A Business at a Glance
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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.
| 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 | 33.7B | 33.7B | 34.1B | 34.1B | 28.1B | 24.0B |
| Net Income | 2.8B | 2.8B | 3.9B | 735M | 2.2B | 2.1B |
| EPS | $20.50 | $20.50 | $28.37 | $5.15 | $15.12 | $14.61 |
| Free Cash Flow | 2.4B | 2.4B | 279M | 2.8B | 1.0B | 1.5B |
| ROIC | 17.8% | 19.6% | 21.2% | 8.4% | 16.1% | 23.9% |
| Gross Margin | 25.3% | 25.3% | 24.7% | 24.2% | 23.9% | 23.7% |
| Debt/Equity | 0.59 | 0.59 | 0.65 | 0.72 | 0.85 | 0.49 |
| Dividends/Share | $7.61 | $7.64 | $7.00 | $6.50 | $6.04 | $5.60 |
| Operating Income | 4.0B | 4.0B | 3.8B | 1.8B | 2.9B | 2.7B |
| Operating Margin | 12.0% | 12.0% | 11.0% | 5.2% | 10.4% | 11.3% |
| ROE | 23.0% | 25.1% | 38.4% | 8.3% | 24.0% | 26.2% |
| Shares Outstanding | 139M | 139M | 139M | 143M | 142M | 146M |
CUMMINS INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
CUMMINS INC trades at 30.2x 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 35.8x vs a median of 13.4x. The company's 5-year average ROIC is 17.8% 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 -9.7%.
CUMMINS INC (CMI) has a current P/E ratio of 30.2, 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 17.8%. This indicates strong capital allocation and a potential competitive advantage.
CUMMINS INC (CMI) has a market capitalization of $85.7B. It is classified as a large-cap stock.
Yes, CUMMINS INC (CMI) pays a dividend with a trailing twelve-month yield of 1.23%.
Based on historical P/E analysis, CUMMINS INC (CMI) appears expensive. The current P/E of 30.2 is 113% above its historical median of 14.1. The estimated fair value CAGR (P/E method) is 6.0%.
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 (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 0.59. 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.