Industrials · Construction Machinery & Heavy Transportation Equipment · US stock · price as of 22 Oct 2026
Key indicators
Price
$519.53
52-week range
$407.57 – $737.76
Market cap
$72.0B
P/E (trailing)
25.5×
EV / EBITDA
15.0×
Free-cash-flow yield
4.7%
Dividend yield
1.6%
Revenue (last 12 months)
$34.7B
Revenue growth (3y a year)
6.2%
Operating margin
11.2%
Return on invested capital
17.7%
Net debt / EBITDA
0.7×
Fair value
Fair value (average of valid models)$464.46 middle half of models $434 – $516
Versus priceFair−11% to fair value
P/E multiple
$487.53
P/B multiple
$429.65
P/S multiple
$532.26
EV/EBITDA multiple
$524.62
EV/EBIT multiple
$456.65
EV/revenue multiple
$536.37
10-year DCF, EBITDA exit
$491.43
5-year DCF, EBITDA exit
$506.56
10-year DCF, revenue exit
$497.61
5-year DCF, revenue exit
$511.00
10-year DCF, growth exit
$370.28
5-year DCF, growth exit
$359.22
Dividend discount, stable
$304.23
Dividend discount, multi-stage
$521.62
Earnings power value
$437.94
Model uncertainty
Medium
X-Ray Score
54/ 100 · High confidence · ahead of 59% of sector peers
Valuation56
Growth47
Profitability51
Financial health59
Dividends57
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
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%. 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.
StocksXray gives Cummins Inc an X-Ray Score of 54 out of 100 (high confidence), ahead of 59% of the S&P 500 stocks in its sector. Its strongest lens is financial health (59) and its weakest is growth (47).
Our fair value (the average of the valid models) is $464.46 (range $433.80 to $516.31). At $519.53 the stock trades 12% above that value, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Cummins Inc (CMI)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$195.74
$223.32
$227.16
$338.29
$505.27
$519.53
Market cap
$28.6B
$31.8B
$32.4B
$47.1B
$70.1B
$72.0B
P/E
13.4×
14.8×
44.1×
11.9×
24.6×
25.5×
EV / revenue
1.3×
1.4×
1.1×
1.5×
2.2×
2.2×
EV / EBITDA
9.0×
10.2×
13.3×
10.9×
14.6×
15.2×
Price / free cash flow
18.8×
30.4×
11.8×
168.7×
29.4×
21.4×
Free-cash-flow yield
5.3%
3.3%
8.5%
0.6%
3.4%
4.7%
Price / book
3.5×
3.5×
3.7×
4.6×
5.7×
5.6×
Dividend yield
2.86%
2.70%
2.86%
2.07%
1.51%
1.58%
Fundamentals checklist ● 6 Good · ● 9 Average · ● 1 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−5.1%Good
Free-cash-flow yield4.7%Average
Risk models
Altman Z score4.9×Good
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)10.7%Average
Free-cash-flow growth (3y)31.6%Good
Revenue growth (3y)6.2%Average
Growth consistency50%Bad
Balance sheet
Current ratio1.7×Good
Net debt / EBITDA0.7×Good
Interest cover12.1×Average
Valuation
Fair value vs price0.9×Average
EBIT / EV yield5.1%Good
Profitability
Return on invested capital17.7%Average
Operating margin11.2%Average
Gross profitability24.7%Average
XStocksXray
Cummins Inc (CMI)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
24,021
28,074
34,065
34,102
33,670
34,708
Gross profit
5,695
6,719
8,249
8,439
8,516
8,788
Operating income
2,706
2,929
1,761
3,750
4,025
3,893
Net income
2,164
2,183
840
4,068
2,957
2,827
Diluted EPS ($)
14.61
15.12
5.15
28.37
20.50
20.38
Free cash flow
1,522
1,046
2,753
279
2,386
3,367
Gross margin
23.7%
23.9%
24.2%
24.7%
25.3%
25.3%
Operating margin
11.3%
10.4%
5.2%
11.0%
12.0%
11.2%
Net margin
9.0%
7.8%
2.5%
11.9%
8.8%
8.1%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
23,710
30,299
32,005
31,540
33,992
35,630
Cash
2,592
2,020
2,179
1,671
2,845
3,179
Total debt
3,951
7,645
6,416
6,703
7,239
7,236
Equity
8,146
8,975
8,850
10,271
12,349
12,847
Dividend per share ($)
5.60
6.04
6.50
7.00
7.64
8.00
Revenue and net income US$ billions: navy revenue, teal net income
Margins blue gross, teal operating, brown net
Latest quarters
Mar 2025
Jun 2025
Sep 2025
Dec 2025
Mar 2026
Jun 2026
Revenue ($M)
8,174
8,643
8,317
8,536
8,398
9,457
Growth vs a year earlier
−2.7%
−1.7%
−1.6%
+1.1%
+2.7%
+9.4%
Net income ($M)
850
928
559
620
680
968
Diluted EPS ($)
5.96
6.43
3.86
–
4.71
6.73
XStocksXray
Cummins Inc (CMI)
Peers in Construction Machinery & Heavy Transportation Equipment
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
