(CMI) Cummins - Overview
Stock: Engines, Generators, Turbochargers, Transmissions, Electrification
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.99% |
| Yield on Cost 5y | 3.62% |
| Yield CAGR 5y | 8.08% |
| Payout Consistency | 77.0% |
| Payout Ratio | 37.2% |
| Risk 5d forecast | |
|---|---|
| Volatility | 63.0% |
| Relative Tail Risk | -6.38% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.44 |
| Alpha | 40.59 |
| Character TTM | |
|---|---|
| Beta | 1.266 |
| Beta Downside | 1.309 |
| Drawdowns 3y | |
|---|---|
| Max DD | 30.48% |
| CAGR/Max DD | 1.19 |
Description: CMI Cummins January 27, 2026
Cummins Inc. (NYSE:CMI) delivers a broad portfolio of power solutions through five operating segments-Engine, Distribution, Components, Power Systems, and Accelera-covering diesel and natural-gas engines, drivetrain components, after-treatment technologies, and emerging electrified systems such as batteries, fuel cells, and hydrogen production equipment. The company serves OEMs, distributors, dealers, and end-users with new equipment, aftermarket parts, and service offerings ranging from field repairs to turnkey distributed-generation projects.
Key recent metrics illustrate Cummins’ positioning in a transitioning energy landscape: • FY 2023 revenue reached $27.2 billion, up 5.1% YoY, driven by a 7% rise in the Engine segment and a 12% jump in Power Systems sales tied to increased demand for standby-power and natural-gas generators. • Adjusted EPS for FY 2023 was $7.32, reflecting a 4.8% margin expansion as the company leveraged higher-margin components and services. • The electrified-power segment (Accelera) grew 18% YoY in Q3 2024, supported by a 30% surge in hydrogen-fuel-cell orders and a 22% increase in battery-pack shipments, underscoring the shift toward low-carbon propulsion. • Macro drivers include robust freight volumes (U.S. truck-load index up 9% YoY), rising infrastructure spending on grid resilience, and tightening emissions regulations that boost demand for after-treatment and alternative-fuel solutions.
For a deeper quantitative dive into Cummins’ valuation assumptions, consult ValueRay’s detailed model on CMI.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 2.84b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 6.13 > 1.0 |
| NWC/Revenue: 21.73% < 20% (prev 10.32%; Δ 11.41% < -1%) |
| CFO/TA 0.11 > 3% & CFO 3.62b > Net Income 2.84b |
| Net Debt (4.39b) to EBITDA (5.38b): 0.82 < 3 |
| Current Ratio: 1.76 > 1.5 & < 3 |
| Outstanding Shares: last quarter (139.0m) vs 12m ago 0.43% < -2% |
| Gross Margin: 25.29% > 18% (prev 0.25%; Δ 2505 % > 0.5%) |
| Asset Turnover: 102.8% > 50% (prev 108.1%; Δ -5.36% > 0%) |
| Interest Coverage Ratio: 13.05 > 6 (EBITDA TTM 5.38b / Interest Expense TTM 329.0m) |
Altman Z'' 5.63
| A: 0.22 (Total Current Assets 16.93b - Total Current Liabilities 9.61b) / Total Assets 33.99b |
| B: 0.67 (Retained Earnings 22.62b / Total Assets 33.99b) |
| C: 0.13 (EBIT TTM 4.29b / Avg Total Assets 32.77b) |
| D: 1.12 (Book Value of Equity 23.01b / Total Liabilities 20.58b) |
| Altman-Z'' Score: 5.63 = AAA |
Beneish M -3.00
| DSRI: 1.14 (Receivables 5.82b/5.18b, Revenue 33.67b/34.10b) |
| GMI: 0.98 (GM 25.29% / 24.75%) |
| AQI: 0.95 (AQ_t 0.30 / AQ_t-1 0.31) |
| SGI: 0.99 (Revenue 33.67b / 34.10b) |
| TATA: -0.02 (NI 2.84b - CFO 3.62b) / TA 33.99b) |
| Beneish M-Score: -3.00 (Cap -4..+1) = A |
What is the price of CMI shares?
