CUMMINS INC (CUM.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:CUM • US2310211063
487.2 EUR
+2.4 (+0.5%)
Last: Jan 29, 2026, 07:00 PM
Overall CUM gets a fundamental rating of 5 out of 10. We evaluated CUM against 112 industry peers in the Machinery industry. CUM scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, CUM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year CUM was profitable.
- In the past year CUM had a positive cash flow from operations.
- Each year in the past 5 years CUM has been profitable.
- In the past 5 years CUM always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of CUM (7.93%) is better than 83.93% of its industry peers.
- Looking at the Return On Equity, with a value of 22.12%, CUM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 10.92%, CUM belongs to the best of the industry, outperforming 83.04% of the companies in the same industry.
- CUM had an Average Return On Invested Capital over the past 3 years of 10.13%. This is in line with the industry average of 8.91%.
- The 3 year average ROIC (10.13%) for CUM 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
- Looking at the Profit Margin, with a value of 7.94%, CUM is in the better half of the industry, outperforming 76.79% of the companies in the same industry.
- CUM's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 12.01%, CUM is doing good in the industry, outperforming 76.79% of the companies in the same industry.
- CUM's Operating Margin has been stable in the last couple of years.
- CUM has a Gross Margin of 25.94%. This is in the lower half of the industry: CUM underperforms 75.00% of its industry peers.
- CUM's Gross Margin has been stable in the last couple of years.
| 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CUM is creating some value.
- CUM has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for CUM has been reduced compared to 5 years ago.
- Compared to 1 year ago, CUM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.81 indicates that CUM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of CUM (4.81) is better than 90.18% of its industry peers.
- CUM has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as CUM would need 3.34 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 3.34, CUM is doing good in the industry, outperforming 66.07% of the companies in the same industry.
- CUM has a Debt/Equity ratio of 0.62. This is a neutral value indicating CUM is somewhat dependend on debt financing.
- CUM has a worse Debt to Equity ratio (0.62) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.81 |
ROIC/WACC1.16
WACC9.44%
2.3 Liquidity
- CUM has a Current Ratio of 1.77. This is a normal value and indicates that CUM is financially healthy and should not expect problems in meeting its short term obligations.
- CUM has a Current ratio of 1.77. This is in the better half of the industry: CUM outperforms 60.71% of its industry peers.
- A Quick Ratio of 1.11 indicates that CUM should not have too much problems paying its short term obligations.
- The Quick ratio of CUM (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- CUM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.51%, which is quite good.
- The Earnings Per Share has been growing slightly by 7.79% on average over the past years.
- CUM shows a decrease in Revenue. In the last year, the revenue decreased by -1.80%.
- Measured over the past years, CUM 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)-1.8%
Revenue growth 3Y12.39%
Revenue growth 5Y7.67%
Sales Q2Q%-1.64%
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 15.75% on average per year.
- Based on estimates for the next years, CUM will show a small growth in Revenue. The Revenue will grow by 5.43% on average per year.
EPS Next Y9.12%
EPS Next 2Y11.6%
EPS Next 3Y13.98%
EPS Next 5Y15.75%
Revenue Next Year-1.19%
Revenue Next 2Y2.16%
Revenue Next 3Y4.28%
Revenue Next 5Y5.43%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 25.11, CUM can be considered very expensive at the moment.
- CUM's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.32. CUM is around the same levels.
- The Price/Forward Earnings ratio is 21.83, which indicates a rather expensive current valuation of CUM.
- 60.71% of the companies in the same industry are cheaper than CUM, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of CUM to the average of the S&P500 Index (25.57), we can say CUM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | 21.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CUM is valued a bit more expensive than the industry average as 66.96% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CUM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.19 | ||
| EV/EBITDA | 16.25 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CUM does not grow enough to justify the current Price/Earnings ratio.
- 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 13.98% in the coming years.
PEG (NY)2.75
PEG (5Y)3.22
EPS Next 2Y11.6%
EPS Next 3Y13.98%
5. Dividend
5.1 Amount
- CUM has a Yearly Dividend Yield of 1.37%.
- CUM's Dividend Yield is comparable with the industry average which is at 1.53.
- CUM's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
- On average, the dividend of CUM grows each year by 7.08%, which is quite nice.
Dividend Growth(5Y)7.08%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- CUM pays out 38.53% of its income as dividend. This is a sustainable payout ratio.
- The dividend of CUM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.53%
EPS Next 2Y11.6%
EPS Next 3Y13.98%
CUMMINS INC / CUM.DE FAQ
Can you provide the ChartMill fundamental rating for CUMMINS INC?
ChartMill assigns a fundamental rating of 5 / 10 to CUM.DE.
What is the valuation status of CUMMINS INC (CUM.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to CUMMINS INC (CUM.DE). This can be considered as Overvalued.
What is the profitability of CUM stock?
CUMMINS INC (CUM.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of CUMMINS INC (CUM.DE) stock?
The Price/Earnings (PE) ratio for CUMMINS INC (CUM.DE) is 25.11 and the Price/Book (PB) ratio is 6.64.
Is the dividend of CUMMINS INC sustainable?
The dividend rating of CUMMINS INC (CUM.DE) is 5 / 10 and the dividend payout ratio is 38.53%.