Stock Analysis
Cummins Inc.CMI
P/E 26.94×· 5Y range 10.97–37.78×· top 14% of history
Sector: Industrials · Industry: Engines & Turbines
AnalystsBuy28 analystsP/E 26.9× sits at the 86th percentile of its 5.089664613278576-year history.
Cash covers 47% of debt · Q2 2026.
PMP Verdict
High quality, but expensive
Strengths
- Quality90
- Financial Health80
Risks
- Valuation44
Excellent business. Weak entry price.
Bull Case
- ✓Altman Z 3.9 — safe-zone balance sheet
- ✓ROE 19.5% — efficient capital deployment
- ✓Interest coverage 12.2× — debt well covered
What's happening with CMI
Profile
Strong earnings quality and financial health; valuation lags behind.
How is each axis scored?
- Valuation44/100 · Weak
- P/E vs own history (86th pct)0/25
- FCF yield (4.6%)12/25
- P/S (2.1x)20/25
- EV/EBIT (19.9x)12/25
- Growth61/100 · Moderate
- Revenue CAGR (8.8%)12/25
- Net income CAGR (7.5%)12/25
- EPS CAGR 5Y (8.8%)12/25
- Fwd implied growth (69.7%)25/25
- Profitability65/100 · Moderate
- ROIC (16.8%)20/25
- ROE (19.5%)20/25
- Net margin (7.8%)13/25
- Operating margin (11.2%)12/25
- Financial Health80/100 · Strong
- Altman Z (3.93)25/25
- Current ratio (1.73)18/25
- Interest coverage (12.2x)25/25
- Net cash / debt (D/A 12%)12/25
- Quality90/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.53)25/25
- FCF conversion (124%)25/25
- Margin stability (σ 1.9%)25/25
- Moat68/100 · Moderate
- ROIC >12% years (9/10 yrs)25/25
- Median gross margin (24.7%)6/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 2.2%)12/25
Risk Flags
- ⚠P/E 26.9× at top 14% of 5-year history
About Cummins Inc.
Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. Show more
The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of the world. Much of Cummins' foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins' business model is unique as it competes with many of its heavy-duty truck manufacturer customers, which also make their own engines.
Headquarters: COLUMBUS, IN · Employees: 67,400 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
44D+P/E (TTM)26.9xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 11.0x–37.8x · 86th pct
P/FCF21.2xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield4.6%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 0.0%–8.4% · 70th pct
P/S (TTM)2.10xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 0.9x–3.0x · 85th pct
EV/EBIT19.9xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 9.1x–31.9x · 66th pct
EV/Sales2.2xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E15.8xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio5.25xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.79B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield1.55%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio40.7%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
65BROIC16.8%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE19.5%C
Grade C: AverageReturn on Equity. Neg. equity = heavy buybacks
ROA7.9%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin7.8%C
Grade C: AverageNet Income / Revenue
Operating Margin11.2%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin25.3%D
Grade D: LowGross Profit / Revenue
FCF Margin9.7%C
Grade C: AverageFCF / Revenue
True FCF Margin9.7%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
61BRevenue CAGR8.8%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR7.5%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)8.8%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth69.7%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-6.6%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue—
TTM stock-based comp / TTM Revenue
Financial Health
80AAltman Z-Score3.93A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.73xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio0.98xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage12.2xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment1.3yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT1.1xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.60xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.47xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
90A+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.53A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion124.0%A
Grade A: StrongFCF / Net Income
Margin Stability1.9%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue3.7%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover1.01xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Newsome Earl Filed | Newsome Earl | SellOpen market sale | -698 | |
Merritt Brett Michael Filed | Merritt Brett Michael | Gift | -218 | |
JACKSON DONALD G Filed | JACKSON DONALD G | SellOpen market sale | -480 | |
JACKSON DONALD G Filed | JACKSON DONALD G | SellOpen market sale | -160 | |
JACKSON DONALD G Filed | JACKSON DONALD G | SellOpen market sale | -90 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Fetch Bonnie J Filed | Fetch Bonnie J | Gift | -155 | |
Stoner Nathan R Filed | Stoner Nathan R | Gift | -600 | |
Belske Gary L Filed | Belske Gary L | Grant / award | +306 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
68BROIC >12% Years9/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)24.7%D
Grade D: WeakMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor2.2%C
Grade C: ModerateWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$19.72
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$28.52
Cash & short-term investments per share (Finnhub)
Book Value / Share$93.36
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$8.29B
Total debt obligations (short + long term)
Cash & Equiv.$3.92B
Cash and short-term investments
Net Debt$4.36B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$13.91B
Shareholders' equity (book value)
Asset / Liability1.64xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$72.96B
Current Market Capitalization
Beta1.23C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Cummins Inc. (CMI)
Piotroski F-Score of 6/9 indicates mixed fundamentals for Cummins Inc.. Altman Z-Score of 3.93 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk.
- Beneish M-Score of -2.53 suggests a low likelihood of earnings manipulation.
- Takes ~1.3 years to repay net debt from free cash flow.
See how CMI ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all CMI moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 7 | Regular | 516.79 | -3.46% | -2.47 |
| Oct 7 | After-hours | 516.70 | -3.48% | -2.48 |
| Oct 6 | After-hours | 537.56 | +2.71% | 2.45 |
| Oct 2 | Pre-market | 529.94 | +2.50% | 2.10 |
| Oct 2 | Regular | 529.79 | +2.47% | 2.08 |
Frequently Asked Questions about CMI
What is the current Cummins Inc. (CMI) stock price?
CMI is trading at $531.33 at the last market close, down 0.26% on the session. PreMarketPrice tracks CMI pre-market, intraday and after-hours prices.
Is CMI stock a buy right now?
PreMarketPrice's quantitative model rates Cummins Inc.'s financial health at 80/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is CMI stock overvalued?
Cummins Inc. trades at a trailing P/E of 26.9 and our valuation score rates it 44/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Cummins Inc. report earnings?
No confirmed earnings date is currently scheduled for CMI. The Earnings section lists recent reports and updates as dates are announced.
What sector does Cummins Inc. operate in?
Cummins Inc. operates in the Industrials sector, within the Engines & Turbines industry. The Related Stocks section lists sector peers for comparison.
What does Cummins Inc. do?
Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators.
About Cummins Inc. (CMI) Stock
Cummins Inc. (CMI) is a US-listed stock operating in the Industrials sector, specifically the Engines & Turbines industry. As of the latest update, Cummins Inc. is trading at $531.33, down 0.26% on the day with a market capitalization of $73.0 billion. The financial health score for CMI is 80/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for CMI stock.
CMI Stock Analysis & Key Metrics
On PreMarketPrice, you can track Cummins Inc. (CMI) across multiple dimensions:
- Pre-market price & movement: Real-time CMI stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for CMI with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Cummins Inc. across multiple reporting periods.
- Financial health score: A composite score of 80/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for CMI.
- Sector peers: Compare CMI against 5 other industrials stocks on key financial metrics.
Is CMI a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Cummins Inc. (CMI) as an investment. The financial health score of 80/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Cummins Inc. (CMI) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.