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.
Cummins Inc. (CMI) reported trailing twelve months revenue of $33.89B as of March 2026, a 0.1% increase year-over-year. Quarterly revenue reached $8.40B, reflecting continued top-line momentum.
Cummins Inc. generated $2.67B in TTM net income, with quarterly EBITDA of $1.23B. The operating margin contracted from 13.9% to 11.3%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (11.3%) and net margin (7.8%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 10.1% a year ago, reflecting increased costs or interest expense.
CMI trades at a P/E of 34.1x (a premium multiple) and a P/S of 2.7x. The price-to-book ratio of 7.4x indicates a significant premium over book value.
The company generated $120.00M in free cash flow over the trailing twelve months, a 172.7% increase year-over-year, indicating cash generation ability. The balance sheet shows $34.45B in total assets with $6.73B in long-term debt against $12.35B in stockholders equity for a debt-to-equity ratio of 0.5. Data based on the most recent quarterly reports.
Competitive analysis based on 21 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 21 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.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation