CMI
Cummins
$724.93
▲ 1.1%Updated Today 7:15 PM ET
▲ Up 127.6% over the last 12 months
Market Cap
$98.92B
P/E
36.68x
Forward P/E (est.)
38.28x
ROE
22.0%
Revenue Growth
0.1%
EPS Growth
-4.2%
Profit Margin
7.9%
FCF Yield
3.9%
Debt / Equity
0.61x
ROIC
23.0%
Interest Coverage
12.23x
Current Ratio
1.71x
Dividend Yield
1.2%
Implied Growth (rev. DCF)
6.4%
Rating Score
41/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what CMI's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. CMI trades near $724.93, above its 50-day average ($659.77) and 200-day average ($541.36). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 60 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. CMI's is $27.15 (~3.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month CMI found buyers near $628.09 (support) and sellers near $733.48 (resistance); its 52-week range is $307.90–$733.48. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.8× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Cummins (CMI) is a large-cap company in the Construction Machinery & Heavy Transportation Equipment industry, part of the Industrials sector of the S&P 500, with a market value around $98.92B.
In its latest reported year it generated about $33.67B in revenue.
Our model rates CMI Weak (41/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
8.8%
Revenue moved from $24.02B in 2021 to $33.67B in 2025, a 8.8% compound annual growth rate. The most recent year was roughly flat (0.1%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
25.3%
Operating Margin
12.0%
Net Margin
7.9%
ROE
22.0%
Cummins keeps about 7.9% of each sales dollar as net profit, with a 25.3% gross margin and 12.0% operating margin. Return on equity is 22.0% and return on invested capital about 23.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$1.52B
Net Debt
-$1.10B
Net cash position
Net Debt / EBITDA
-0.27x
Debt / Equity
0.61x
Leverage: debt-to-equity is 0.6x, and operating profit covers interest about 12.2x, with a current ratio of 1.7x. That is a moderate, manageable debt load for most businesses. It carries roughly $1.52B of total debt against $2.61B of cash.
Operating CF
$3.62B
Free Cash Flow
$2.39B
FCF Margin
7.1%
In the latest year Cummins produced about $3.62B of operating cash flow and $2.39B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.9% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
36.68x
P/S
2.84x
P/B
5.84x
EV / EBITDA
18.61x
CMI trades at 36.7x trailing earnings (about 38.3x on estimated forward earnings), 2.8x sales, and 5.8x book value. Reverse-engineering today's price implies the market expects roughly 6.4% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How CMI stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (80 S&P 500 companies), CMI ranks #65 of 80 by our overall rating. It trades at a premium versus the sector on earnings (36.7x P/E vs. 30x median) with a lower return on equity (22.0% vs. 24.7%) and slower revenue growth (0.1% vs. 5.0%).
P/E vs sector
36.7x
median 30x
ROE vs sector
22.0%
median 24.7%
Growth vs sector
0.1%
median 5.0%
Sector rank
#65
of 80 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$497.85 – $837.29
vs. $724.93 today · expected CAGR -7% – 3%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $34.68B | $35.72B | $36.79B | $37.90B | $39.03B |
| Net income | $2.77B | $2.86B | $2.94B | $3.03B | $3.12B |
| EPS | $20.11 | $20.71 | $21.33 | $21.97 | $22.63 |
| Share price (low) | $442.33 | $455.60 | $469.27 | $483.35 | $497.85 |
| Share price (high) | $743.92 | $766.24 | $789.23 | $812.90 | $837.29 |
| CAGR (low–high) | -39% / 3% | -21% / 3% | -13% / 3% | -10% / 3% | -7% / 3% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for CMI:
- Strong return on equity (22.0%) shows capital is put to work well.
- As an established S&P 500 member in Industrials, it brings scale and a long operating history.
The case against CMI:
- Revenue growth is slow (0.1%), limiting the upside engine.
- Our model's overall read is Weak (41/100).
Valuation risk — at 36.7x earnings, disappointing results could compress the multiple.
Growth risk — sluggish revenue (0.1%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Cummins is a large-cap industrials business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 36.7x earnings, which our model scores Weak (41/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.