Cummins Inc.CMI
NYSE•Industrials•Specialty Industrial Machinery
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.
as of March 2026
Are revenues and earnings expanding?
$33.89B in TTM revenue grew 0.1% YoY, reaching $8.40B last quarter. TTM EBITDA of $4.96B on operating income of $949.00M shows growth is flowing through. Net income of $2.67B TTM confirms the company is converting revenue into profit. Revenue is growing modestly — monitor for acceleration or deceleration.
Is revenue turning into profit effectively?
Op. margin of 11.3% is down 2.6% YoY — costs are rising relative to revenue. Net margin at 7.8% and gross margin of 26.7%. ROE of 21.6% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 37.1x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 2.9x and P/B of 8.0x provide additional context. The premium P/E is not backed by strong revenue growth — the stock may be overvalued.
Is the company financially stable?
With $34.45B in assets and $6.73B in long-term debt, the D/E of 0.5 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $120.00M on $309.00M in operating cash flow. The FCF / Net Income ratio of 0.0x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $2.61B provide financial flexibility. Share count is stable — no dilution or buyback activity.
Competitive analysis based on 68 quarters of fundamental data
Operating margins are positive at ~11.5% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 24.5% suggests a durable competitive advantage and efficient capital allocation.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 68 quarters
Margins are stable or improving at ~11.3% — no sign of cost or pricing stress.
FCF consistently trails net income (avg 0.7x) — earnings may be inflated by non-cash items or aggressive accounting.
Debt-to-equity has risen 24.1% recently — increasing financial risk even if the current ratio is manageable.
Revenue has softened, declining in 4 quarters. Monitor for further erosion.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Share count is stable — no significant dilution or buyback activity.