A Business at a Glance
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CUMMINS INC
CMI
$92.2B
Mkt Cap
$664.65
-0.06%
CUMMINS INC (CMI) has a current P/E ratio of 32.4, compared to its historical median P/E of 14.1. The stock is currently considered Expensive based on its historical valuation range.
CUMMINS INC (CMI) has a 5-year average return on invested capital (ROIC) of 18.6%. This indicates strong capital allocation and a potential competitive advantage.
CUMMINS INC (CMI) has a market capitalization of $91.7B. It is classified as a large-cap stock.
Yes, CUMMINS INC (CMI) pays a dividend with a trailing twelve-month yield of 1.18%.
Based on historical P/E analysis, CUMMINS INC (CMI) appears expensive. The current P/E of 32.4 is 129% above its historical median of 14.1. The estimated fair value CAGR (P/E method) is 5.2%.
CUMMINS INC (CMI) operates in the Engines & Turbines industry, within the Industrials sector.
CUMMINS INC (CMI) reported annual revenue of $33.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Cummins Inc., founded in 1919, is a global power leader offering a diversified portfolio of advanced diesel, electric, and hybrid powertrains; integrated power generation systems; critical components including aftertreatment, turbochargers, fuel systems, controls, transmissions, axles, and brakes; and zero-emissions technologies through five reportable segments: Engine, Components, Distribution, Power Systems, and Accelera. The company operates a capital-intensive manufacturing and distribution model, earning revenue through original equipment manufacturers (OEMs), distributors, dealers, and end customers across approximately 190 countries and territories via a service network of roughly 640 wholly-owned, joint venture, and independent distributor locations and more than 13,000 certified dealer locations. The Engine segment manufactures diesel, natural gas, and gasoline engines ranging from 2.8 to 15 liters and 48 to 715 horsepower for heavy-duty trucks, medium-duty trucks and buses, light-duty automotive, and off-highway markets, competing primarily on performance, price, total cost of ownership, fuel economy, emissions compliance, delivery speed, quality, and customer support. The Components segment designs and manufactures drivetrain and braking systems, aftertreatment solutions, turbochargers, fuel systems, valvetrain technologies, automated transmissions, and electronic controls for commercial and industrial applications. The Distribution segment operates as the primary sales, service, and support channel through seven geographic regions (North America, Europe, Asia Pacific, China, India, Latin America, and Africa and Middle East), providing power generation systems, engines, aftermarket parts, and repair services. The Power Systems segment manufactures standby and prime power generators from 2 kilowatts to 3.5 megawatts, high-speed high-horsepower engines up to 4,400 horsepower for mining, oil and gas, marine, rail, and defense applications, and generator technologies under the Stamford and AVK brands. Accelera focuses on zero-emissions technologies including battery and electric powertrain systems, with the company pursuing its Destination Zero strategy to support customers through the energy transition.
【Strong demand recovery ahead】 Management expects 2026 to deliver improved momentum across multiple end markets, with total company revenues projected to increase 8%-11% driven by stronger North America heavy and medium-duty truck demand, particularly in the first half, combined with accelerating global power generation growth supported by data center capacity additions and international expansion. The company anticipates EBITDA margins to expand to 17.75%-18.5% as higher volumes in engines, components, and distribution offset modest tariff headwinds that are expected to remain immaterial on a net basis through the remainder of 2026. Power Systems is positioned for particularly strong performance with revenues expected to grow 14%-19% and EBITDA margins around 25%-26%, reflecting robust data center demand and successful capacity expansion completed in 2025. The Accelera segment is expected to show improved financial performance following the sale of the low-pressure fuel cell business, with net losses narrowing to $270-$300 million as the company continues to streamline operations and focus on product lines with stronger long-term prospects.
No forward guidance provided.
