CMI

Cummins Inc.

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Machinery

Exchange

NYSE

County of HQ

United States

Next Earnings Date

08/04/2026

Business Summary

Cummins Inc. operates with a robust business model centered around designing, manufacturing, and distributing engines and power generation products. Its competitive moat lies in its extensive service network and strong brand reputation, which foster customer loyalty. By offering integrated solutions and aftermarket services, Cummins ensures recurring revenue streams. This strategic positioning allows the company to maintain a steady cash flow and lock in long-term customer relationships.

 


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VALUATION

P/E

35.88

Market Cap ($M USD)

$95.70B

Forward P/E

18.66

PEG

0.20

PRICE TO SALES

2.82

PRICE TO BOOK

7.77

EV / EBITDA

21.07

5-Year Average P/E

Free Cash Flow Yield

2.79%

DCF Value

$308.18

Graham Number

$197.07

Price to FCF

35.83

EV to FCF

37.94

Earnings Yield

2.79%

FCF Yield

2.79%

DIVIDEND

Yield

1.13%

Annual Payout

$7.82

Payout Ratio

40.40%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$19.33

Next Year EPS Growth Estimate

$37.16

Next Year Revenue Growth Estimate

$4.31T

Return on Equity (ROE)

22.02%

FREE CASH FLOW

Operating Margin

11.24%

Debt-to-Equity

0.66

Piotroski F-Score

6

Altman Z-Score

5.22

Return on Invested Capital (ROIC)

15.69%

Current Ratio

1.71

Quick Ratio

1.11

Net Debt to EBITDA

1.17

Interest Coverage

11.62

Gross Profit margin

25.39%

FCF PER SHARE

$19.31

REVENUE PER SHARE

$245.08

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Gainseekers Quantitative Analysis

Summary

The market seems to be pricing Cummins Inc. with an exuberance that defies its intrinsic value. With a snapshot price significantly above its DCF value and Graham Number, the stock appears overvalued. The Forward P/E of 18.66 suggests some optimism for future earnings, yet the earnings yield of just 2.79% indicates a meager return relative to its price. However, the Altman Z-score of 5.22 signals robust financial health, suggesting low bankruptcy risk. This juxtaposition of high valuation and financial stability creates a complex narrative for investors.

AI Exposure / Tech Reliance

Operating in the Industrials sector, Cummins is well-positioned to integrate AI and modern technologies into its machinery and engine solutions. The industry’s shift towards smart manufacturing and IoT-enabled machinery aligns with Cummins’ capabilities. This adaptability could enhance operational efficiency and product innovation.

The Bull Case

For the value-driven investor, Cummins offers compelling reasons to buy. The company boasts a strong ROIC of 15.69%, indicating efficient capital use and a solid return on investments. A Piotroski F-Score of 6 reflects decent financial health, while the operating margin of 11.24% underscores its pricing power. Despite a modest FCF yield, the company's ability to generate cash flow supports its dividend and growth prospects.

The Bear Case

Yet, the stock is not without its pitfalls. The Price/Book ratio of 7.77 and Price/Sales of 2.82 suggest a premium valuation that may not be justified by its fundamentals. Trading close to its 52-week high, the stock appears technically overextended. Additionally, the EV to FCF ratio of 37.94 highlights a concerning cash flow valuation, raising questions about its ability to sustain such high multiples.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$680.73

Institutional Ownership %

1-Year Beta

1.27

Insider Buying % (6 Mo)

Distance to 52-Week High

3.54%

Distance to 52-Week Low

55.60%

EARNINGS SURPRISE %

9.24%

50-DAY SMA

$592.29

200-DAY SMA

$502.66

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.