CUMMINS INC (CMI) Factsheet

CUMMINS INC (CMI) Stock Analysis

Analysis from 10-Q filed 2025-11-06. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 14.6%. FCF margin 7.9%. D/E 0.6x. Source: 10-Q filed 2025-11-06.

Metric Value Context
ROIC 14.6% Solid returns
FCF Margin 7.9% Healthy cash flow
Debt/Equity 0.6x Moderate leverage

ROIC 14.6% — Top 25% of sector peers. FCF margin 7.9% — Top 50%.

Explore CUMMINS INC: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for CMI: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.


Profitability: CUMMINS INC earns 14.6% ROIC, Top 25% in Industrials

ROIC TTM 14.6%, sector median 7.3%, Top 25%. DuPont: NOPAT margin 8.4% × asset turnover 1.0x. Gross margin 25.4%. Operating margin 11.3%. Source: 10-Q filed 2025-11-06.

Metric CMI Rating Context
Return on Invested Capital (ROIC) 14.6% Good Above sector median of 7.3%
Return on Equity (ROE) 22.3% Excellent Efficient use of shareholder equity
Gross Margin 25.4% Adequate Competitive pricing environment
Operating Margin 11.3% Good Moderate operational efficiency

Cash Flow: CUMMINS INC generates $2.7B FCF at 7.9% margin, positive NaN/8 quarters

FCF TTM $2.7B. FCF margin 7.9%, Top 50%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-06.

Metric CMI Rating Context
Free Cash Flow Margin 7.9% Adequate Healthy cash generation
Free Cash Flow (TTM) $2.7B Good Positive cash generation
OCF/Net Income 1.5x Excellent High earnings quality
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet: CUMMINS INC at 0.6x leverage

Debt/Equity 0.6x. Total debt $7.2B, cash & investments $3.2B. Source: 10-Q filed 2025-11-06.

Metric CMI Rating Context
Debt to Equity 0.6x Good Moderate leverage
Net Cash Position $-4.1B Warning Net debt position

Valuation: CUMMINS INC trades at 27.8x earnings

P/E 27.8x. EV/Sales 2.3x. FCF yield 3.6%. Dividend yield 1.5%. Source: 10-Q filed 2025-11-06.

Metric CMI Rating Context
P/E Ratio 27.8x Adequate Premium valuation
EV/Sales 2.3x Good Attractive revenue multiple
FCF Yield 3.6% Adequate Lower cash yield
Dividend Yield 1.5% Adequate Growth focus over income

Capital Allocation: CUMMINS INC returns 1.5% shareholder yield

Total shareholder yield 1.5% (div 1.5%). Capital returned $1.1B TTM. Source: 10-Q filed 2025-11-06.

Metric CMI Rating Context
Total Shareholder Yield 1.5% Adequate Dividend + buyback yield combined
Total Capital Returned (TTM) $1.1B Good Dividends + buybacks returned to shareholders

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) 14.6% Top 25% 2.0x above
Free Cash Flow Margin 7.9% Top 50% 1.7x above
Gross Margin 25.4% Bottom 50% 0.8x below
Operating Margin 11.3% Top 50% 1.5x above
Return on Equity (ROE) 22.3% Top 25% 2.5x above
P/E Ratio 27.8x N/A -

Financial Scorecard

Metric CMI Rating Sector Context
Return on Invested Capital (ROIC) 14.6% Good Top 25% of sector (median: 7.3%)
Free Cash Flow Margin 7.9% Adequate Top 50% of sector (median: 4.7%)
Gross Margin 25.4% Adequate Bottom 50% of sector (median: 33.1%)
Debt to Equity Ratio 58.6% Good Moderate leverage
P/E Ratio (Price-to-Earnings) 27.8x Adequate Growth premium
Free Cash Flow Yield 3.6% Adequate Moderate yield

Frequently Asked Questions

Q: What is CUMMINS INC's Return on Invested Capital (ROIC)?

CUMMINS INC (CMI) has a trailing twelve-month Return on Invested Capital (ROIC) of 14.6%. Sector median 7.3%. Source: 10-Q filed 2025-11-06.

Q: What is CUMMINS INC's Free Cash Flow Margin?

CUMMINS INC (CMI) has a free cash flow margin of 7.9%, generating $2.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-06.

Q: What is CUMMINS INC's P/E ratio and how does it compare to peers?

CUMMINS INC (CMI) trades at a P/E ratio of 27.8x, which is above the sector median of N/A. EV/Sales 2.3x. FCF yield 3.6%. Source: 10-Q filed 2025-11-06.

Q: Does CUMMINS INC pay a dividend?

CUMMINS INC (CMI) currently pays a dividend yield of 1.5%. Total shareholder yield (dividend + buybacks) 1.5%. Source: 10-Q filed 2025-11-06.

Q: How much debt does CUMMINS INC have?

CUMMINS INC (CMI) has a debt-to-equity ratio of 0.6x with total debt of $7.2 billion. Net debt $4.1 billion. Source: 10-Q filed 2025-11-06.

Q: What is CUMMINS INC's revenue and earnings growth?

CUMMINS INC (CMI) grew revenue by 0.1% year-over-year. EPS -4.2% YoY. Source: 10-Q filed 2025-11-06.

Q: How does CUMMINS INC compare to competitors in Industrials?

Compared to other companies in Industrials, CUMMINS INC (CMI) shows: ROIC 14.6%, sector median 7.3% (Top 25%). FCF margin 7.9%, sector median 4.7% (Top 50%). Gross margin 25.4%, 7.7pp below sector median. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.

Q: What warning signs should I watch for with CUMMINS INC?

Quantitative warning flags for CUMMINS INC (CMI): 1) ROIC declining -6.1% over 8 quarters. Source: 10-Q filed 2025-11-06.


Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.