CUMMINS INC (CUM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CUM - US2310211063 - Common Stock
439.3 EUR
+9.5 (+2.21%)
Taking everything into account, CUM scores 5 out of 10 in our fundamental rating. CUM was compared to 108 industry peers in the Machinery industry. While CUM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CUM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CUM was profitable.
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.
1.2 Ratios
CUM has a better Return On Assets (7.93%) than 83.33% of its industry peers.
CUM has a Return On Equity of 22.12%. This is amongst the best in the industry. CUM outperforms 87.96% of its industry peers.
The Return On Invested Capital of CUM (10.92%) is better than 82.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CUM is in line with the industry average of 9.47%.
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 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of CUM has grown nicely.
CUM has a better Operating Margin (12.01%) than 77.78% of its industry peers.
CUM's Operating Margin has been stable in the last couple of years.
CUM has a worse Gross Margin (25.94%) than 76.85% 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 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.
The number of shares outstanding for CUM has been reduced compared to 1 year ago.
Compared to 5 years ago, CUM has less shares outstanding
The debt/assets ratio for CUM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.51 indicates that CUM is not in any danger for bankruptcy at the moment.
The Altman-Z score of CUM (4.51) is better than 87.04% 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.
CUM's Debt to FCF ratio of 3.34 is fine compared to the rest of the industry. CUM outperforms 70.37% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that CUM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.62, CUM is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.51 |
ROIC/WACC1.19
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.77 indicates that CUM should not have too much problems paying its short term obligations.
CUM has a Current ratio of 1.77. This is in the better half of the industry: CUM outperforms 64.81% of its industry peers.
A Quick Ratio of 1.11 indicates that CUM should not have too much problems paying its short term obligations.
CUM has a better Quick ratio (1.11) than 60.19% of its industry peers.
| 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.
CUM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.79% yearly.
Looking at the last year, CUM shows a decrease in Revenue. The Revenue has decreased by -1.80% in the last year.
The Revenue has been growing slightly by 7.67% on average over the past years.
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
The Earnings Per Share is expected to grow by 15.06% on average over the next years. This is quite good.
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 Y4.49%
EPS Next 2Y8.38%
EPS Next 3Y11.56%
EPS Next 5Y15.06%
Revenue Next Year-2.35%
Revenue Next 2Y0.85%
Revenue Next 3Y3.41%
Revenue Next 5Y5.43%
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
A Price/Earnings ratio of 22.16 indicates a rather expensive valuation of CUM.
Compared to the rest of the industry, the Price/Earnings ratio of CUM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.46, CUM is valued at the same level.
CUM is valuated rather expensively with a Price/Forward Earnings ratio of 20.43.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CUM indicates a slightly more expensive valuation: CUM is more expensive than 61.11% of the companies listed in the same industry.
CUM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CUM is valued a bit more expensive than the industry average as 62.04% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CUM indicates a slightly more expensive valuation: CUM is more expensive than 65.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.06 | ||
| EV/EBITDA | 14.12 |
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.
CUM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.94
PEG (5Y)2.85
EPS Next 2Y8.38%
EPS Next 3Y11.56%
5. Dividend
5.1 Amount
CUM has a Yearly Dividend Yield of 1.61%.
Compared to an average industry Dividend Yield of 2.40, CUM has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, CUM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of CUM is nicely growing with an annual growth rate of 7.08%!
Dividend Growth(5Y)7.08%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
38.53% 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.
