%
Revenue Next 2Y7.83%
Revenue Next 3Y7.77%
Revenue Next 5Y8.57%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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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3

4. CMI Valuation Analysis

4.1 Price/Earnings Ratio

  • CMI is valuated quite expensively with a Price/Earnings ratio of 27.67.
  • CMI's Price/Earnings is on the same level as the industry average.
  • CMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 23.38, which indicates a rather expensive current valuation of CMI.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CMI is on the same level as its industry peers.
  • CMI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.96.
Industry RankSector Rank
PE 27.67
Fwd PE 23.38
CMI Price Earnings VS Forward Price EarningsCMI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as CMI.
  • CMI's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 35.67
EV/EBITDA 17.74
CMI Per share dataCMI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

4.3 Compensation for Growth

  • CMI's 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 16.80% in the coming years.
PEG (NY)1.51
PEG (5Y)2.12
EPS Next 2Y18.66%
EPS Next 3Y16.8%

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

7

5. CMI Dividend Analysis

5.1 Amount

  • CMI has a Yearly Dividend Yield of 1.31%.
  • Compared to an average industry Dividend Yield of 1.08, CMI pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.82, CMI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.31%

5.2 History

  • On average, the dividend of CMI grows each year by 7.87%, which is quite nice.
  • CMI has paid a dividend for at least 10 years, which is 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)7.87%
Div Incr Years20
Div Non Decr Years21
CMI Yearly Dividends per shareCMI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

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 2Y18.66%
EPS Next 3Y16.8%
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

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CMI Fundamentals: All Metrics, Ratios and Statistics

CUMMINS INC

NYSE:CMI (4/14/2026, 3:42:21 PM)

After market: 615.56 0 (0%)

615.56

-2.72 (-0.44%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-05
Inst Owners87.31%
Inst Owner Change0.02%
Ins Owners0.29%
Ins Owner Change3.86%
Market Cap85.11B
Revenue(TTM)33.67B
Net Income(TTM)2.84B
Analysts74.81
Price Target631.39 (2.57%)
Short Float %1.59%
Short Ratio2.26
Dividend
Industry RankSector Rank
Dividend Yield 1.31%
Yearly Dividend7.66
Dividend Growth(5Y)7.87%
DP37.11%
Div Incr Years20
Div Non Decr Years21
Ex-Date02-20
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)0.83%
PT rev (3m)16.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.43%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)3.34%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.6%
Valuation
Industry RankSector Rank
PE 27.67
Fwd PE 23.38
P/S 2.53
P/FCF 35.67
P/OCF 23.5
P/B 6.89
P/tB 10.69
EV/EBITDA 17.74
EPS(TTM)22.25
EY3.61%
EPS(NY)26.33
Fwd EY4.28%
FCF(TTM)17.26
FCFY2.8%
OCF(TTM)26.19
OCFY4.25%
SpS243.53
BVpS89.32
TBVpS57.56
PEG (NY)1.51
PEG (5Y)2.12
Graham Number211.46
Profitability
Industry RankSector 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 RankSector 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 4.92
F-Score5
WACC10.34%
ROIC/WACC1.17
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 Y18.32%
EPS Next 2Y18.66%
EPS Next 3Y16.8%
EPS Next 5Y16.27%
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y6.25%
Revenue growth 5Y11.19%
Sales Q2Q%1.05%
Revenue Next Year7.12%
Revenue Next 2Y7.83%
Revenue Next 3Y7.77%
Revenue Next 5Y8.57%
EBIT growth 1Y5.19%
EBIT growth 3Y14.23%
EBIT growth 5Y16.87%
EBIT Next Year42.61%
EBIT Next 3Y20.56%
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 Fundamental Analysis 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 for CMI stock?

ChartMill assigns a valuation rating of 3 / 10 to CUMMINS INC (CMI). This can be considered as Overvalued.


Can you provide the profitability details for CUMMINS INC?

CUMMINS INC (CMI) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for CMI stock?

The Earnings per Share (EPS) of CUMMINS INC (CMI) is expected to grow by 18.32% in the next year.


How sustainable is the dividend of CUMMINS INC (CMI) stock?

The dividend rating of CUMMINS INC (CMI) is 7 / 10 and the dividend payout ratio is 37.11%.