CMI Cummins Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
CMI appears undervalued on earnings and sales multiples relative to the Industrials sector, particularly against high-multiple peers like CTAS and EMR, though its growth profile does not fully justify the discount.
- Forward P/E of 20.54 is 36% below sector average of 32.09
- Price/Sales of 1.92 is well below sector median and peers like CTAS (41.49)
- Price/Book of 5.29 is high for an industrial firm with declining earnings
- Lack of EV/EBITDA and PEG data limits comprehensive valuation view
The forward trajectory is uncertain, with negative revenue and earnings growth contrasting with strong 6M (+39.8%) and 1Y (+29.8%) price performance, suggesting the market may be pricing in a turnaround not yet evident in fundamentals.
- Analyst target implies 7.7% upside, suggesting confidence in recovery
- Recent earnings beats indicate potential for stabilization
- Revenue and earnings both declining YoY and Q/Q
- No clear inflection in price momentum beyond short-term rebound
Cummins has delivered strong long-term shareholder returns and consistent profitability, though quarterly earnings have been erratic, with several large misses offset by outlier beats, indicating operational inconsistency amid macro swings.
- Consistent profitability with 12.13% operating margin and 7.95% net margin over time
- Strong long-term share performance: +125.6% over 5 years
- Earnings volatility evident, including -34.9% and -28.6% misses in recent quarters
- Q2 2024's +167.4% surprise was driven by non-recurring factors, distorting trend
Cummins maintains a healthier capital structure than most peers, with lower leverage and solid liquidity, though the sub-1.0 quick ratio warrants monitoring in a downturn.
- Debt/Equity of 0.63 is well below sector average of 1.26, reducing refinancing risk
- Current ratio of 1.77 indicates adequate short-term liquidity
- Quick ratio of 0.93 suggests inventory-heavy current assets may limit near-term flexibility
- Total cash and debt figures unavailable, limiting full solvency assessment
The dividend is well-covered and attractively yielding for the sector, with a low payout ratio enhancing durability, though lack of growth trend data limits full assessment of income reliability.
- 1.73% yield is above sector median and supported by a conservative 38.67% payout ratio
- Long-standing dividend policy with no recent cuts, indicating capital allocation discipline
- No data on 5-year yield average or dividend growth trend, limiting visibility into policy consistency
- Dividend sustainability could be pressured if earnings decline further
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for CMI and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
CMI
Cummins Inc.
Primary
|
+125.6% | +98.6% | +29.8% | +39.8% | +9.3% | -2.3% |
|
RSG
Republic Services, Inc.
Peer
|
+120.4% | +68.9% | +1.2% | -14.9% | -5.1% | +2.0% |
|
PWR
Quanta Services, Inc.
Peer
|
+524.9% | +199.4% | +32.7% | +24.6% | -1.8% | -3.5% |
|
NSC
Norfolk Southern Corporation
Peer
|
+29.1% | +21.3% | +20.1% | +6.1% | -1.3% | +1.2% |
|
PCAR
PACCAR Inc
Peer
|
+145.8% | +100.3% | +13.8% | +32.1% | +10.1% | +2.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Industrials Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
CMI
Cummins Inc.
|
NEUTRAL | $64.53B | 23.98 | 22.8% | 7.9% | $462.61 | |
|
RSG
Republic Services, Inc.
|
NEUTRAL | $64.95B | 31.17 | 18.2% | 12.8% | $209.8 | |
|
PWR
Quanta Services, Inc.
|
NEUTRAL | $64.02B | 63.69 | 13.4% | 3.7% | $429.3 | |
|
NSC
Norfolk Southern Corporation
|
NEUTRAL | $65.21B | 22.17 | 20.5% | 24.2% | $290.63 | |
|
PCAR
PACCAR Inc
|
NEUTRAL | $63.74B | 23.8 | 14.2% | 9.1% | $121.36 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-06 | SMITH MARK ANDREW | Chief Financial Officer | Option Exercise | 13,110 | $1,863,193 |
| 2025-11-06 | SMITH MARK ANDREW | Chief Financial Officer | Sale | 13,110 | $6,170,411 |
| 2025-10-30 | SMITH MARK ANDREW | Chief Financial Officer | Option Exercise | 200 | $28,424 |
| 2025-10-30 | SMITH MARK ANDREW | Chief Financial Officer | Sale | 200 | $89,819 |
| 2025-10-06 | SMITH MARK ANDREW | Chief Financial Officer | Option Exercise | 8,000 | $1,136,960 |
| 2025-10-06 | SMITH MARK ANDREW | Chief Financial Officer | Sale | 8,000 | $3,514,402 |
| 2025-09-17 | SMITH MARK ANDREW | Chief Financial Officer | Option Exercise | 9,080 | $1,483,944 |
| 2025-09-17 | SMITH MARK ANDREW | Chief Financial Officer | Sale | 9,080 | $3,774,789 |
| 2025-08-22 | ENRIGHT ROBERT | Officer | Option Exercise | 1,860 | $307,590 |
| 2025-08-22 | ENRIGHT ROBERT | Officer | Sale | 1,860 | $748,210 |
| 2025-08-19 | QUINTOS KAREN H. | Director | Sale | 1,307 | $529,761 |
| 2025-08-14 | DAVIS AMY ROCHELLE | Officer | Option Exercise | 1,985 | $310,688 |
| 2025-08-14 | DAVIS AMY ROCHELLE | Officer | Sale | 5,002 | $2,015,215 |
| 2025-08-13 | SMITH MARK ANDREW | Chief Financial Officer | Option Exercise | 12,500 | $2,042,875 |
| 2025-08-13 | SMITH MARK ANDREW | Chief Financial Officer | Sale | 12,500 | $5,002,500 |
Wall Street Analysts
Professional analyst ratings and price targets
Past News Coverage
Recent headlines mentioning CMI from our newsroom.