Over the past week, the price has changed by -2.92%, over one month by +6.10%, over three months by +19.80% and over the past year by +57.61%.
Is CMI a buy, sell or hold?
- StrongBuy: 5
- Buy: 3
- Hold: 15
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the CMI price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 560.6 | -3% |
| Analysts Target Price | 560.6 | -3% |
| ValueRay Target Price | 780.1 | 35% |
CMI Fundamental Data Overview February 07, 2026
P/E Forward = 23.9808
P/S = 2.2181
P/B = 6.9296
P/EG = 2.5096
Revenue TTM = 33.67b USD
EBIT TTM = 4.29b USD
EBITDA TTM = 5.38b USD
Long Term Debt = 6.82b USD (from longTermDebt, two quarters ago)
Short Term Debt = 447.0m USD (from shortTermDebt, last quarter)
Debt = 7.24b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.39b USD (from netDebt column, last quarter)
Enterprise Value = 78.31b USD (74.68b + Debt 7.24b - CCE 3.61b)
Interest Coverage Ratio = 13.05 (Ebit TTM 4.29b / Interest Expense TTM 329.0m)
EV/FCF = 32.82x (Enterprise Value 78.31b / FCF TTM 2.39b)
FCF Yield = 3.05% (FCF TTM 2.39b / Enterprise Value 78.31b)
FCF Margin = 7.09% (FCF TTM 2.39b / Revenue TTM 33.67b)
Net Margin = 8.44% (Net Income TTM 2.84b / Revenue TTM 33.67b)
Gross Margin = 25.29% ((Revenue TTM 33.67b - Cost of Revenue TTM 25.15b) / Revenue TTM)
Gross Margin QoQ = 22.86% (prev 25.60%)
Tobins Q-Ratio = 2.30 (Enterprise Value 78.31b / Total Assets 33.99b)
Interest Expense / Debt = 1.13% (Interest Expense 82.0m / Debt 7.24b)
Taxrate = 21.62% (171.0m / 791.0m)
NOPAT = 3.36b (EBIT 4.29b * (1 - 21.62%))
Current Ratio = 1.76 (Total Current Assets 16.93b / Total Current Liabilities 9.61b)
Debt / Equity = 0.59 (Debt 7.24b / totalStockholderEquity, last quarter 12.35b)
Debt / EBITDA = 0.82 (Net Debt 4.39b / EBITDA 5.38b)
Debt / FCF = 1.84 (Net Debt 4.39b / FCF TTM 2.39b)
Total Stockholder Equity = 11.78b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.68% (Net Income 2.84b / Total Assets 33.99b)
RoE = 24.13% (Net Income TTM 2.84b / Total Stockholder Equity 11.78b)
RoCE = 23.07% (EBIT 4.29b / Capital Employed (Equity 11.78b + L.T.Debt 6.82b))
RoIC = 17.40% (NOPAT 3.36b / Invested Capital 19.33b)
WACC = 9.72% (E(74.68b)/V(81.92b) * Re(10.58%) + D(7.24b)/V(81.92b) * Rd(1.13%) * (1-Tc(0.22)))
Discount Rate = 10.58% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.03%
[DCF Debug] Terminal Value 75.80% ; FCFF base≈1.54b ; Y1≈1.90b ; Y5≈3.20b
Fair Price DCF = 257.7 (EV 40.00b - Net Debt 4.39b = Equity 35.60b / Shares 138.1m; r=9.72% [WACC]; 5y FCF grow 24.44% → 2.90% )
EPS Correlation: 31.93 | EPS CAGR: 1.49% | SUE: -0.50 | # QB: 0
Revenue Correlation: 69.72 | Revenue CAGR: 8.05% | SUE: 1.40 | # QB: 3
EPS next Quarter (2026-03-31): EPS=5.42 | Chg30d=+0.109 | Revisions Net=+2 | Analysts=1
EPS current Year (2026-12-31): EPS=25.42 | Chg30d=-0.603 | Revisions Net=+1 | Growth EPS=+24.0% | Growth Revenue=+4.4%
EPS next Year (2027-12-31): EPS=30.79 | Chg30d=+0.097 | Revisions Net=+0 | Growth EPS=+21.1% | Growth Revenue=+8.6%