(CMI) Cummins - Ratings and Ratios
Engines, Generators, Turbochargers, Transmissions, Fuel
CMI EPS (Earnings per Share)
CMI Revenue
Description: CMI Cummins September 26, 2025
Cummins Inc. (NYSE:CMI) delivers a broad portfolio of power solutions across five operating segments-Engine, Distribution, Components, Power Systems, and Accelera-serving original equipment manufacturers, distributors, dealers, and end-users worldwide.
The Engine segment produces diesel and natural-gas engines for on- and off-highway applications, while the Components segment supplies drivetrain parts (axles, drivelines, brakes, suspension), aftertreatment technologies (oxidation catalysts, particulate filters, SCR systems), and core engine components such as turbochargers, fuel systems, and electronic control modules.
Power Systems offers standby and prime generators, controls, paralleling equipment, and turnkey distributed-generation solutions that run on diesel, natural gas, or emerging sustainable fuels. The Accelera segment focuses on electrified power technologies-including batteries, fuel cells, electric powertrains, and hydrogen production-positioning Cumcumns for the long-term shift toward zero-emission mobility.
Key performance indicators from the most recent fiscal year (2023) show revenue of roughly $26.7 billion, an adjusted EBITDA margin of 15.2 %, and a free-cash-flow conversion rate of 85 %, reflecting strong cash generation despite cyclical pressures in construction and transportation.
Two macro drivers are especially material: (1) Global freight volumes, which have rebounded to 95 % of pre-pandemic levels, underpin demand for heavy-duty engines and generators; and (2) tightening emissions regulations in Europe and China, accelerating adoption of Cummins’ aftertreatment and electrification solutions.
Sector-specific trends such as the rapid growth of electric-assist trucks and the increasing share of renewable natural gas in the power-generation mix create both near-term upside and longer-term strategic risk, making the company’s diversification across combustion, hybrid, and pure-electric technologies a critical hedge.
For a deeper quantitative assessment, the ValueRay platform offers a granular breakdown of Cummins’ valuation drivers.
CMI Stock Overview
| Market Cap in USD | 60,310m |
| Sub-Industry | Construction Machinery & Heavy Transportation Equipment |
| IPO / Inception | 1984-12-18 |
CMI Stock Ratings
| Growth Rating | 73.8% |
| Fundamental | 78.3% |
| Dividend Rating | 58.8% |
| Return 12m vs S&P 500 | 12.0% |
| Analyst Rating | 3.46 of 5 |
CMI Dividends
| Dividend Yield 12m | 2.21% |
| Yield on Cost 5y | 4.67% |
| Annual Growth 5y | 7.29% |
| Payout Consistency | 75.0% |
| Payout Ratio | 45.1% |
CMI Growth Ratios
| Growth Correlation 3m | 79.1% |
| Growth Correlation 12m | 40% |
| Growth Correlation 5y | 77.8% |
| CAGR 5y | 24.74% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.81 |
| CAGR/Mean DD 3y (Pain Ratio) | 3.43 |
| Sharpe Ratio 12m | 0.78 |
| Alpha | 12.22 |
| Beta | 1.038 |
| Volatility | 23.65% |
| Current Volume | 775.3k |
| Average Volume 20d | 799.7k |
| Stop Loss | 415.8 (-3%) |
| Signal | -0.23 |
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (2.94b TTM) > 0 and > 6% of Revenue (6% = 2.02b TTM) |
| FCFTA 0.05 (>2.0%) and ΔFCFTA 0.97pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 19.63% (prev 11.17%; Δ 8.45pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.08 (>3.0%) and CFO 2.84b <= Net Income 2.94b (YES >=105%, WARN >=100%) |
| Net Debt (6.37b) to EBITDA (5.47b) ratio: 1.16 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.64 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (138.4m) change vs 12m ago 0.36% (target <= -2.0% for YES) |
| Gross Margin 25.63% (prev 24.31%; Δ 1.32pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 102.8% (prev 109.1%; Δ -6.27pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 13.04 (EBITDA TTM 5.47b / Interest Expense TTM 336.0m) >= 6 (WARN >= 3) |
Altman Z'' 5.27
| (A) 0.19 = (Total Current Assets 16.93b - Total Current Liabilities 10.31b) / Total Assets 34.26b |
| (B) 0.64 = Retained Earnings (Balance) 22.04b / Total Assets 34.26b |
| (C) 0.13 = EBIT TTM 4.38b / Avg Total Assets 32.79b |
| (D) 0.96 = Book Value of Equity 20.43b / Total Liabilities 21.39b |
| Total Rating: 5.27 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 78.25
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield 2.51% = 1.25 |
| 3. FCF Margin 4.90% = 1.22 |
| 4. Debt/Equity 0.74 = 2.24 |
| 5. Debt/Ebitda 1.16 = 1.53 |
| 6. ROIC - WACC (= 9.36)% = 11.70 |
| 7. RoE 27.17% = 2.26 |
| 8. Rev. Trend 55.97% = 4.20 |
| 9. EPS Trend 66.99% = 3.35 |
What is the price of CMI shares?
