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.