Cummins (CMI)
Industrials · $72.9B market cap · SEC CIK 0000026172
fundamentals score out of 100
Next reports on Nov 4, 2026, before the open, with analysts expecting $8.32 in earnings per share.
The case for CMI
- Pays a 3.0% dividend while you wait.
- Has compounded revenue at 11.2% a year over five years.
- Return on equity of 22%.
The case against
- Priced at 26.8× earnings while earnings per share are shrinking (-8.0%).
- Earnings per share fell 8.0%.
- Profitability is weak (37/100): return on equity 22%, net margin 7.8%, gross margin 26%.
- The price trend is weak (42/100): +26.2% over a year, -25.4% over three months, 37% of the way up its 52-week range.
- Revenue grew only 2.9%, roughly the pace of inflation.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 54 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 48 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 37 |
| Momentumhow the price has behaved lately | 42 |
| Stabilityhow violently it moves, what it owes and what it pays you | 51 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 26.8× |
|---|---|
| Price / book | 7.66× |
| Price / sales | 2.1× |
| Revenue growth (YoY) | +2.9% |
| EPS growth (YoY) | -8.0% |
| Gross margin | 26% |
| Operating margin | 11% |
| Net margin | 8% |
| Return on equity | 22% |
| Debt / equity | 0.60× |
| Current ratio | 1.73 |
| Dividend yield | 2.98% |
| Beta | 1.24 |
| 52-week range | $400.72 – $737.76 |
| Position in that range | 37% of the way up |
| 3-month return | -25.4% |
| 1-year return | +26.2% |
Five years of financials, as filed
Pulled from Cummins's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $33.7B | $34.1B | $34.1B | $28.1B | $24.0B |
| Gross profit | $8.5B | $8.4B | $8.2B | $6.7B | $5.7B |
| Operating income | $4.0B | $3.8B | $1.8B | $2.9B | $2.7B |
| Operating cash flow | $3.6B | $1.5B | $4.0B | $2.0B | $2.3B |
| Capital expenditure | $1.2B | $1.2B | $1.2B | $916M | $734M |
| Total assets | $34.0B | $31.5B | $32.0B | $30.3B | $23.7B |
| Total liabilities | $20.6B | $20.2B | $22.1B | $20.1B | $14.3B |
| Shareholder equity | $12.3B | $10.3B | $8.8B | $9.0B | $8.1B |
| Cash | $2.8B | $1.7B | $2.2B | $2.0B | $2.6B |
| Free cash flow | $2.4B | $279M | $2.8B | $1.0B | $1.5B |
| Gross margin | 25.3% | 24.7% | 24.2% | 23.9% | 23.7% |
| Operating margin | 12.0% | 11.0% | 5.2% | 10.4% | 11.3% |
| Diluted shares | 139M | 139M | 143M | 142M | 146M |
Share count is down 4.9% over 4 years. Buybacks have been shrinking the pie.
What Cummins says it does
OVERVIEW We were founded in 1919 as Cummins Engine Company, a corporation in Columbus, Indiana, and one of the first diesel engine manufacturers. In 2001, we changed our name to Cummins Inc. We are a global power leader committed to powering a more prosperous world. Since 1919, we have delivered innovative solutions that move people, goods and economies forward. Our five reportable segments - Engine, Components, Distribution, Power Systems and Accelera - offer a broad portfolio, including advanced diesel, electric and hybrid powertrains; integrated power generation systems; critical components such as aftertreatment, turbochargers, fuel systems, controls, transmissions, axles and brakes; and zero emissions technologies like battery and electric powertrain systems. With a global footprint, deep technical expertise and an extensive service network, we deliver dependable, cutting-edge solutions tailored to our customers' needs, supporting…
Risk factors CMI lists in its 10-K
- Evolving environmental and climate change legislation and regulatory initiatives may adversely impact our operations, could impact the competitive landscape within our markets and could negatively affect demand for our products
- We operate our business on a global basis and changes in tariffs and other trade disruptions could adversely impact the demand for our products and our competitive position
- Deregulation could impair our investments in future products and negatively impact our long-term growth and competitiveness
- Unanticipated changes in our effective tax rate, the adoption of new tax legislation or exposure to additional income tax liabilities could adversely affect our profitability
- Our global operations are subject to laws and regulations that impose significant compliance costs and create reputational and legal risk
- Future bans or limitations on the use of diesel-powered vehicles or other applications could have a material adverse impact on our business over the long term
- We are vulnerable to raw material, transportation and labor price fluctuations and supply shortages, which impacted and could continue to impact our results of operations, financial condition and cash flows
- We face the challenge of accurately aligning our capacity with our demand
- We derive significant earnings from investees that we do not directly control, with more than 50 percent of these earnings from our China-based investees
- Our products are subject to recall for performance or safety-related issues
- Our products are exposed to variability in material and commodity costs
- Lower-than-anticipated market acceptance of our new or existing products or services could have a material adverse impact on our results of operations, financial condition and cash flows
- Our business is exposed to potential product liability claims
- Our business and operations are subject to interest rate risks, and changes in interest rates can reduce demand for our products and increase borrowing costs and result in non-cash charges