DP38.53%
EPS Next 2Y8.38%
EPS Next 3Y11.56%
FRA:CUM (12/4/2025, 7:00:00 PM)
439.3
+9.5 (+2.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.11%
Inst Owner ChangeN/A
Ins Owners0.31%
Ins Owner ChangeN/A
Market Cap60.64B
Revenue(TTM)33.58B
Net Income(TTM)2.67B
Analysts72.59
Price Target427.42 (-2.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend6
Dividend Growth(5Y)7.08%
DP38.53%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.52%
Min EPS beat(2)15.01%
Max EPS beat(2)24.03%
EPS beat(4)4
Avg EPS beat(4)17.02%
Min EPS beat(4)8.66%
Max EPS beat(4)24.03%
EPS beat(8)6
Avg EPS beat(8)10.42%
EPS beat(12)7
Avg EPS beat(12)7.35%
EPS beat(16)9
Avg EPS beat(16)3.53%
Revenue beat(2)2
Avg Revenue beat(2)2.37%
Min Revenue beat(2)1.44%
Max Revenue beat(2)3.3%
Revenue beat(4)3
Avg Revenue beat(4)1.79%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)3.63%
Revenue beat(8)6
Avg Revenue beat(8)1.86%
Revenue beat(12)10
Avg Revenue beat(12)2.42%
Revenue beat(16)13
Avg Revenue beat(16)2.57%
PT rev (1m)52.7%
PT rev (3m)52.7%
EPS NQ rev (1m)10.8%
EPS NQ rev (3m)10.8%
EPS NY rev (1m)5.97%
EPS NY rev (3m)5.97%
Revenue NQ rev (1m)-6.79%
Revenue NQ rev (3m)-6.79%
Revenue NY rev (1m)-4.4%
Revenue NY rev (3m)-4.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 20.43 | ||
| P/S | 2.11 | ||
| P/FCF | 31.06 | ||
| P/OCF | 20.16 | ||
| P/B | 5.86 | ||
| P/tB | 9.44 | ||
| EV/EBITDA | 14.12 |
EPS(TTM)19.82
EY4.51%
EPS(NY)21.51
Fwd EY4.9%
FCF(TTM)14.15
FCFY3.22%
OCF(TTM)21.79
OCFY4.96%
SpS208.53
BVpS74.91
TBVpS46.55
PEG (NY)4.94
PEG (5Y)2.85
Graham Number182.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 22.12% | ||
| ROCE | 16.67% | ||
| ROIC | 10.92% | ||
| ROICexc | 12.51% | ||
| ROICexgc | 15.85% | ||
| OM | 12.01% | ||
| PM (TTM) | 7.94% | ||
| GM | 25.94% | ||
| FCFM | 6.78% |
ROA(3y)7.3%
ROA(5y)7.76%
ROE(3y)23.56%
ROE(5y)23.61%
ROIC(3y)10.13%
ROIC(5y)9.3%
ROICexc(3y)11.48%
ROICexc(5y)10.95%
ROICexgc(3y)15.52%
ROICexgc(5y)14.18%
ROCE(3y)16.61%
ROCE(5y)14.89%
ROICexgc growth 3Y9.39%
ROICexgc growth 5Y0.52%
ROICexc growth 3Y5.66%
ROICexc growth 5Y-1.01%
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%
F-Score6
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 112.32% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.43% | ||
| Profit Quality | 85.38% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.51 |
F-Score6
WACC9.19%
ROIC/WACC1.19
Cap/Depr(3y)116.24%
Cap/Depr(5y)110.58%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.31%
Profit Quality(3y)143.42%
Profit Quality(5y)123.85%
High Growth Momentum
Growth
EPS 1Y (TTM)14.51%
EPS 3Y13.63%
EPS 5Y7.79%
EPS Q2Q%-4.61%
EPS Next Y4.49%
EPS Next 2Y8.38%
EPS Next 3Y11.56%
EPS Next 5Y15.06%
Revenue 1Y (TTM)-1.8%
Revenue growth 3Y12.39%
Revenue growth 5Y7.67%
Sales Q2Q%-1.64%
Revenue Next Year-2.35%
Revenue Next 2Y0.85%
Revenue Next 3Y3.41%
Revenue Next 5Y5.43%
EBIT growth 1Y17.83%
EBIT growth 3Y18.42%
EBIT growth 5Y7.91%
EBIT Next Year43.48%
EBIT Next 3Y20.19%
EBIT Next 5Y19.2%
FCF growth 1Y3.03%
FCF growth 3Y-42.53%
FCF growth 5Y-35.01%
OCF growth 1Y5.57%
OCF growth 3Y-12.97%
OCF growth 5Y-14.11%
CUMMINS INC / CUM.DE FAQ
What is the fundamental rating for CUM stock?
ChartMill assigns a fundamental rating of 5 / 10 to CUM.DE.
What is the valuation status for CUM 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 is the valuation of CUMMINS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CUMMINS INC (CUM.DE) is 22.16 and the Price/Book (PB) ratio is 5.86.
Can you provide the dividend sustainability for CUM stock?
The dividend rating of CUMMINS INC (CUM.DE) is 5 / 10 and the dividend payout ratio is 38.53%.