CMI Stock Analysis: Cummins | NYSE
Specialty Industrial Machinery | NYSE, USA | Market Cap: 72.731m USD | 12M Return: 24.5% | US2310211063 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 578M
EPS Trend: 85.2%
Qual. Beats: 0
Rev. Trend: 24.3%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.7 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 U.S.-based global manufacturer of power solutions, headquartered in Columbus, Indiana, and operating since 1919. The company is organized into five business segments: Engine, Distribution, Components, Power Systems, and Accelera. Its core product portfolio includes diesel and natural gas engines, drivetrain and aftertreatment systems, transmissions, and engine components such as turbochargers, fuel systems, and electronic control modules, sold primarily to original equipment manufacturers (OEMs), distributors, and dealers across on-highway, off-highway, rail, marine, and power generation end markets. The Accelera segment extends the business into electrified power systems, including batteries, fuel cells, and electric powertrain technologies, reflecting a diversification strategy that addresses the broader industrial transition toward lower-emission and alternative-fuel power. As a member of the GICS Industrials sector (Construction Machinery & Heavy Transportation Equipment), Cummins combines equipment manufacturing with a global distribution and aftermarket parts network, supported by engineering, installation, and field-service capabilities. The company was renamed from Cummins Engine Company to Cummins Inc. in 2001 to reflect its expansion beyond engines into a broader range of power and propulsion technologies.
- Data center demand lifts Power Systems revenue and margins
- North American heavy-duty truck orders weaken on freight downturn
- Accelera losses deepen as electrification investment accelerates
| Net Income: 2.71b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 4.63 > 1.0 |
| NWC/Revenue: 22.36% < 20% (prev 19.63%; Δ 2.73% < -1%) |
| CFO/TA 0.13 > 3% & CFO 4.65b > Net Income 2.71b |
| Net Debt (4.95b) to EBITDA (4.97b): 1.00 < 3 |
| Current Ratio: 1.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (138.6m) vs 12m ago 0.14% < -2% |
| Gross Margin: 25.32% > 18% (prev 25.63%; Δ -0.31% > 0.5%) |
| Asset Turnover: 99.32% > 50% (prev 98.43%; Δ 0.90% > 0%) |
| Interest Coverage Ratio: 12.02 > 6 (EBIT TTM 3.86b / Interest Expense TTM 321.0m) |
| A: 0.22 (Total Current Assets 18.4b - Total Current Liabilities 10.7b) / Total Assets 35.6b |
| B: 0.66 (Retained Earnings 23.6b / Total Assets 35.6b) |
| C: 0.11 (EBIT TTM 3.86b / Avg Total Assets 34.9b) |
| D: 0.59 (Book Value of Equity 12.8b / Total Liabilities 21.7b) |
| Altman-Z'' = 4.96 = AAA |
| DSRI: 1.09 (Receivables 6.58b/5.87b, Revenue 34.7b/33.7b) |
| GMI: 1.01 (GM 25.63% / 25.32%) |
| AQI: 0.96 (AQ_t 0.29 / AQ_t-1 0.30) |
| SGI: 1.03 (Revenue 34.7b / 33.7b) |
| TATA: -0.05 (NI 2.71b - CFO 4.65b) / TA 35.6b) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of October 11, 2026, the stock is trading at USD 523.39 with a total of 905,652 shares traded. Over the past week, the price has changed by -0.93%, over one month by -5.65%, over three months by -21.99% and over the past year by +24.46%.
Current recommended Stop Loss: 504.20 (which is 3.7% or 1.3 ATR below the current price).
Cummins has received a consensus analysts rating of 4.13. Therefore, it is recommended to buy CMI.
- StrongBuy: 11
- Buy: 4
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 741.3 | 41.6% |
P/E Trailing = 27.024
P/E Forward = 15.3846
P/S = 2.1004
P/B = 5.6137
P/EG = 1.0562
Revenue TTM = 34.7b USD
EBIT TTM = 3.86b USD
EBITDA TTM = 4.97b USD
Long Term Debt = 6.74b USD (from longTermDebt, last quarter)
Short Term Debt = 1.10b USD (from shortTermDebt, last quarter)
Debt = 8.88b USD (from shortLongTermDebtTotal, last quarter) + Leases 591.0m
Net Debt = 4.95b USD (calculated: Debt 8.88b - CCE 3.92b)
Enterprise Value = 77.7b USD (72.7b + Debt 8.88b - CCE 3.92b)
Interest Coverage Ratio = 12.02 (Ebit TTM 3.86b / Interest Expense TTM 321.0m)
EV/FCF = 23.07x (Enterprise Value 77.7b / FCF TTM 3.37b)
FCF Yield = 4.33% (FCF TTM 3.37b / Enterprise Value 77.7b)
FCF Margin = 9.70% (FCF TTM 3.37b / Revenue TTM 34.7b)
Net Margin = 7.82% (Net Income TTM 2.71b / Revenue TTM 34.7b)
Gross Margin = 25.32% ((Revenue TTM 34.7b - Cost of Revenue TTM 25.9b) / Revenue TTM)
Gross Margin QoQ = 26.07% (prev 26.71%)
Tobins Q-Ratio = 2.18 (Enterprise Value 77.7b / Total Assets 35.6b)
Interest Expense / Debt = 3.62% (Interest Expense 321.0m / Debt 8.88b)
Taxrate = 26.53% (1.02b / 3.85b)
NOPAT = 2.84b (EBIT 3.86b * (1 - 26.53%))
Current Ratio = 1.73 (Total Current Assets 18.4b / Total Current Liabilities 10.7b)
Debt / Equity = 0.69 (Debt 8.88b / totalStockholderEquity, last quarter 12.8b)
Debt / EBITDA = 1.00 (Net Debt 4.95b / EBITDA 4.97b)
Debt / FCF = 1.47 (Net Debt 4.95b / FCF TTM 3.37b)
Total Stockholder Equity = 12.4b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.77% (Net Income 2.71b / Total Assets 35.6b)
RoE = 21.89% (Net Income TTM 2.71b / Total Stockholder Equity 12.4b)
RoCE = 20.16% (EBIT 3.86b / Capital Employed (Equity 12.4b + L.T.Debt 6.74b))
RoIC = 11.66% (NOPAT 2.84b / Invested Capital 24.3b)
WACC = 10.89% (E(72.7b)/V(81.6b) * Re(11.90%) + D(8.88b)/V(81.6b) * Rd(3.62%) * (1-Tc(0.27)))
Discount Rate = 11.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -30.68 | Cagr: -1.10%
[DCF] Terminal Value 70.20% ; FCFF base≈2.68b ; Y1≈3.07b ; Y5≈4.52b
[DCF] Fair Price = 304.8 (EV 46.9b - Net Debt 4.95b = Equity 42.0b / Shares 137.7m; r=10.89% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 85.20 | EPS CAGR: 6.08% | SUE: -0.55 | # QB: 0
Revenue Correlation: 24.34 | Revenue CAGR: 0.29% | SUE: 0.78 | # QB: 0
EPS current Quarter (2026-09-30): EPS=8.41 | Chg30d=+0.13% | Revisions=+38% | Analysts=9
EPS current Year (2026-12-31): EPS=28.60 | Chg30d=+0.10% | Revisions=+22% | GrowthEPS=+39.5% | GrowthRev=+11.9%
EPS next Year (2027-12-31): EPS=33.73 | Chg30d=+0.01% | Revisions=+25% | GrowthEPS=+18.0% | GrowthRev=+9.1%
[Analyst] Revisions Ratio: +40% (up=9, down=3)