Cummins Valuation
| CMI Stock | USD 535.71 -3.04 -0.56% |
Currently, Cummins appears to be undervalued. Cummins has a latest Real Value of $595.22 per share. The latest price of Cummins is $535.71. Our model measures the value of Cummins from evaluating Cummins fundamentals such as Profit Margin of 0.08 %, return on equity of 0.24, and Current Valuation of 78.52 B as well as evaluating its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Cummins' valuation include:
Price Book 5.9937 | Enterprise Value | Enterprise Value Ebitda 14.5491 | Price Sales 2.1983 | Forward PE 20.6612 |
Undervalued
Today
Please note that Cummins' price fluctuation is Very Low at this time. Calculation of the real value of Cummins is based on 3 months time horizon. Increasing Cummins' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Cummins is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cummins Stock. However, Cummins' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 535.71 | Real 595.22 | Target 619.92 | Hype 538.34 | Naive 519.04 |
The intrinsic value of Cummins Stock is an estimate of its true worth based on underlying business fundamentals. Common approaches to estimate Cummins' intrinsic value include DCF analysis, earnings-based multiples, and net asset value models.
A balanced view of Cummins must account for both its upside potential and its downside risk. Forecasting how Cummins stock performs depends on integrating both traditional fundamentals and market-based signals. Beyond Cummins' core financials, our valuation incorporates: Multiple valuation approaches for Cummins each tell part of the story. A disciplined investor reconciles outputs of different methods to arrive at a realistic estimate of Cummins' fair value.
Financial indicators imply that Cash is moving in a progressing direction. Previously, Cash was valued at 2.85 Billion. As of last week, Accounts Payable is projected to grow to approximately 4 B, while Change To Account Receivables is moving higher toward under -581.4 M.Cummins Cash | 2.99 Billion |
Cummins Revenue by Product
Cummins Total Value Analysis
From a capital-structure perspective, Cummins is being framed with enterprise value of 78.52 B, market capitalization of 74.02 B, debt obligations near 8.11 B, and cash resources of 2.85 B. That snapshot should be treated as one valuation lens rather than as final proof of fair value because the interpretation can shift quickly when financing assumptions change.| Takeover Price | Market Cap | Debt Obligations | Cash |
78.52 B | 74.02 B | 8.11 B | 2.85 B |
Cummins Investor Information
About 87.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.48. Cummins recorded earning per share (EPS) of 20.52. The company last dividend was issued on the 20th of February 2026. The firm completed a 2:1 stock split on 3rd of January 2008. Cummins financial framework integrates liquidity support with earnings capacity. Profitability levels reflect stable operating returns across recent reporting periods. In industrial sectors, operating leverage, working capital efficiency, and backlog visibility are important indicators.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.12 | 0.1187 |
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| Total Cash From Operating Activities | 3.8 B | 3.6 B |
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| Operating Income | 4.2 B | 4 B |
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Cummins Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cummins has an asset utilization ratio of 99.05 percent. This signifies that the Company is making $0.99 for each dollar of assets. An increasing asset utilization means that Cummins is more efficient with each dollar of assets it utilizes for everyday operations.Macro event markers
Cummins Profitability Analysis
Based on Cummins' profitability indicators, Cummins is performing exceptionally well currently. It has a great probability to showcase excellent profitability results in April. Profitability indicators assess Cummins' ability to earn profits and add value for shareholders.Net Income | First Reported 1985-09-30 | Previous Quarter 536 M | Current Value 593 M | Quarterly Volatility 310.5 M |
Macro event markers
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.26 | 0.2529 |
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| Net Profit Margin | 0.0887 | 0.0844 |
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| Operating Profit Margin | 0.12 | 0.1187 |
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| Pretax Profit Margin | 0.12 | 0.1177 |
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| Return On Assets | 0.0878 | 0.0836 |
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| Return On Equity | 0.24 | 0.2302 |
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Profitability analysis for Cummins works best when investors review the financial ratios and fundamental drivers that explain how efficiently the business converts revenue, assets, and operating inputs into earnings. These profitability indicators help investors judge how well Cummins uses its assets to create earnings power and long-term shareholder value.
