Cummins Inc.

Valuation Analysis

About the Company

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 inte

Cummins Inc. Stock at a Glance

Cummins Inc. (CMI) is currently trading at $659.58 with a market capitalization of $91B. The trailing P/E ratio stands at 34.25x, with a forward P/E of 19.46x. The 52-week range spans from $307.90 to $718.08; the current price is 8.1% below the yearly high. Year-over-year revenue growth stands at +2.7%. The net profit margin stands at 7.89%.

💰 Dividend

Cummins Inc. pays an annual dividend of $8.00 per share, representing a yield of 1.21%. The payout ratio stands at 40.62%.

📊 Analyst Rating

19 analysts rate Cummins Inc. (CMI) on consensus: Buy. The average price target is $740.12, implying +12.21% from the current price. Analyst price targets range from $520.00 to $850.00.

Cummins Inc.: The Investment Case in Detail

Cummins Inc. (CMI) operates in the Industrials — specifically Specialty Industrial Machinery — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bear Case

Revenue growth has slowed to just 2.7%, which is below nominal GDP — the business is no longer outgrowing the broader economy. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

What to Watch Next

• The forward P/E of 19.46x is meaningfully below the trailing 34.25x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility.

Trading Data

💵 Dividend Info

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