(CMI) Cummins - Ratings and Ratios
Diesel Engines, Turbochargers, Generators, Transmissions, Emissions Tech
Dividends
| Dividend Yield | 1.50% |
| Yield on Cost 5y | 3.94% |
| Yield CAGR 5y | 7.29% |
| Payout Consistency | 73.7% |
| Payout Ratio | 36.8% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 26.4% |
| Value at Risk 5%th | 40.5% |
| Relative Tail Risk | -6.79% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.06 |
| Alpha | 21.91 |
| CAGR/Max DD | 1.06 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.459 |
| Beta | 1.167 |
| Beta Downside | 1.246 |
| Drawdowns 3y | |
|---|---|
| Max DD | 30.48% |
| Mean DD | 7.14% |
| Median DD | 5.81% |
Description: CMI Cummins December 02, 2025
Cummins Inc. (CMI) designs, manufactures, and services a broad portfolio of power solutions, organized into five segments: Engine, Distribution, Components, Power Systems, and Accelera. Its product lineup spans diesel and natural-gas engines, drivetrain components (axles, brakes, suspensions), after-treatment systems (catalytic converters, SCR units), electronic controls, and a range of transmissions. The company also delivers power generation equipment-including standby and prime generators, paralleling systems, and transfer switches-as well as emerging electrified technologies such as batteries, fuel cells, electric powertrains, and hydrogen production solutions. Sales are made to OEMs, distributors, dealers, and end-users worldwide.
Key data points (FY 2023): revenue of roughly $27 billion, adjusted EPS of $10.5, and a net profit margin near 9 %. The business is highly sensitive to global freight volumes and construction activity, which drive demand for heavy-duty diesel engines, while tightening emissions regulations and the shift toward decarbonization are accelerating growth in Cummins’ after-treatment and electrified-power segments. A notable sector driver is the U.S. Infrastructure Investment and Jobs Act, expected to boost demand for generators and distributed-energy solutions over the next 3-5 years.
For a deeper, data-driven look at Cummins’ valuation assumptions and scenario modeling, explore the analysis available on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (2.67b TTM) > 0 and > 6% of Revenue (6% = 2.01b TTM) |
| FCFTA 0.07 (>2.0%) and ΔFCFTA 5.72pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 21.64% (prev 10.86%; Δ 10.78pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.10 (>3.0%) and CFO 3.51b > Net Income 2.67b (YES >=105%, WARN >=100%) |
| Net Debt (5.75b) to EBITDA (5.27b) ratio: 1.09 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.77 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (138.6m) change vs 12m ago 0.36% (target <= -2.0% for YES) |
| Gross Margin 25.61% (prev 24.58%; Δ 1.03pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 102.2% (prev 106.7%; Δ -4.45pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 12.41 (EBITDA TTM 5.27b / Interest Expense TTM 336.0m) >= 6 (WARN >= 3) |
Altman Z'' 5.52
| (A) 0.22 = (Total Current Assets 16.72b - Total Current Liabilities 9.45b) / Total Assets 33.64b |
| (B) 0.66 = Retained Earnings (Balance) 22.30b / Total Assets 33.64b |
| (C) 0.13 = EBIT TTM 4.17b / Avg Total Assets 32.84b |
| (D) 1.04 = Book Value of Equity 21.28b / Total Liabilities 20.54b |
| Total Rating: 5.52 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 76.58
| 1. Piotroski 7.0pt |
| 2. FCF Yield 3.06% |
| 3. FCF Margin 6.78% |
| 4. Debt/Equity 0.69 |
| 5. Debt/Ebitda 1.09 |
| 6. ROIC - WACC (= 5.63)% |
| 7. RoE 23.69% |
| 8. Rev. Trend 76.15% |
| 9. EPS Trend 54.49% |
What is the price of CMI shares?
Over the past week, the price has changed by +2.54%, over one month by +16.78%, over three months by +28.26% and over the past year by +37.59%.