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
On-highway (EBU market) | $6.33B | $7.11B | $7.76B | $8.01B | $7.02B | 17% |
Power Generation (DBU product line) | $1.75B | $1.77B | $2.50B | $3.96B | $4.93B | 12% |
Parts (DBU product line) | $3.14B | $3.81B | $4.05B | $3.97B | $4.07B | 10% |
Drivetrain and braking systems [CBU business] | — | $1.88B | $4.82B | $4.73B | $3.98B | 10% |
Emission solutions (CBU business) | $3.14B | $3.09B | $3.42B | $3.18B | $3.03B | 8% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 33.9B | 33.7B | 34.1B | 34.1B | 28.1B | 24.0B |
| Net Income | 2.7B | 2.8B | 3.9B | 735M | 2.2B | 2.1B |
| EPS | $17.75 | $20.50 | $28.37 | $5.15 | $15.12 | $14.61 |
| Free Cash Flow | 2.7B | 2.4B | 279M | 2.8B | 1.0B | 1.5B |
| ROIC | 17.1% | 19.2% | 22.4% | 7.8% | 19.3% | 24.2% |
| Gross Margin | 25.4% | 25.3% | 24.7% | 24.2% | 23.9% | 23.7% |
| Debt/Equity | 0.59 | 0.63 | 0.71 | 0.78 | 0.91 | 0.54 |
| Dividends/Share | $7.83 | $7.64 | $7.00 | $6.50 | $6.04 | $5.60 |
| Operating Income | 3.8B | 4.0B | 3.8B | 1.8B | 2.9B | 2.7B |
| Operating Margin | 11.3% | 12.0% | 11.0% | 5.2% | 10.4% | 11.3% |
| ROE | 21.6% | 25.1% | 41.3% | 8.2% | 25.1% | 26.3% |
| Shares Outstanding | 138M | 139M | 139M | 143M | 142M | 146M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 19.2B | 19.1B | 17.5B | 20.4B | 23.8B | 23.6B | 19.8B | 24.0B | 28.1B | 34.1B | 34.1B | 33.7B | 33.9B |
| Gross Margin | 25.3% | 25.9% | 25.5% | 25.0% | 24.1% | 25.4% | 24.7% | 23.7% | 23.9% | 24.2% | 24.7% | 25.3% | 25.4% |
| R&D | 754M | 735M | 637M | 754M | 902M | 1.0B | 906M | 1.1B | 1.3B | 1.5B | 1.5B | 1.4B | 1.4B |
| SG&A | 2.1B | 2.1B | 2.1B | 2.4B | 2.4B | 2.5B | 2.1B | 2.4B | 2.7B | 3.3B | 3.3B | 3.1B | 3.2B |
| EBIT | 2.4B | 2.1B | 1.9B | 2.3B | 2.8B | 2.7B | 2.3B | 2.7B | 2.9B | 1.8B | 3.8B | 4.0B | 3.8B |
| Op. Margin | 12.3% | 10.8% | 10.7% | 11.4% | 11.7% | 11.5% | 11.5% | 11.3% | 10.4% | 5.2% | 11.0% | 12.0% | 11.3% |
| Net Income | 1.7B | 1.4B | 1.4B | 999M | 2.1B | 2.3B | 1.8B | 2.1B | 2.2B | 735M | 3.9B | 2.8B | 2.7B |
| Net Margin | 8.6% | 7.3% | 8.0% | 4.9% | 9.0% | 9.6% | 9.0% | 8.9% | 7.7% | 2.2% | 11.6% | 8.4% | 7.9% |
| Non-Recurring | 0 | 301M | 59M | 0 | 0 | 115M | 110M | 1.0M | 39M | 0 | 1.9B | 655M | 655M |
| Returns on Capital | |||||||||||||
| ROIC | 40.0% | 29.1% | 24.2% | 20.3% | 27.9% | 25.3% | 20.7% | 24.2% | 19.3% | 7.8% | 22.4% | 19.2% | 17.1% |
| ROE | 21.6% | 18.5% | 19.5% | 14.1% | 29.3% | 30.4% | 23.0% | 26.3% | 25.1% | 8.2% | 41.3% | 25.1% | 21.6% |
| ROA | 10.8% | 9.1% | 9.2% | 6.0% | 11.5% | 11.6% | 8.4% | 9.2% | 8.0% | 2.4% | 12.4% | 8.7% | 7.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 2.3B | 2.1B | 1.9B | 2.3B | 2.4B | 3.2B | 2.7B | 2.3B | 2.0B | 4.0B | 1.5B | 3.6B | 3.9B |
| Free Cash Flow | 1.5B | 1.3B | 1.4B | 1.8B | 1.7B | 2.5B | 2.2B | 1.5B | 1.0B | 2.8B | 279M | 2.4B | 2.7B |
| Owner Earnings | 1.8B | 1.5B | 1.4B | 1.7B | 1.7B | 2.5B | 2.0B | 1.6B | 1.1B | 2.9B | 289M | 2.4B | 2.8B |
| CapEx | 743M | 744M | 531M | 506M | 709M | 700M | 528M | 734M | 916M | 1.2B | 1.2B | 1.2B | 1.3B |
| Maint. CapEx | 455M | 514M | 530M | 583M | 611M | 672M | 673M | 662M | 784M | 1.0B | 1.1B | 1.1B | 1.1B |
| Growth CapEx | 288M | 230M | 1.0M | 0 | 98M | 28M | 0 | 72M | 132M | 189M | 143M | 130M | 144M |
