(CMI) Cummins - NYSE
Sector: Industrials | Industry: Specialty Industrial Machinery | Exchange: NYSE (USA) | Market Cap: 90.478m USD | Total Return: 105.9% in 12m
Avg Turnover: 652M
EPS Trend: 46.0%
Qual. Beats: 0
Rev. Trend: 37.4%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
Rs Leader, Idiosyncratic Leader, Confidence
Cummins Inc. (CMI) is a global provider of power solutions, operating through five primary segments: Engine, Distribution, Components, Power Systems, and Accelera. The company designs, manufactures, and services a broad portfolio of diesel, natural gas, electric, and hybrid powertrains, alongside integrated components such as turbochargers, fuel systems, and automated transmissions.
The business model relies on a mix of original equipment manufacturer (OEM) sales and a robust aftermarket distribution network that provides recurring revenue through parts and field-based repair services. As the industrial sector shifts toward decarbonization, Cummins is increasingly diversifying into electrified power systems, hydrogen fuel cells, and battery energy storage technologies.
The heavy machinery industry is characterized by high capital intensity and cyclical demand, often trailing broader infrastructure and logistics spending trends. Examining the historical valuation metrics on ValueRay can provide further context on how the market prices these cycles.
Founded in 1919 and headquartered in Columbus, Indiana, the company maintains a global footprint, selling to commercial vehicle manufacturers, construction firms, and power generation providers.
- North American heavy-duty truck production cycles dictate engine segment revenue growth
- Global emissions standards drive demand for high-margin aftertreatment and filtration systems
- Accelera segment profitability depends on commercial adoption of hydrogen fuel cell technology
- Raw material price volatility and supply chain logistics impact manufacturing margins
- Infrastructure spending and data center expansion fuel power systems generator demand
| 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 (4.93b): 1.14 < 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: 11.62 > 6 (EBIT TTM 3.81b / 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: 0.11 (EBIT TTM 3.81b / Avg Total Assets 33.5b) |
| D: 0.59 (Book Value of Equity 12.4b / Total Liabilities 21.1b) |
| Altman-Z'' = 4.93 = AAA |
| DSRI: 1.15 (Receivables 6.53b/5.68b, Revenue 33.9b/33.9b) |
| GMI: 0.99 (GM 25.25% / 25.39%) |
| AQI: 0.86 (AQ_t 0.28 / AQ_t-1 0.33) |
| SGI: 1.00 (Revenue 33.9b / 33.9b) |
| TATA: -0.04 (NI 2.67b - CFO 3.93b) / TA 34.4b) |
| Beneish M = -3.00 (Cap -4..+1) = A |
As of June 12, 2026, the stock is trading at USD 655.69 with a total of 1,014,926 shares traded.
Over the past week, the price has changed by -3.30%,
over one month by -6.39%,
over three months by +18.27% and
over the past year by +105.88%.
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 | 740.1 | 12.9% |
P/E Trailing = 34.0088
P/E Forward = 22.9358
P/S = 2.6694
P/B = 7.3256
P/EG = 1.5763
Revenue TTM = 33.9b USD
EBIT TTM = 3.81b USD
EBITDA TTM = 4.93b 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 = 96.1b USD (90.5b + Debt 8.79b - CCE 3.18b)
Interest Coverage Ratio = 11.62 (Ebit TTM 3.81b / Interest Expense TTM 328.0m)
EV/FCF = 35.98x (Enterprise Value 96.1b / FCF TTM 2.67b)
FCF Yield = 2.78% (FCF TTM 2.67b / Enterprise Value 96.1b)
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 = 2.79 (Enterprise Value 96.1b / Total Assets 34.4b)
Interest Expense / Debt = 3.73% (Interest Expense 328.0m / Debt 8.79b)
Taxrate = 26.27% (993.0m / 3.78b)
NOPAT = 2.81b (EBIT 3.81b * (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 = 1.14 (Net Debt 5.61b / EBITDA 4.93b)
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 = 20.19% (EBIT 3.81b / Capital Employed (Equity 12.1b + L.T.Debt 6.73b))
RoIC = 11.86% (NOPAT 2.81b / Invested Capital 23.7b)
WACC = 9.96% (E(90.5b)/V(99.3b) * Re(10.66%) + D(8.79b)/V(99.3b) * Rd(3.73%) * (1-Tc(0.26)))
Discount Rate = 10.66% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 17.98 | Cagr: -0.98%
[DCF] Terminal Value 72.94% ; FCFF base≈1.61b ; Y1≈1.84b ; Y5≈2.71b
[DCF] Fair Price = 189.3 (EV 31.7b - Net Debt 5.61b = Equity 26.1b / Shares 138.0m; r=9.96% [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=7.26 | Chg30d=+0.93% | Revisions=+64% | Analysts=8
EPS next Quarter (2026-09-30): EPS=7.79 | Chg30d=+2.31% | Revisions=+64% | Analysts=8
EPS current Year (2026-12-31): EPS=28.16 | Chg30d=-0.89% | Revisions=+64% | GrowthEPS=+37.4% | GrowthRev=+10.6%
EPS next Year (2027-12-31): EPS=32.21 | Chg30d=+0.29% | Revisions=+67% | GrowthEPS=+14.4% | GrowthRev=+7.3%
[Analyst] Revisions Ratio: +67%