CUMMINS INC (CUM.DE) Fundamental Analysis & Valuation

FRA:CUM • US2310211063

Current stock price

507.2 EUR
-16.8 (-3.21%)
Last:

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

7

1. CUM.DE Profitability Analysis

1.1 Basic Checks

  • CUM had positive earnings in the past year.
  • In the past year CUM had a positive cash flow from operations.
  • CUM had positive earnings in each of the past 5 years.
  • In the past 5 years CUM always reported a positive cash flow from operatings.
CUM.DE Yearly Net Income VS EBIT VS OCF VS FCFCUM.DE 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

  • The Return On Assets of CUM (8.36%) is better than 86.92% of its industry peers.
  • CUM has a Return On Equity of 23.02%. This is amongst the best in the industry. CUM outperforms 92.52% of its industry peers.
  • CUM has a better Return On Invested Capital (12.12%) than 87.85% of its industry peers.
  • CUM had an Average Return On Invested Capital over the past 3 years of 12.81%. This is above the industry average of 7.88%.
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%
CUM.DE Yearly ROA, ROE, ROICCUM.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • CUM's Profit Margin of 8.44% is amongst the best of the industry. CUM outperforms 81.31% of its industry peers.
  • CUM's Profit Margin has been stable in the last couple of years.
  • With a decent Operating Margin value of 11.45%, CUM is doing good in the industry, outperforming 74.77% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CUM has grown nicely.
  • With a Gross Margin value of 25.29%, CUM is not doing good in the industry: 78.50% of the companies in the same industry are doing better.
  • In the last couple of years the Gross Margin of CUM has remained more or less at the same level.
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%
CUM.DE Yearly Profit, Operating, Gross MarginsCUM.DE 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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6

2. CUM.DE Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CUM is creating some value.
  • The number of shares outstanding for CUM has been increased compared to 1 year ago.
  • CUM has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, CUM has an improved debt to assets ratio.
CUM.DE Yearly Shares OutstandingCUM.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CUM.DE Yearly Total Debt VS Total AssetsCUM.DE 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 4.83 indicates that CUM is not in any danger for bankruptcy at the moment.
  • CUM has a better Altman-Z score (4.83) than 89.72% of its industry peers.
  • The Debt to FCF ratio of CUM is 3.17, which is a good value as it means it would take CUM, 3.17 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of CUM (3.17) is better than 66.36% of its industry peers.
  • CUM has a Debt/Equity ratio of 0.60. This is a neutral value indicating CUM is somewhat dependend on debt financing.
  • CUM has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: CUM underperforms 61.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 3.17
Altman-Z 4.83
ROIC/WACC1.19
WACC10.23%
CUM.DE Yearly LT Debt VS Equity VS FCFCUM.DE 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

  • A Current Ratio of 1.76 indicates that CUM should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.76, CUM is in the better half of the industry, outperforming 64.49% of the companies in the same industry.
  • A Quick Ratio of 1.16 indicates that CUM should not have too much problems paying its short term obligations.
  • CUM has a Quick ratio (1.16) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.16
CUM.DE Yearly Current Assets VS Current LiabilitesCUM.DE 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. CUM.DE Growth Analysis

