# Cummins Inc. (CMI) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Machinery. Price $560.75, market value $77.2 billion.

## Valuation
- **P/E (trailing): 28.7×** (5-yr avg 21.9×, 3-yr avg 27.0×). Cummins Inc. trades at 28.7× trailing earnings, well above its own five-year average of 21.9×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 16.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.2×**. Each dollar of revenue is priced at 2.2×.
- **Price / book: 6.0×**. The shares trade at 6.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 14.9×**. Enterprise value is 14.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.4%** (5-yr avg 4.2%). Free cash flow equals 4.4% of the market value, in line with its five-year average of 4.2%.
- **Earnings yield: 3.5%**. The inverse of the P/E: 3.5% of the price is earned each year.

## Profitability
- **Gross margin: 25.3%**. Cummins Inc. keeps 25.3% of revenue after the direct cost of what it sells.
- **Operating margin: 11.2%**. 11.2% of revenue is left after running the business.
- **Net margin: 8.8%**. 8.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 23.9%**. 23.9% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 32.0%**. Return on all capital, debt included, is 32.0%: comfortably above what that capital costs.
- **Return on assets: 8.3%**. Each dollar of assets produces 8.3% of profit.

## Growth
- **Revenue growth (1 yr): -1.3%** (3-yr 6.2%/yr, 5-yr 11.2%/yr). Revenue fell 1.3% over the last year, against 11.2% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -27.7%** (3-yr 10.7%/yr, 5-yr 11.3%/yr). Earnings per share fell 27.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 31.6%/yr**. Free cash flow has compounded at 31.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.01**. Debt is 0.01 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Cummins Inc. holds more cash than debt.
- **Altman Z-score: 4.14**. A Z-score of 4.14 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.57%** ($8.00 per share, trailing). Cummins Inc. yields 1.57%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 36%** (33% of free cash flow). 36% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 22**. 22 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 7.7%/yr** (1-yr 9.1%). The dividend has grown 7.7% a year over five years.

## Analyst view
- **Analyst consensus: buy** (20 analysts). 20 analysts cover Cummins Inc.; the consensus is buy, with an average price target of $757.02 (+35% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 41.4%** (YTD 10.6%, 3-mo -13.9%). The shares are up 41.4% over twelve months including dividends.
- **From 52-week high: -24.0%** (43.7% above the low). Trading 24% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 34**. An RSI of 34 is neutral.
- **Beta (1 yr): 1.58** (volatility 37%). Beta of 1.58 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CMI · Page: https://foliofundamentals.com/stocks/cmi

Not investment advice.