Cummins (CMI) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Cummins

NYSE•Industrials•Specialty Industrial Machinery

$523.88-3.62(-0.01%)After hours

Market Cap

$73.18B

P/E

27.0x

P/S

2.1x

P/B

5.7x

Cummins Inc. offers various power solutions worldwide. 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.

How this company scores

GoodMetricSide Score: 63/100

Strongest: Cash & Earnings Quality (22/25); weakest: Growth (10/25).

Profitability17/25

Growth10/25

Balance Sheet & Red Flags14/25

Cash & Earnings Quality22/25

Strengths

Rising free cash flowHigh ROEImproving margins

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 27.0x5y range 11.6x – 46.2x

Currently above its 20-quarter median.

P/S · 2.1x5y range 1.0x – 2.1x

Currently above its 20-quarter median.

P/B · 5.7x5y range 3.0x – 5.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 9.3% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $73.18B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $34.71B
Q. Revenue: $9.46B
TTM EBITDA: $5.01B
TTM Op. Income: $3.89B
Q. Op. Income: $1.28B
TTM Net Income: $2.71B
Q. Net Income: $932.00M
EPS: $6.76
Shares Out.: $137.90M

$34.71B in TTM revenue grew 2.9% YoY, reaching $9.46B last quarter. TTM EBITDA of $5.01B and TTM operating income of $3.89B show growth is flowing through to the bottom line. TTM net income of $2.71B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 3 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 26.1%
EBITDA Margin: 16.5%
Op. Margin: 13.5%
Net Margin: 9.9%

Op. margin of 13.5% is down 0.7% YoY — costs are rising relative to revenue. Net margin at 9.9% and gross margin of 26.1% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 27.0x
P/S Ratio: 2.1x
P/B Ratio: 5.7x

At 27.0x P/E, the stock trades within typical market levels. P/S of 2.1x and P/B of 5.7x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 4 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $35.63B
Cash: $3.18B
Long-Term Debt: $6.74B
Book Value: $12.85B
D/E Ratio: 0.5
Debt/EBITDA: 4.3

With $35.63B in assets and $6.74B in long-term debt, D/E is 0.5and book value is $12.85B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 4 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $1.50B
TTM Free Cash Flow: $3.37B
FCF Margin: 9.7%
FCF / Net Income: 1.2

TTM FCF of $3.37B on $1.50B in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 5 consecutive quarters — an improving trend.