CMI Stock Analysis: Cummins | NYSE
Specialty Industrial Machinery | NYSE, USA | Market Cap: 91.307m USD | 12M Return: 102% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 715M
EPS Trend: 46.0%
Qual. Beats: 0
Rev. Trend: 37.4%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Cummins Inc. (NYSE: CMI) is a global manufacturer of power solutions operating through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company produces diesel and natural gas engines, drivetrain systems (axles, drivelines, brakes, suspension), aftertreatment components, turbochargers, fuel systems, valvetrain technologies, and automated and automatic transmissions for internal combustion engines. It also supplies power generation systems, standby and prime power generators, and high-horsepower engines for heavy-duty and medium-duty applications, along with aftermarket parts and in-shop and field-based repair services.
Through its Accelera segment, Cummins is positioning in the energy transition by offering electrified power systems, including batteries, fuel cells, electric powertrain technologies, and turnkey distributed generation solutions that integrate natural gas, diesel, battery energy storage, and alternative sustainable fuels. The company sells primarily to original equipment manufacturers (OEMs), distributors, and dealers across on-highway, off-highway, and industrial markets. Classified within the GICS Construction Machinery & Heavy Transportation Equipment sub-industry, Cummins serves cyclical end-markets such as commercial trucking, construction, mining, and industrial power generation. Founded in 1919 and headquartered in Columbus, Indiana, the company was renamed from Cummins Engine Company to Cummins Inc. in 2001.
- Data center power demand boosts Power Systems segment orders
- North American heavy-duty truck demand weakens amid freight recession
- Accelera electrification losses pressure consolidated profit margins
| Net Income: 2.67b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 7.73 > 1.0 |
| NWC/Revenue: 21.28% < 20% (prev 11.71%; Δ 9.57% < -1%) |
| CFO/TA 0.11 > 3% & CFO 3.93b > Net Income 2.67b |
| Net Debt (5.61b) to EBITDA (5.09b): 1.10 < 3 |
| Current Ratio: 1.71 > 1.5 & < 3 |
| Outstanding Shares: last quarter (138.8m) vs 12m ago 0.36% < -2% |
| Gross Margin: 25.39% > 18% (prev 25.25%; Δ 0.13% > 0.5%) |
| Asset Turnover: 101.2% > 50% (prev 104.1%; Δ -2.91% > 0%) |
| Interest Coverage Ratio: 12.15 > 6 (EBIT TTM 3.99b / Interest Expense TTM 328.0m) |
| A: 0.21 (Total Current Assets 17.4b - Total Current Liabilities 10.2b) / Total Assets 34.4b |
| B: 0.67 (Retained Earnings 23.0b / Total Assets 34.4b) |
| C: 0.12 (EBIT TTM 3.99b / Avg Total Assets 33.5b) |
| D: 0.59 (Book Value of Equity 12.4b / Total Liabilities 21.1b) |
| Altman-Z'' = 4.97 = AAA |
| DSRI: 1.15 (Receivables 6.53b/5.68b, Revenue 33.9b/33.9b) |
| GMI: 0.99 (GM 25.25% / 25.39%) |
| AQI: 0.90 (AQ_t 0.28 / AQ_t-1 0.31) |
| SGI: 1.00 (Revenue 33.9b / 33.9b) |
| TATA: -0.04 (NI 2.67b - CFO 3.93b) / TA 34.4b) |
| Beneish M = -2.97 (Cap -4..+1) = A |
As of July 12, 2026, the stock is trading at USD 675.95 with a total of 572,896 shares traded. Over the past week, the price has changed by +2.15%, over one month by +7.21%, over three months by +10.05% and over the past year by +101.97%.
Current recommended Stop Loss: 608.00 (which is 10.1% or 2.5 ATR below the current price).
Cummins has received a consensus analysts rating of 3.46. Therefore, it is recommended to hold CMI.
