CMI — Cummins Inc. $713.21

Generated 2026-06-30 21:49

Quality Scorecard Stable

C59/100
🟡 Pricing power (gross margin) 26% Gross margin 26% — moderate margins
Return on equity 22% ROE 22% — high returns on capital
Leverage (net debt / EBITDA) 1.0x Net debt / EBITDA 1.0x — low leverage
Interest coverage 12x EBIT covers interest 12x — comfortably covered
🟡 Earnings consistency (revenue) 1/3 down 1 revenue-down year(s) in 3 — one down year
Earnings growth (net income YoY) -28% Net income -28% YoY — earnings declining
Cash conversion (CFO/NI) 127% Operating cash ÷ net income 127% — earnings convert to cash
🟡 Operating margin trend flat Operating margin flat
Free cash flow margin 7% FCF margin 7% — thin / negative
🟡 Returns capital to shareholders yes dividend ~1.2%; shares +0.6%/yr
🟡 Buyback efficiency (net share-count Δ) +0.6%/yr Shares outstanding +0.6% YoY — roughly flat

Stable-stage checklist (proxy metrics from yfinance). 11 of 11 criteria scored. Not financial advice.

Buy-Now Score

43/100
Quality ×40%59
Trajectory ×30%27
Valuation ×30%39

Comparative rank: 40% Quality + 30% Trajectory + 30% Valuation — higher = better buy now. Not financial advice.

Valuation

$152.04$823.69
Price $713.21DCF $168.94 (-76%)Analyst $748.81 (+5%)MarketGist fair $632.83 (-11%)

DCF: 0% start growth → 2.5%, 10.7% discount (band $146.68–$222.06). Analyst: 19 analysts. MarketGist fair = 80% analyst + 20% DCF. Not financial advice.

Key Trends (6-yr)

GAAP EPS
▼ -27.7% YoY
Sales
▼ -1.3% YoY
Shares Outstanding
▼ -0.3% YoY

Company Overview

Basic Information

Company Name: Cummins Inc.
Symbol: CMI
Exchange: NYQ
Sector: Industrials
Industry: Specialty Industrial Machinery

Company Details

Country: United States
City: Columbus
Employees: 67,400
Market Cap: $98.42B

Business Description

Cummins Inc. offers various power solutions worldwide. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. It offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; and on- and off-highway, and other products. The company also provides aftertreatment technology and solutions comprising custom engineering systems and integrated controls, oxidation catalysts, particulate filters, and selective catalytic reduction systems, as well as engineered components, including dosers; turbochargers, fuel systems, and valvetrain technologies; electronic control modules, sensors, and supporting software; and automated manual transmissions, and automatic transmissions for internal combustion engines. In addition, it sells and offers support services power generation systems, high-horsepower engines, and heavy-duty and medium-duty engines; offers application engineering services, custom-designed assemblies, and in-shop and field-based repair services; and retail and wholesale aftermarket parts. Further, the company offers standby and prime power generators, controls, paralleling systems, and transfer switches; turnkey solutions for distributed generation and energy management applications using natural gas, diesel, battery energy storage systems, and newer alternative sustainable fuels; diesel and natural gas high-speed, high-horsepower engines; and A/C generator/alternator products. Additionally, it provides electrified power systems, including batteries, fuel cells, and electric powertrain technologies. It sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.

Key Metrics

Price & Valuation

Current Price
$713.21
Market Cap
$98.42B
P/E Ratio
36.99
Forward P/E
21.02
PEG Ratio
1.65
Price to Book
7.97

Profitability

Profit Margin: 7.89%
Operating Margin: 9.76%
Gross Margin: 25.85%
Return on Equity (ROE): 21.99%
Return on Assets (ROA): 7.27%
Revenue Growth: 2.70%

Financial Health

Current Ratio: 1.71
Quick Ratio: 0.95
Debt to Equity: 61.62
Total Debt: $8.24B
Total Cash: $3.18B
Beta: 1.24

Trading & Analyst Info

52-Week Range

52-Week High: $737.76
52-Week Low: $325.00
50-Day Average: $673.21
200-Day Average: $552.13

Analyst Recommendations

Recommendation: BUY
Target Mean Price: $748.81
Target High: $875.00
Target Low: $520.00

Price graph

Price vs Rates, Inflation & Volume (long-term)

Dotted = market-implied expectation (next ~12 mo), not a prediction.

Quarterly Verdict

🟡 59/100

Hold / watch

Quality grade C; 3 improving / 3 weakening metrics YoY.

