CUMMINS INC (CUM.DE) Fundamental Analysis & Valuation

FRA:CUM • US2310211063

Current stock price

465.3 EUR
-8.8 (-1.86%)
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.
  • CUM had a positive operating cash flow in the past year.
  • Each year in the past 5 years CUM has been profitable.
  • Each year in the past 5 years CUM had a positive operating cash flow.
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 87.85% 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.
  • The Return On Invested Capital of CUM (12.12%) is better than 89.72% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CUM is above the industry average of 8.48%.
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

  • Looking at the Profit Margin, with a value of 8.44%, CUM belongs to the top of the industry, outperforming 83.18% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CUM has remained more or less at the same level.
  • With a decent Operating Margin value of 11.45%, CUM is doing good in the industry, outperforming 77.57% of the companies in the same industry.
  • CUM's Operating Margin has improved in the last couple of years.
  • The Gross Margin of CUM (25.29%) is worse than 76.64% of its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CUM is still creating some value.
  • CUM has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CUM has less shares outstanding
  • CUM has a better debt/assets ratio than last year.
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

  • CUM has an Altman-Z score of 4.61. This indicates that CUM is financially healthy and has little risk of bankruptcy at the moment.
  • CUM's Altman-Z score of 4.61 is amongst the best of the industry. CUM outperforms 91.59% 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.
  • With a decent Debt to FCF ratio value of 3.17, CUM is doing good in the industry, outperforming 71.03% of the companies in the same industry.
  • A Debt/Equity ratio of 0.60 indicates that 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 4.61
ROIC/WACC1.21
WACC10%
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

  • CUM has a Current Ratio of 1.76. This is a normal value and indicates that CUM is financially healthy and should not expect problems in meeting its short term obligations.
  • CUM's Current ratio of 1.76 is fine compared to the rest of the industry. CUM outperforms 64.49% of its industry peers.
  • 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 of 1.16. This is in the better half of the industry: CUM outperforms 60.75% of 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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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%.
  • Measured over the past years, CUM shows a quite strong growth in Revenue. The Revenue has been growing by 11.19% on average per year.
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

  • CUM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.27% yearly.
  • CUM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.57% yearly.
EPS Next Y18.82%
EPS Next 2Y19.04%
EPS Next 3Y17.47%
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.
  • 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

  • CUM is valuated rather expensively with a Price/Earnings ratio of 24.08.
  • CUM's Price/Earnings ratio is in line with the industry average.
  • CUM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 20.27, CUM is valued on the expensive side.
  • CUM's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of CUM to the average of the S&P500 Index (22.19), we can say CUM is valued inline with the index average.
Industry RankSector Rank
PE 24.08
Fwd PE 20.27
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

  • CUM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CUM is more expensive than 67.29% of the companies in the same industry.
  • CUM's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 31.03
EV/EBITDA 15.44
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

  • CUM's 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 17.47% in the coming years.
PEG (NY)1.28
PEG (5Y)1.85
EPS Next 2Y19.04%
EPS Next 3Y17.47%

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5

5. CUM.DE Dividend Analysis

5.1 Amount

  • CUM has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
  • CUM's Dividend Yield is comparable with the industry average which is at 1.61.
  • CUM's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.51%

5.2 History

  • The dividend of CUM is nicely growing with an annual growth rate of 7.87%!
Dividend Growth(5Y)7.87%
Div Incr Years2
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

  • CUM pays out 37.11% 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.
DP37.11%
EPS Next 2Y19.04%
EPS Next 3Y17.47%
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 (3/26/2026, 7:00:00 PM)

465.3

-8.8 (-1.86%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-04
Inst Owners87.15%
Inst Owner ChangeN/A
Ins Owners0.29%
Ins Owner ChangeN/A
Market Cap64.29B
Revenue(TTM)33.67B
Net Income(TTM)2.84B
Analysts75.56
Price Target465.92 (0.13%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.51%
Yearly Dividend6.65
Dividend Growth(5Y)7.87%
DP37.11%
Div Incr Years2
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)0%
PT rev (3m)0.26%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)2.43%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)3.34%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.6%
Valuation
Industry RankSector Rank
PE 24.08
Fwd PE 20.27
P/S 2.2
P/FCF 31.03
P/OCF 20.45
P/B 6
P/tB 9.3
EV/EBITDA 15.44
EPS(TTM)19.32
EY4.15%
EPS(NY)22.96
Fwd EY4.93%
FCF(TTM)14.99
FCFY3.22%
OCF(TTM)22.75
OCFY4.89%
SpS211.59
BVpS77.6
TBVpS50.01
PEG (NY)1.28
PEG (5Y)1.85
Graham Number183.67
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 4.61
F-Score5
WACC10%
ROIC/WACC1.21
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 Y18.82%
EPS Next 2Y19.04%
EPS Next 3Y17.47%
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 Year42.53%
EBIT Next 3Y20.49%
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.


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 24.08 and the Price/Book (PB) ratio is 6.


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%.