- StrongBuy: 5
- Buy: 3
- Hold: 15
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 753.3 | 11.4% |
P/E Trailing = 34.3562
P/E Forward = 23.1481
P/S = 2.6939
P/B = 7.3927
P/EG = 1.5907
Revenue TTM = 33.9b USD
EBIT TTM = 3.99b USD
EBITDA TTM = 5.09b USD
Long Term Debt = 6.73b USD (from longTermDebt, last quarter)
Short Term Debt = 1.09b USD (from shortTermDebt, last quarter)
Debt = 8.79b USD (from shortLongTermDebtTotal, last quarter) + Leases 554.0m
Net Debt = 5.61b USD (calculated: Debt 8.79b - CCE 3.18b)
Enterprise Value = 96.9b USD (91.3b + Debt 8.79b - CCE 3.18b)
Interest Coverage Ratio = 12.15 (Ebit TTM 3.99b / Interest Expense TTM 328.0m)
EV/FCF = 36.29x (Enterprise Value 96.9b / FCF TTM 2.67b)
FCF Yield = 2.76% (FCF TTM 2.67b / Enterprise Value 96.9b)
FCF Margin = 7.88% (FCF TTM 2.67b / Revenue TTM 33.9b)
Net Margin = 7.89% (Net Income TTM 2.67b / Revenue TTM 33.9b)
Gross Margin = 25.39% ((Revenue TTM 33.9b - Cost of Revenue TTM 25.3b) / Revenue TTM)
Gross Margin QoQ = 26.71% (prev 22.86%)
Tobins Q-Ratio = 2.81 (Enterprise Value 96.9b / Total Assets 34.4b)
Interest Expense / Debt = 3.73% (Interest Expense 328.0m / Debt 8.79b)
Taxrate = 26.27% (993.0m / 3.78b)
NOPAT = 2.94b (EBIT 3.99b * (1 - 26.27%))
Current Ratio = 1.71 (Total Current Assets 17.4b / Total Current Liabilities 10.2b)
Debt / Equity = 0.71 (Debt 8.79b / totalStockholderEquity, last quarter 12.4b)
Debt / EBITDA = 1.10 (Net Debt 5.61b / EBITDA 5.09b)
Debt / FCF = 2.10 (Net Debt 5.61b / FCF TTM 2.67b)
Total Stockholder Equity = 12.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.98% (Net Income 2.67b / Total Assets 34.4b)
RoE = 22.02% (Net Income TTM 2.67b / Total Stockholder Equity 12.1b)
RoCE = 21.13% (EBIT 3.99b / Capital Employed (Equity 12.1b + L.T.Debt 6.73b))
RoIC = 12.41% (NOPAT 2.94b / Invested Capital 23.7b)
WACC = 10.23% (E(91.3b)/V(100b) * Re(10.95%) + D(8.79b)/V(100b) * Rd(3.73%) * (1-Tc(0.26)))
Discount Rate = 10.95% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -10.54 | Cagr: -1.25%
[DCF] Terminal Value 72.14% ; FCFF base≈1.61b ; Y1≈1.84b ; Y5≈2.71b
[DCF] Fair Price = 181.0 (EV 30.6b - Net Debt 5.61b = Equity 25.0b / Shares 138.0m; r=10.23% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 45.99 | EPS CAGR: 24.58% | SUE: -0.26 | # QB: 0
Revenue Correlation: 37.41 | Revenue CAGR: 0.69% | SUE: 0.19 | # QB: 0
EPS current Quarter (2026-06-30): EPS=7.29 | Chg30d=+0.38% | Revisions=+40% | Analysts=8
EPS next Quarter (2026-09-30): EPS=7.75 | Chg30d=+0.13% | Revisions=+0% | Analysts=8
EPS current Year (2026-12-31): EPS=28.36 | Chg30d=+0.85% | Revisions=+70% | GrowthEPS=+38.4% | GrowthRev=+10.6%
EPS next Year (2027-12-31): EPS=32.30 | Chg30d=+1.17% | Revisions=+73% | GrowthEPS=+13.9% | GrowthRev=+7.6%
[Analyst] Revisions Ratio: +77% (up=18, down=1)