➕ Return on equity: ROE 22% — high returns on capital
➕ Leverage (net debt / EBITDA): Net debt / EBITDA 1.0x — low leverage
➕ Interest coverage: EBIT covers interest 12x — comfortably covered
➖ Earnings growth (net income YoY): Net income -28% YoY — earnings declining
➕ Cash conversion (CFO/NI): Operating cash ÷ net income 127% — earnings convert to cash
➖ Free cash flow margin: FCF margin 7% — thin / negative
➕ Revenue +2.7% YoY
➖ Net income -20.6% YoY
➖ Operating margin -0.4 pts YoY
➕ Free cash flow +172.7% YoY
➕ Cash +70.6% YoY
➖ Debt +2.6% YoY

Heuristic from the Quality Scorecard + quarter-over-quarter trends. Not financial advice.

Financial Statements

Income Statement (Annual)

Item2025-12-312024-12-312023-12-312022-12-312021-12-31
Tax Effect Of Unusual Items$-61.94M$219.52M$0.00$0.00N/A
Tax Rate For Calcs$0.25$0.17$0.21$0.23N/A
Normalized EBITDA$5.64B$5.05B$3.02B$3.80BN/A
Total Unusual Items$-244.00M$1.29B$2.00M$-159.00MN/A
Total Unusual Items Excluding Goodwill$-244.00M$1.29B$2.00M$-159.00MN/A
Net Income From Continuing Operation Net Minority Interest$2.84B$3.95B$735.00M$2.15BN/A
Reconciled Depreciation$1.10B$1.06B$1.02B$784.00MN/A
Reconciled Cost Of Revenue$24.18B$24.73B$25.82B$21.36BN/A
EBITDA$5.40B$6.34B$3.02B$3.80BN/A
EBIT$4.29B$5.27B$2.00B$3.02BN/A
Net Interest Income$-118.00M$-184.00M$-231.00M$-74.00MN/A
Interest Expense$329.00M$370.00M$375.00M$199.00MN/A
Interest Income$211.00M$186.00M$144.00M$125.00MN/A
Normalized Income$3.03B$2.88B$735.00M$2.15BN/A
Net Income From Continuing And Discontinued Operation$2.84B$3.95B$735.00M$2.15BN/A

Showing 15 of 60 rows

Balance Sheet (Annual)

Item2025-12-312024-12-312023-12-312022-12-312021-12-31
Treasury Shares Number$84.40M$85.10M$80.70M$81.20MN/A
Ordinary Shares Number$138.14M$137.40M$141.80M$141.30MN/A
Share Issued$222.54M$222.50M$222.50M$222.50MN/A
Net Debt$4.71B$5.39B$4.52B$5.75BN/A
Total Debt$8.11B$7.60B$7.21B$8.36BN/A
Tangible Book Value$7.96B$5.55B$3.83B$3.94BN/A
Invested Capital$19.90B$17.33B$15.55B$16.83BN/A
Working Capital$7.32B$3.52B$2.29B$3.03BN/A
Net Tangible Assets$7.96B$5.55B$3.83B$3.94BN/A
Capital Lease Obligations$562.00M$539.00M$512.00M$500.00MN/A
Common Stock Equity$12.35B$10.27B$8.85B$8.97BN/A
Total Capitalization$19.14B$15.05B$13.65B$13.47BN/A
Total Equity Gross Minority Interest$13.41B$11.31B$9.90B$10.22BN/A
Minority Interest$1.06B$1.04B$1.05B$1.25BN/A
Stockholders Equity$12.35B$10.27B$8.85B$8.97BN/A

Showing 15 of 86 rows

Cash Flow Statement (Annual)

Item2025-12-312024-12-312023-12-312022-12-312021-12-31
Free Cash Flow$2.39B$279.00M$2.75B$1.05BN/A
Repurchase Of Capital StockN/A$0.00$0.00$-374.00M$-1.40B
Repayment Of Debt$-975.00M$-1.57B$-1.14B$-1.55BN/A
Issuance Of Debt$2.33B$2.72B$861.00M$2.10BN/A
Issuance Of Capital StockN/AN/AN/AN/A$56.00M
Capital Expenditure$-1.24B$-1.21B$-1.21B$-916.00MN/A
End Cash Position$2.85B$1.67B$2.18B$2.10BN/A
Beginning Cash Position$1.67B$2.18B$2.10B$2.59BN/A
Effect Of Exchange Rate Changes$56.00M$-40.00M$-68.00M$50.00MN/A
Changes In Cash$1.12B$-468.00M$146.00M$-541.00MN/A
Financing Cash Flow$-772.00M$-173.00M$-2.18B$1.67BN/A
Cash Flow From Continuing Financing Activities$-772.00M$-173.00M$-2.18B$1.67BN/A
Net Other Financing Charges$-171.00M$-119.00M$-202.00M$84.00MN/A
Cash Dividends Paid$-1.05B$-969.00M$-921.00M$-855.00MN/A
Common Stock Dividend Paid$-1.05B$-969.00M$-921.00M$-855.00MN/A

Showing 15 of 60 rows

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