Over the past week, the price has changed by +3.49%, over one month by -2.31%, over three months by +19.18% and over the past year by +34.39%.
Is Cummins a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CMI is around 462.30 USD . This means that CMI is currently overvalued and has a potential downside of 7.83%.
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 | 444.7 | 3.7% |
| Analysts Target Price | 444.7 | 3.7% |
| ValueRay Target Price | 516.4 | 20.4% |
CMI Fundamental Data Overview November 05, 2025
P/E Trailing = 20.5305
P/E Forward = 17.9533
P/S = 1.7886
P/B = 5.056
P/EG = 2.1506
Beta = 1.038
Revenue TTM = 33.72b USD
EBIT TTM = 4.38b USD
EBITDA TTM = 5.47b USD
Long Term Debt = 6.81b USD (from longTermDebt, last quarter)
Short Term Debt = 1.44b USD (from shortTermDebt, last quarter)
Debt = 8.68b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 6.37b USD (from netDebt column, last quarter)
Enterprise Value = 65.92b USD (60.31b + Debt 8.68b - CCE 3.07b)
Interest Coverage Ratio = 13.04 (Ebit TTM 4.38b / Interest Expense TTM 336.0m)
FCF Yield = 2.51% (FCF TTM 1.65b / Enterprise Value 65.92b)
FCF Margin = 4.90% (FCF TTM 1.65b / Revenue TTM 33.72b)
Net Margin = 8.72% (Net Income TTM 2.94b / Revenue TTM 33.72b)
Gross Margin = 25.63% ((Revenue TTM 33.72b - Cost of Revenue TTM 25.08b) / Revenue TTM)
Gross Margin QoQ = 26.39% (prev 26.36%)
Tobins Q-Ratio = 1.92 (Enterprise Value 65.92b / Total Assets 34.26b)
Interest Expense / Debt = 1.00% (Interest Expense 87.0m / Debt 8.68b)
Taxrate = 24.24% (297.0m / 1.23b)
NOPAT = 3.32b (EBIT 4.38b * (1 - 24.24%))
Current Ratio = 1.64 (Total Current Assets 16.93b / Total Current Liabilities 10.31b)
Debt / Equity = 0.74 (Debt 8.68b / totalStockholderEquity, last quarter 11.79b)
Debt / EBITDA = 1.16 (Net Debt 6.37b / EBITDA 5.47b)
Debt / FCF = 3.85 (Net Debt 6.37b / FCF TTM 1.65b)
Total Stockholder Equity = 10.82b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.58% (Net Income 2.94b / Total Assets 34.26b)
RoE = 27.17% (Net Income TTM 2.94b / Total Stockholder Equity 10.82b)
RoCE = 24.86% (EBIT 4.38b / Capital Employed (Equity 10.82b + L.T.Debt 6.81b))
RoIC = 18.06% (NOPAT 3.32b / Invested Capital 18.39b)
WACC = 8.70% (E(60.31b)/V(68.99b) * Re(9.84%) + D(8.68b)/V(68.99b) * Rd(1.00%) * (1-Tc(0.24)))
Discount Rate = 9.84% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -81.65 | Cagr: -1.24%
[DCF Debug] Terminal Value 70.92% ; FCFE base≈1.47b ; Y1≈1.39b ; Y5≈1.31b
Fair Price DCF = 126.4 (DCF Value 17.42b / Shares Outstanding 137.8m; 5y FCF grow -7.33% → 3.0% )
EPS Correlation: 66.99 | EPS CAGR: 34.95% | SUE: 2.06 | # QB: 2
Revenue Correlation: 55.97 | Revenue CAGR: 6.16% | SUE: 0.99 | # QB: 1
Additional Sources for CMI Stock
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Fund Manager Positions: Dataroma | Stockcircle