Cummins Inc.
Rank #296ValueCMI · NYSE · Industrials
Cummins Inc. (CMI) — Rank #296 by gross profitability (GP/assets 0.24) · ROE 22.1% · Piotroski F-Score N/A.
As-of 2026-09-15 · CIK 0000026172 · all metrics point-in-time as of the filing date.
About
Cummins Inc. offers various power solutions worldwide.
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The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. It offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; and on- and off-highway, and other products. The company also provides aftertreatment technology and solutions comprising custom engineering systems and integrated controls, oxidation catalysts, particulate filters, and selective catalytic reduction systems, as well as engineered components, including dosers; turbochargers, fuel systems, and valvetrain technologies; electronic control modules, sensors, and supporting software; and automated manual transmissions, and automatic transmissions for internal combustion engines. In addition, it sells and offers support services power generation systems, high-horsepower engines, and heavy-duty and medium-duty engines; offers application engineering services, custom-designed assemblies, and in-shop and field-based repair services; and retail and wholesale aftermarket parts. Further, the company offers standby and prime power generators, controls, paralleling systems, and transfer switches; turnkey solutions for distributed generation and energy management applications using natural gas, diesel, battery energy storage systems, and newer alternative sustainable fuels; diesel and natural gas high-speed, high-horsepower engines; and A/C generator/alternator products. Additionally, it provides electrified power systems, including batteries, fuel cells, and electric powertrain technologies. It sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc.
was founded in 1919 and is headquartered in Columbus, Indiana.
- Industry
- Specialty Industrial Machinery
- Sector
- Industrials
- State
- IN
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- cummins.com
Price History
Company Snapshot
P/E and dividend yield are the primary valuation lenses for mature businesses.
Market Cap
$73.50B
P/E (annual)
26.0
P/S (annual)
2.2
P/B
5.7
P/OCF (annual)
20.3
Shareholder Yield
1.7%
Employees
67,400
Industry
Specialty Industrial Machinery
Exchange
NYSE
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
2/3 passGrowth
1/2 passTerry Smith quality gate
Passes 0/5 Terry Smith thresholdsWhat Growth Is Priced In
Implied revenue growth (10Y)
13.7%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Buyback tailwind: -0.3% — per-share value needs a total required return of 13.4% once share-count change is priced in.
vs. own 6-year median revenue growth: 8.5%
priced above its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
9.0%
r = 10% (base)
13.7%
r = 12%
17.7%
Net debt / market cap: -5.1%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Earnings bubble check
Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.
Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).
Profitability
Gross profitability (GP / assets)
0.24
Primary signal (Novy-Marx).
43rd pctl of 36 SIC 35 peers
Return on equity
22.1%
Gross margin
25.3%
3rd pctl of 36 SIC 35 peers
Revenue growth (YoY)
-1.3%
RPO growth (YoY)
16.7%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
6.2%
Revenue CAGR (5Y)
11.2%
Earnings CAGR (3Y)
—
FCF CAGR (3Y)
31.6%
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
1.56
14th pctl of 36 SIC 35 peers (best = lowest)
Current ratio
1.73×
31st pctl of 36 SIC 35 peers
Quick ratio
0.98×
Net cash
$3.77B
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$2.39B
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
-0.16
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
0.3%
Stock-based comp intensity.
Dividend safety
Composite score
4.2 / 5
Piotroski F-Score
F-Score
N/A
Only 8/9 components determinable.