3.1 Past

  • CUM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.17%.
  • Measured over the past years, CUM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.03% on average per year.
  • CUM shows a decrease in Revenue. In the last year, the revenue decreased by -1.27%.
  • The Revenue has been growing by 11.19% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, CUM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.27% on average per year.
  • Based on estimates for the next years, CUM will show a small growth in Revenue. The Revenue will grow by 7.41% on average per year.
EPS Next Y18.32%
EPS Next 2Y18.66%
EPS Next 3Y16.8%
EPS Next 5Y16.27%
Revenue Next Year7.14%
Revenue Next 2Y7.86%
Revenue Next 3Y7.83%
Revenue Next 5Y7.41%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CUM.DE Yearly Revenue VS EstimatesCUM.DE 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
CUM.DE Yearly EPS VS EstimatesCUM.DE 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. CUM.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.69 indicates a quite expensive valuation of CUM.
  • CUM's Price/Earnings ratio is in line with the industry average.
  • CUM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.64.
  • With a Price/Forward Earnings ratio of 22.57, CUM is valued on the expensive side.
  • CUM's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. CUM is around the same levels.
Industry RankSector Rank
PE 26.69
Fwd PE 22.57
CUM.DE Price Earnings VS Forward Price EarningsCUM.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CUM indicates a slightly more expensive valuation: CUM is more expensive than 67.29% of the companies listed in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as CUM.
Industry RankSector Rank
P/FCF 34.42
EV/EBITDA 17.07
CUM.DE Per share dataCUM.DE 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.
  • The decent profitability rating of CUM may justify a higher PE ratio.
  • A more expensive valuation may be justified as CUM's earnings are expected to grow with 16.80% in the coming years.
PEG (NY)1.46
PEG (5Y)2.05
EPS Next 2Y18.66%
EPS Next 3Y16.8%

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

5

5. CUM.DE Dividend Analysis

5.1 Amount

  • CUM has a Yearly Dividend Yield of 1.22%.
  • Compared to an average industry Dividend Yield of 1.39, CUM has a dividend in line with its industry peers.
  • CUM's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.22%

5.2 History

  • On average, the dividend of CUM grows each year by 7.87%, which is quite nice.
Dividend Growth(5Y)7.87%
Div Incr Years1
Div Non Decr Years2
CUM.DE Yearly Dividends per shareCUM.DE Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • 37.11% of the earnings are spent on dividend by CUM. This is a low number and sustainable payout ratio.
  • CUM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.11%
EPS Next 2Y18.66%
EPS Next 3Y16.8%
CUM.DE Yearly Income VS Free CF VS DividendCUM.DE 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
CUM.DE Dividend Payout.CUM.DE Dividend Payout, showing the Payout Ratio.CUM.DE Dividend Payout.PayoutRetained Earnings

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CUM.DE Fundamentals: All Metrics, Ratios and Statistics

CUMMINS INC

FRA:CUM (4/16/2026, 7:00:00 PM)

507.2

-16.8 (-3.21%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Industry Strength85.09
Industry Growth81.99
Earnings (Last)02-05
Earnings (Next)05-05
Inst Owners87.31%
Inst Owner ChangeN/A
Ins Owners0.29%
Ins Owner ChangeN/A
Market Cap70.13B
Revenue(TTM)33.67B
Net Income(TTM)2.84B
Analysts74.81
Price Target532.66 (5.02%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.22%
Yearly Dividend6.54
Dividend Growth(5Y)7.87%
DP37.11%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
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)14.33%
PT rev (3m)14.33%
EPS NQ rev (1m)-1.58%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)3.27%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.42%
Valuation
Industry RankSector Rank
PE 26.69
Fwd PE 22.57
P/S 2.44
P/FCF 34.42
P/OCF 22.68
P/B 6.65
P/tB 10.32
EV/EBITDA 17.07
EPS(TTM)19
EY3.75%
EPS(NY)22.48
Fwd EY4.43%
FCF(TTM)14.73
FCFY2.91%
OCF(TTM)22.36
OCFY4.41%
SpS207.93
BVpS76.26
TBVpS49.14
PEG (NY)1.46
PEG (5Y)2.05
Graham Number180.559 (-64.4%)
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 4.83
F-Score5
WACC10.23%
ROIC/WACC1.19
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 Year7.14%
Revenue Next 2Y7.86%
Revenue Next 3Y7.83%
Revenue Next 5Y7.41%
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 / CUM.DE Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CUMMINS INC?

ChartMill assigns a fundamental rating of 6 / 10 to CUM.DE.


What is the valuation status of CUMMINS INC (CUM.DE) stock?

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


How profitable is CUMMINS INC (CUM.DE) stock?

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


Can you provide the financial health for CUM stock?

The financial health rating of CUMMINS INC (CUM.DE) is 6 / 10.


Is the dividend of CUMMINS INC sustainable?

The dividend rating of CUMMINS INC (CUM.DE) is 5 / 10 and the dividend payout ratio is 37.11%.