Is CMI a buy, sell or hold?
- Strong Buy: 5
- Buy: 3
- Hold: 15
- Sell: 0
- Strong Sell: 1
What are the forecasts/targets for the CMI price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 517.9 | 1.4% |
| Analysts Target Price | 517.9 | 1.4% |
| ValueRay Target Price | 646.1 | 26.5% |
CMI Fundamental Data Overview December 04, 2025
P/E Trailing = 25.7048
P/E Forward = 19.5313
P/S = 2.0614
P/B = 5.6769
P/EG = 2.0462
Beta = 1.116
Revenue TTM = 33.58b USD
EBIT TTM = 4.17b USD
EBITDA TTM = 5.27b USD
Long Term Debt = 6.82b USD (from longTermDebt, last quarter)
Short Term Debt = 930.0m USD (from shortTermDebt, last quarter)
Debt = 8.32b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.75b USD (from netDebt column, last quarter)
Enterprise Value = 74.38b USD (69.23b + Debt 8.32b - CCE 3.16b)
Interest Coverage Ratio = 12.41 (Ebit TTM 4.17b / Interest Expense TTM 336.0m)
FCF Yield = 3.06% (FCF TTM 2.28b / Enterprise Value 74.38b)
FCF Margin = 6.78% (FCF TTM 2.28b / Revenue TTM 33.58b)
Net Margin = 7.94% (Net Income TTM 2.67b / Revenue TTM 33.58b)
Gross Margin = 25.61% ((Revenue TTM 33.58b - Cost of Revenue TTM 24.98b) / Revenue TTM)
Gross Margin QoQ = 25.60% (prev 26.39%)
Tobins Q-Ratio = 2.21 (Enterprise Value 74.38b / Total Assets 33.64b)
Interest Expense / Debt = 1.00% (Interest Expense 83.0m / Debt 8.32b)
Taxrate = 32.65% (271.0m / 830.0m)
NOPAT = 2.81b (EBIT 4.17b * (1 - 32.65%))
Current Ratio = 1.77 (Total Current Assets 16.72b / Total Current Liabilities 9.45b)
Debt / Equity = 0.69 (Debt 8.32b / totalStockholderEquity, last quarter 12.06b)
Debt / EBITDA = 1.09 (Net Debt 5.75b / EBITDA 5.27b)
Debt / FCF = 2.52 (Net Debt 5.75b / FCF TTM 2.28b)
Total Stockholder Equity = 11.26b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.93% (Net Income 2.67b / Total Assets 33.64b)
RoE = 23.69% (Net Income TTM 2.67b / Total Stockholder Equity 11.26b)
RoCE = 23.06% (EBIT 4.17b / Capital Employed (Equity 11.26b + L.T.Debt 6.82b))
RoIC = 14.91% (NOPAT 2.81b / Invested Capital 18.83b)
WACC = 9.29% (E(69.23b)/V(77.54b) * Re(10.32%) + D(8.32b)/V(77.54b) * Rd(1.00%) * (1-Tc(0.33)))
Discount Rate = 10.32% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.17%
[DCF Debug] Terminal Value 71.23% ; FCFE base≈1.50b ; Y1≈1.57b ; Y5≈1.83b
Fair Price DCF = 159.9 (DCF Value 22.08b / Shares Outstanding 138.0m; 5y FCF grow 4.99% → 3.0% )
EPS Correlation: 54.49 | EPS CAGR: 9.68% | SUE: -1.54 | # QB: 0
Revenue Correlation: 76.15 | Revenue CAGR: 9.84% | SUE: 1.75 | # QB: 2
EPS next Quarter (2026-03-31): EPS=5.36 | Chg30d=+0.727 | Revisions Net=+2 | Analysts=6
EPS next Year (2026-12-31): EPS=25.62 | Chg30d=+0.991 | Revisions Net=+10 | Growth EPS=+15.9% | Growth Revenue=+5.3%
Additional Sources for CMI Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle