Cummins Inc (CMI)

Industrials · Construction Machinery & Heavy Transportation Equipment · US stock · S&P 500 component

$519.53 ▼ -22.68 (4.18%)

At close 22 Oct 2026 · USD · Volume 1,306,307

Compare with CAT

Interactive chart Research report Forecast ranges Pro workspace SEC filings Historical data

Fair valueFair

$464 −10.6% to fair value

$232fair band $395–$563$697

Day's range

$512.01 – $534.04

52-week range

$407.57 – $737.76

About Cummins Inc

Cummins designs, manufactures and services engines and related power products. These include diesel and natural gas engines for trucks, buses and construction equipment, as well as generator sets, filtration, emissions systems and components for electric and hydrogen-based power. Revenue comes from selling engines and parts to equipment makers and distributors, and from aftermarket parts and service. Its results follow cycles in trucking, construction and mining.

Revenue over the last twelve months came to $34.7 billion. Revenue growth over three years averaged 6.2% a year. Operating margin is 11.2% and return on invested capital is 18%. Net debt to EBITDA is 0.7 times. It pays a dividend with a yield of 1.6%. The X-Ray Score is 54 out of 100. These figures describe past results as reported and are a factual snapshot, not a forecast. Some measures, such as margins for real estate trusts and banks, are defined differently from those of industrial firms, so comparisons should be made with care.

Price chart

Interactive chart Historical data & CSV

52-wk range $407.57 – $737.76Volume 1,306,307Daily, split-adjusted

Vitals

Market cap$72.0B

52-week range$407.57 – $737.76

Volume (last day)1,306,307

P/E (TTM)25.5

EBIT / EV yield5.1%

Free-cash-flow yield4.7%

Dividend yield1.6%

Revenue (TTM)$34.7B

Net income (TTM)$2.8B

Operating margin11.2%

Return on capital17.7%

Debt incl. leases$7.2B

Cash & securities$3.9B

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$464middle half of models $434 – $516

Fair −10.6% to fair value

Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.

Price $520

Undervalued < $395Fair $395 – $563Overvalued > $563

P/E multiple

$488

P/B multiple

$430

P/S multiple

$532

EV/EBITDA multiple

$525

EV/EBIT multiple

$457

EV/revenue multiple

$536

10-year DCF, EBITDA exit

$491

5-year DCF, EBITDA exit

$507

10-year DCF, revenue exit

$498

5-year DCF, revenue exit

$511

10-year DCF, growth exit

$370

5-year DCF, growth exit

$359

Dividend discount, stable

$304

Dividend discount, multi-stage

$522

Earnings power value

$438

Growth the price implies

17.6%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.

What this means

Average business, fairly priced

The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better ✓ 55 The price is not above fair value $464 fair value Debt looks manageable 0.7× EBITDA Revenue has been growing 6.2% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.

Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data

Valuation Fair

56/100

Priced about in line with its sector.

See the numbers →

EBIT / EV yield5.1%

Free-cash-flow yield4.7%

Fair value vs price0.9×

Growth Weak

47/100

Growing slower than most of its sector.

See the numbers →

Revenue growth (3y)6.2%

EPS growth (3y)10.7%

Growth consistency50%

Profitability Fair

51/100

Returns on capital are typical for its sector.

See the numbers →

Return on invested capital17.7%

Operating margin11.2%

Gross profitability24.7%

Financial health Fair

59/100

Balance sheet is in typical shape for its sector.

See the numbers →

Piotroski F-Score6 / 9

Net debt / EBITDA0.7×

Interest cover12.1×

Dividends Fair

57/100

Dividend is typical for its sector.

See the numbers →

Dividend yield1.6%

Dividends vs free cash flow34%

Dividend growth7.3%

Quarterly results: last 6 quarters

-2.7%

Mar '25

-1.7%

Jun '25

-1.6%

Sep '25

+1.1%

Dec '25

+2.7%

Mar '26

+9.4%

Jun '26

Revenue against the same quarter a year earlier. Latest quarter revenue $9.5B, diluted EPS $6.73.

Compare with peers

CAT Caterpillar Inc43 WAB Westinghouse Air Brake...42 PCAR Paccar Inc41

Other Construction Machinery & Heavy Transportation Equipment companies by X-Ray Score.

SWOT analysis: Cummins Inc

Strengthsinside the company

Return on invested capital is 17.7%, against a median of 12.3% for industry peers.
Operating profit covers interest 12x, so debt costs are a small drag.

Weaknessesinside the company

No clear weakness in the figures we track.

Opportunitiesvaluation and setting

Dividends use only 34% of free cash flow, which leaves room to raise them.

Threatsvaluation and setting

Revenue growth slowed to -1.3% last year from 6.2% a year over three years.
The price trend is down on the daily and weekly signals.
Earnings in Construction Machinery & Heavy Transportation Equipment follow the industry cycle, so margins and profits can swing from year to year.

Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.

Compare CMI with peers and sector

Medians of 3 Construction Machinery & Heavy Transportation Equipment peers and of 80 Industrials stocks in our universe. Largest peers (X-Ray Score): CAT 43, PCAR 41, WAB 42.

Metric	CMI	Peers	Sector
X-Ray Score (out of 100)	54	42	50
Valuation	56	29	44
Growth	47	40	51
Profitability	51	34	50
Financial health	59	32	49
Dividends	57	60	53

Sector leaders: highest X-Ray Score in Industrials

CMI ranks #33 of 81 in Industrials and #1 of 4 in Construction Machinery & Heavy Transportation Equipment by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.

Company	X-Ray Score
#1 GD General Dynamics Corp	70
#2 EME EMCOR Group, Inc.	69
#3 PAYX Paychex Inc	69
#4 LDOS Leidos Holdings, Inc.	67
#5 SNA Snap-on Inc	66
…
#33 CMI Cummins Inc (this stock)	54

Metric	CMI	Peers	Sector
P/E ratio	25.5x	30.0x	29.3x
PEG ratio	2.38	–	2.33
Price / book	5.6x	4.2x	6.3x
Price / sales	2.1x	3.9x	3.6x
EV / EBITDA	15.2x	20.6x	18.6x
Price / free cash flow	21.4x	27.4x	25.7x
Dividend yield	1.6%	0.7%	1.3%
Gap to our fair value	−10.6%	−14.5%	−8.5%

Metric	CMI	Peers	Sector
Price change, 1 month	−1.3%	−4.6%	+2.5%
Price change, 3 months	−21.1%	−16.2%	−2.3%
Price change, 6 months	−18.2%	−12.0%	−1.2%
Price change, 1 year	+29.2%	+37.8%	+11.3%

Metric	CMI	Peers	Sector
Market value	$72.0B	$57.8B	$47.5B
Revenue (last 12 months)	$34.7B	$27.8B	$14.7B
EBITDA (last 12 months)	$5.0B	$3.8B	$2.5B
Net income (last 12 months)	$2.8B	$2.5B	$1.5B
Free cash flow (last 12 months)	$3.4B	$3.7B	$1.7B

Metric	CMI	Peers	Sector
Revenue growth, last year	−1.3%	+4.3%	+4.5%
Revenue growth, 3 years a year	+6.2%	+4.4%	+5.6%
EPS growth, 3 years a year	+10.7%	+14.2%	+5.6%
Free cash flow growth, 3 years a year	+31.6%	+13.7%	+14.4%
Dividend growth	+7.3%	+15.9%	+6.8%

Metric	CMI	Peers	Sector
Gross margin	25.3%	34.3%	38.1%
EBITDA margin	14.4%	20.7%	20.4%
Operating margin	11.2%	16.4%	17.5%
Net margin	8.1%	10.6%	12.8%
Return on invested capital	17.7%	12.3%	14.9%
Return on equity	22.0%	12.3%	23.8%

Metric	CMI	Peers	Sector
Net debt / EBITDA	0.7x	–	1.8x
Interest cover	12.1x	50.0x	21.8x
Current ratio	1.7x	–	1.2x
Piotroski F-score (0 to 9)	6	5	6

Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.

Factor ratings for CMI

Each factor is rated by where CMI stands among the 81 Industrials stocks in our universe.

Rating against the sector

Goodthe top third of these stocks

Averagethe middle third of these stocks

Badthe bottom third of these stocks

"Beats" is the share of those stocks it is ahead of.

Against its own history

The last columns set today's figure against the company's own median of its last five financial years:

▲ Betterbetter than its usual level

▼ Worseworse than its usual level

≈ In linewithin its usual range

For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.

In total: 8 Good · 10 Average · 4 Bad of 22 Growth: 0 · 2 · 1 Profitability: 0 · 3 · 2 Financial strength: 2 · 2 · 0 Valuation: 3 · 2 · 0 Cash flow: 3 · 0 · 1 Efficiency: 0 · 1 · 0

Factor	CMI	Rating	Sector median	Own 5-year median	Against own history
Growth
Revenue growth, 3 years a year	+6.2%	Average beats 56%	+5.6%	–	–
Revenue growth, last year	−1.3%	Bad beats 16%	+4.5%	+16.9%	▼ Worse
EPS growth, 3 years a year	+10.7%	Average beats 63%	+5.7%	–	–
Profitability
Gross margin	25.3%	Bad beats 16%	38.0%	24.2%	≈ In line
Operating margin	11.2%	Average beats 34%	17.5%	11.0%	≈ In line
Net margin	8.1%	Bad beats 30%	12.8%	8.8%	≈ In line
Return on invested capital	17.7%	Average beats 59%	14.9%	–	–
Return on equity	22.0%	Average beats 47%	23.7%	24.3%	≈ In line
Financial strength
Net debt / EBITDA	0.7x	Good beats 87%	1.8x	0.9x	≈ In line
Interest cover	12.1x	Average beats 34%	21.4x	12.2x	≈ In line
Current ratio	1.73	Good beats 76%	1.25	1.31	▲ Better
Piotroski F-score	6 / 9	Average beats 41%	6 / 9	–	–
Valuation
P/E ratio	25.5x	Average beats 59%	28.9x	15.8x	▼ Worse
Price / book	5.6x	Average beats 55%	6.2x	3.9x	▼ Worse
Price / sales	2.1x	Good beats 73%	3.5x	1.3x	▼ Worse
EV / EBITDA	15.2x	Good beats 69%	18.5x	11.0x	▼ Worse
Free cash flow yield	4.7%	Good beats 67%	3.8%	3.4%	▲ Better
Cash flow
Free cash flow margin	9.7%	Bad beats 29%	13.8%	6.3%	▲ Better
Cash from operations / net income	1.64	Good beats 67%	1.39	1.04	▲ Better
Free cash flow growth, 3 years a year	+31.6%	Good beats 82%	+14.5%	–	–
Accruals (lower is better)	−5.1%	Good beats 71%	−3.2%	–	–
Efficiency
Inventory turnover	4.1x	Average beats 52%	4.0x	4.3x	≈ In line

These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.

Fundamentals checklist

● 6 Good · ● 9 Average · ● 1 Bad

Cash quality

Earnings backed by cashGood

Free-cash-flow yieldAverage

Risk models

Altman Z''Good

Piotroski F-ScoreAverage

Growth

EPS growth (3y)Average

Free-cash-flow growth (3y)Good

Revenue growth (3y)Average

Growth consistencyBad

Balance sheet

Current ratioGood

Net debt / EBITDAGood

Interest coverAverage

Valuation

Fair value vs priceAverage

EBIT / EV yieldGood

Profitability

Return on invested capitalAverage

Operating marginAverage

Gross profitabilityAverage

Each check is graded against the company's sector, not a fixed number. Checklist score 58/100.

Financials

	FY21	FY22	FY23	FY24	FY25
Revenue	$24.0B	$28.1B	$34.1B	$34.1B	$33.7B
Operating income	$2.7B	$2.9B	$1.8B	$3.8B	$4.0B
Net income	$2.2B	$2.2B	$840M	$4.1B	$3.0B
Operating cash flow	$2.3B	$2.0B	$4.0B	$1.5B	$3.6B
Operating margin	11.3%	10.4%	5.2%	11.0%	12.0%
Free cash flow	$1.5B	$1.0B	$2.8B	$279M	$2.4B
Diluted EPS	$14.61	$15.12	$5.15	$28.37	$20.50

Fiscal years, from SEC filings.

Technical summary

Daily

Strongly bearish

0 bullish · 4 neutral · 12 bearish

Weekly

Bearish

3 bullish · 1 neutral · 8 bearish

Monthly

Bullish

5 bullish · 1 neutral · 2 bearish

Moving averages (daily)

SMA 10	529.1	Bearish
EMA 10	528.9	Bearish
SMA 20	525.7	Bearish
EMA 20	530.3	Bearish
SMA 50	548.8	Bearish
EMA 50	552.1	Bearish
SMA 100	606.4	Bearish
EMA 100	576.3	Bearish
SMA 200	601.2	Bearish
EMA 200	568.6	Bearish

Oscillators (daily)

RSI (14)	42.72	Neutral
MACD (12, 26)	-4.76	Bearish
Momentum (12)	-2.95	Bearish
Stochastic %K (14)	20.65	Neutral
Williams %R (14)	-79.35	Neutral
CCI (20)	-48.78	Neutral

Pivot points (classic, last session)

487.7

499.8

509.7

Pivot

521.9

531.7

543.9

553.7

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

Dividends

Paid, last 12 months

8.20 USD

Yield on today's price

1.58%

Frequency

Quarterly

Next ex-dividend date

20 Nov 2026

Ex-dividend date	Amount per share
20 Nov 2026 (upcoming)	2.2000
21 Aug 2026	2.2000
22 May 2026	2.0000
20 Feb 2026	2.0000
21 Nov 2025	2.0000
22 Aug 2025	2.0000
23 May 2025	1.8200
21 Feb 2025	1.8200
22 Nov 2024	1.8200
23 Aug 2024	1.8200
23 May 2024	1.6800
22 Feb 2024	1.6800

Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.

ETFs that hold CMI

ETF	Share of the fund
XLI Industrial Select Sector SPDR	1.71%
VOE Vanguard Mid-Cap Value	1.70%
VIS Vanguard Industrials	1.26%
FIDU Fidelity MSCI Industrials Index	1.25%
RSPN Invesco S&P 500 Equal Weight Industria...	1.19%
WTAI WisdomTree Artificial Intelligence and...	1.10%
IYJ iShares U.S. Industrials	1.05%
VO Vanguard Mid-Cap	0.95%

The eight funds with the largest weight in CMI among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.