| D&A | 455M | 514M | 530M | 583M | 611M | 672M | 673M | 662M | 784M | 1.0B | 1.1B | 1.1B | 1.1B |
| CapEx/OCF | 32.8% | 36.1% | 27.4% | 22.2% | 29.8% | 22.0% | 19.4% | 32.5% | 46.7% | 30.6% | 81.2% | 34.1% | 32.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 512M | 622M | 676M | 701M | 718M | 761M | 782M | 809M | 855M | 921M | 969M | 1.1B | 1.1B |
| Dividend Yield | 2.7% | 3.7% | 4.4% | 3.3% | 3.6% | 3.6% | 3.3% | 2.6% | 3.0% | 2.9% | 2.4% | 2.0% | 1.2% |
| Share Buybacks | 670M | 900M | 778M | 451M | 1.1B | 1.3B | 641M | 1.4B | 374M | 0 | 0 | 0 | 0 |
| Buyback Yield | 3.4% | 7.4% | 4.3% | 1.9% | 6.4% | 5.3% | 2.2% | 4.9% | 1.2% | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 36M | 24M | 32M | 41M | 53M | 49M | 31M | 37M | 80M | 48M | 133M | 69M | 61M |
| Debt Repayment | 94M | 76M | 163M | 60M | 62M | 96M | 73M | 73M | 1.6B | 1.1B | 1.6B | 975M | 975M |
| Balance Sheet | |||||||||||||
| Net Debt | -3.0B | -1.9B | -685M | 382M | 897M | 1.3B | 586M | 1.2B | 5.6B | 4.2B | 5.0B | 4.2B | 4.1B |
| Cash & Equiv. | 2.3B | 1.7B | 1.1B | 1.4B | 1.3B | 1.1B | 3.4B | 2.6B | 2.1B | 2.2B | 1.7B | 2.8B | 3.2B |
| Long-Term Debt | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B | 3.6B | 3.6B | 4.5B | 4.8B | 4.8B | 6.8B | 6.7B |
| Debt/Equity | 0.22 | 0.22 | 0.26 | 0.27 | 0.33 | 0.37 | 0.55 | 0.54 | 0.91 | 0.78 | 0.71 | 0.63 | 0.59 |
| Interest Coverage | 37.0 | 31.6 | 27.2 | 28.8 | 24.4 | 24.8 | 22.7 | 24.4 | 14.7 | 4.7 | 10.1 | 12.2 | 11.7 |
| Equity | 7.7B | 7.4B | 6.9B | 7.3B | 7.3B | 7.5B | 8.1B | 8.1B | 9.0B | 8.8B | 10.3B | 12.3B | 12.4B |
| Total Assets | 15.8B | 15.1B | 15.0B | 18.1B | 19.1B | 19.7B | 22.6B | 23.7B | 30.3B | 32.0B | 31.5B | 34.0B | 34.4B |
| Total Liabilities | 7.7B | 7.4B | 7.8B | 9.9B | 10.8B | 11.3B | 13.6B | 14.3B | 20.1B | 22.1B | 20.2B | 20.6B | 21.1B |
| Intangibles | 343M | 328M | 332M | 973M | 909M | 1.0B | 963M | 900M | 2.7B | 2.5B | 2.4B | 2.2B | 2.2B |
| Retained Earnings | 9.5B | 10.3B | 11.0B | 11.5B | 12.9B | 14.4B | 15.4B | 16.7B | 18.0B | 17.9B | 20.8B | 22.6B | 23.0B |
| Working Capital | 5.0B | 4.1B | 3.4B | 3.3B | 3.4B | 3.1B | 5.6B | 5.2B | 3.0B | 2.3B | 3.5B | 7.3B | 7.2B |
| Current Assets | 9.1B | 7.9B | 7.7B | 8.9B | 9.8B | 9.4B | 11.9B | 12.3B | 14.5B | 15.2B | 14.8B | 16.9B | 17.4B |
| Current Liabilities | 4.0B | 3.8B | 4.3B | 5.7B | 6.4B | 6.3B | 6.3B | 7.1B | 11.4B | 12.9B | 11.2B | 9.6B | 10.2B |
| Per Share Data | |||||||||||||
| EPS | 9.02 | 7.84 | 8.23 | 5.97 | 13.15 | 14.48 | 12.01 | 14.61 | 15.12 | 5.15 | 28.37 | 20.50 | 17.75 |
| Owner EPS | 9.70 | 8.56 | 8.13 | 9.88 | 10.53 | 15.76 | 13.55 | 10.67 | 7.72 | 20.28 | 2.08 | 17.64 | 19.96 |
| Book Value | 42.34 | 41.50 | 40.59 | 43.38 | 45.13 | 48.10 | 54.12 | 55.85 | 63.09 | 62.01 | 73.84 | 89.04 | 89.51 |
| Cash Flow/Share | 12.38 | 11.57 | 11.45 | 13.61 | 14.61 | 20.38 | 18.27 | 15.47 | 13.79 | 27.79 | 10.69 | 26.11 | 27.47 |
| Dividends/Share | 2.80 | 3.49 | 3.99 | 4.21 | 4.44 | 4.90 | 5.28 | 5.60 | 6.04 | 6.50 | 7.00 | 7.64 | 7.83 |
| Shares Out. | 183.0M | 178.4M | 169.4M | 167.3M | 162.8M | 156.1M | 149.0M | 145.9M | 142.3M | 142.7M | 139.1M | 138.7M | 138.0M |
| Valuation | |||||||||||||
