Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Cummins Inc

CMI · NYSE · Industrial

Fundamental quality

REASONABLE

70

out of 100

Cummins Inc earns a fundamental-quality score of 70 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its financial strength (net debt 0.86× EBITDA). Its weakest area is its growth (revenue +10.8%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Cummins makes the diesel engines powering trucks across half the world, plus generators and power systems. Its challenge of the era: managing the diesel cash cow while investing in hydrogen, natural gas and batteries for heavy transport's transition.

What will shape its future

  • The North American truck cycle, its governing market: orders in waves, then years of digestion.
  • The truck's energy transition: who wins among clean diesel, gas, batteries and hydrogen.
  • Engine aftermarket, the steady stream funding the technology bet.

Breakdown by area

I.Growth
60

EPS growth: 9.4% · Revenue growth: 10.8%

II.Profitability
65

Net margin: 8.2% · ROE: 22.6% · ROIC: 17%

III.Financial health
79

Net debt/EBITDA: 0.86x · FCF: 7.9%

Source: SEC EDGAR · TTM through 31/03/2026

The score includes +2 for dividend strength: 8 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 44%
ROEbeats 62%
Growthbeats 68%
Cash generationbeats 44%
Less debtbeats 75%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Cummins Inc strengths

  • Strong return on equity (ROE of 22.6%): it puts shareholder capital to good use.
  • Revenue growing (10.8% annualized).
  • Positive free cash flow year after year, a self-funding business.
  • Solid net margin (8.2%): the business is clearly profitable.

Cummins Inc risks and weaknesses

  • Its net debt has grown over the period.

Cummins Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202019,8111,8112,194271
202124,0212,1641,5221,046
202228,0742,1831,0463,051
202334,0658402,7532,741
202434,1024,0682793,773
202533,6702,9572,3864,041

Between 2020 and 2025, revenue went from $19,811M to $33,670M (+70%) and net income went from $1,811M to $2,957M (+63%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+2.7%
  • Net income-20%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$7.64

per share, yearly

35.7% of earnings

Payout

at least 8 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Cummins Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Cummins Inc a good company to invest in?

In terms of business quality, Cummins Inc scores 70 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Cummins Inc a profitable company?

Cummins Inc is profitable, with a net margin of 8.2%, though a thin one.

Does Cummins Inc have a lot of debt?

Not particularly. Its net debt is 0.86 times its EBITDA, a low level.

Is Cummins Inc growing?

Its revenue has grown 10.8% annualized in recent years and its earnings per share 9.4%.

Does Cummins Inc generate cash?

Yes. It converts about 7.9% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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