| P/E Ratio | 12.0 | 8.7 | 13.0 | 24.0 | 8.3 | 10.7 | 16.5 | 13.5 | 14.8 | 44.6 | 12.1 | 25.2 | 37.5 |
| P/FCF | 13.0 | 9.2 | 12.9 | 13.5 | 10.7 | 9.8 | 13.4 | 18.8 | 30.5 | 11.9 | 171.1 | 30.1 | 34.3 |
| EV/EBIT | 7.1 | 5.0 | 9.1 | 10.4 | 6.7 | 9.3 | 13.0 | 10.9 | 12.6 | 20.7 | 13.9 | 18.7 | 24.9 |
| Price/Book | 2.6 | 1.6 | 2.6 | 3.3 | 2.4 | 3.2 | 3.7 | 3.5 | 3.5 | 3.7 | 4.6 | 5.8 | 7.4 |
| Price/Sales | 1.0 | 0.9 | 0.9 | 1.0 | 0.8 | 0.9 | 1.2 | 1.3 | 1.0 | 0.9 | 1.2 | 1.5 | 2.7 |
| FCF Yield | 7.7% | 10.9% | 7.7% | 7.4% | 9.4% | 10.2% | 7.4% | 5.3% | 3.3% | 8.4% | 0.6% | 3.3% | 2.9% |
| Market Cap | 19.8B | 12.1B | 18.2B | 24.0B | 17.8B | 24.2B | 29.5B | 28.7B | 31.9B | 32.8B | 47.7B | 71.8B | 91.7B |
| Avg. Price | 105.28 | 94.09 | 89.90 | 126.62 | 123.67 | 137.12 | 161.03 | 215.73 | 198.32 | 220.85 | 287.70 | 372.52 | 664.65 |
| Year-End Price | 108.29 | 67.90 | 107.40 | 143.23 | 109.63 | 155.10 | 197.84 | 196.54 | 223.93 | 229.68 | 343.11 | 517.38 | 664.65 |
CUMMINS INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
CUMMINS INC trades at 32.4x trailing earnings, compared to its 15-year median P/E of 14.1x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 38.5x vs a median of 13.4x. The company's 5-year average ROIC is 18.6% with a gross margin of 24.4%. Total shareholder yield (dividends) is 1.2%. At current prices, the estimated annualized return to fair value is -10.4%.
CUMMINS INC (CMI) has a net profit margin of 8.4%. This is a modest margin.
CUMMINS INC (CMI) generated $2.4 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CUMMINS INC (CMI) has a debt-to-equity ratio of 0.63. This indicates moderate leverage.
CUMMINS INC (CMI) reported earnings per share (EPS) of $20.50 in its most recent fiscal year.
CUMMINS INC (CMI) has a return on equity (ROE) of 25.1%. This indicates the company generates strong returns for shareholders.
CUMMINS INC (CMI) has a 5-year average gross margin of 24.4%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for CUMMINS INC (CMI), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CUMMINS INC (CMI) has a book value per share of $89.04, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects 2026 to deliver improved momentum across multiple end markets, with total company revenues projected to increase 8%-11% driven by stronger North America heavy and medium-duty truck demand, particularly in the first half, combined with accelerating global power generation growth supported by data center capacity additions and international expansion. The company anticipates EBITDA margins to expand to 17.75%-18.5% as higher volumes in engines, components, and distribution offset modest tariff headwinds that are expected to remain immaterial on a net basis through the remainder of 2026. Power Systems is positioned for particularly strong performance with revenues expected to grow 14%-19% and EBITDA margins around 25%-26%, reflecting robust data center demand and successful capacity expansion completed in 2025. The Accelera segment is expected to show improved financial performance following the sale of the low-pressure fuel cell business, with net losses narrowing to $270-$300 million as the company continues to streamline operations and focus on product lines with stronger long-term prospects.