Cummins Earnings per Share Projection vs Actual
The earnings revision baseline for Cummins points to 5.63 in next EPS, with an estimate spread from 4.95 to 6.78. The trailing 12-month EPS anchor is 20.52. EPS is most informative when read together with margin stability and cash-flow conversion. EPS forecast analysis for Cummins is useful, but investors should remember that consensus numbers often reflect a normalized estimate rather than a full reconstruction of every accounting detail. Cummins is projected to generate 5.63 in earnings per share on 31st of March 2026. Future earnings-per-share expectations are often a key input when investors test valuation assumptions and momentum into the next quarter.Macro event markers
Earnings Estimation Breakdown
Analyst consensus points to a next EPS of 5.63 for Cummins, supported by trailing twelve-month earnings data from Cummins. The full range of analyst projections spans 4.9504 to 6.78, quantifying the uncertainty in the forward estimate. One-time items are stripped from this figure to reflect the ongoing earnings run rate.Last Reported EPS
4.95 Lowest | Expected EPS | 6.78 Highest |
Earnings Projection Consensus
When analyst consensus implies a fair value for Cummins above today's price, it creates a positive valuation gap that some investors associate with upside potential. A fair value below the current price does not automatically mean overvalued - growth-oriented stocks often trade above near-term earnings models. Use this signal as a starting point for deeper due diligence, not a standalone investment decision.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 23 | 85.36% | 4.27 | 5.63 | 20.52 |
Cummins Ownership Allocation
The majority of Cummins' outstanding shares are owned by institutional investors. Large asset managers, pension funds, and sovereign wealth funds that invest on behalf of clients or beneficiaries are typically subject to stricter disclosure rules than retail investors - including mandatory 13F filings that reveal quarterly position changes. Tracking these filings can highlight shifts in institutional conviction around Cummins. Of Cummins' outstanding shares, about 87% are held by institutions and 12% by the general public.Cummins Profitability Analysis
The company reported last year's revenue of 33.67 B. Total Income to common stockholders was 2.84 B with profit before taxes, overhead, and interest of 8.67 B.Cummins Past Distributions to Stockholders
Valuation analysis for Cummins should be treated as an ongoing process rather than a one-time answer, especially when investors are trying to understand how the market is pricing this stock. The practical goal is to understand how new information changes the valuation case, not to defend one static estimate after conditions move.
Valuation Framework, Methodology & Assumptions
Cummins is a large-cap equity in Construction Machinery & Heavy Transportation Equipment, Specialty Industrial Machinery, Industrials categories. Revenue consistency stabilizes valuation context. Cummins currently trades at P/E of 18.7, P/B of 5.99, P/S of 2.2.
Data shown for Cummins is aggregated from periodic company reporting and market reference feeds and normalized across reporting formats. Analyst inputs may be included when coverage is available. Source publication cadence can introduce delays. Valuation outputs are model-derived and depend on published assumptions and reference inputs.
This content is curated and reviewed by:
Gabriel Shpitalnik - Member of Macroaxis Editorial BoardInvestors studying Cummins need valuation context because market price alone does not explain whether the business is being priced aggressively or cautiously. Used properly, valuation helps investors judge whether the current market view looks justified relative to the company's operating evidence.
Share ownership in Cummins is more than a price quote; it is a proportionate claim on the company's equity base and future distributions. Shares outstanding are near 138.2 M.
Cummins Dividends Analysis For Valuation
Financial indicators imply that Dividend Yield is moving in a progressing direction. Previously, Dividend Yield was valued at 0.01. As of last week, Dividend Payout Ratio is projected to grow to 0.39, while Dividends Paid is moving higher toward under -1 B.. Financial indicators imply that Retained Earnings are moving in a progressing direction. Previously, Retained Earnings were valued at 22.62 Billion. As of last week, Price Earnings Ratio is projected to grow to 26.00, whereas Retained Earnings Total Equity is moving lower toward under 11.8 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -1.1 B | -1 B | |
| Dividend Yield | 0.01 | 0.03 | |
| Dividend Payout Ratio | 0.37 | 0.39 | |
| Dividend Paid And Capex Coverage Ratio | 1.58 | 1.18 |
A dividend review of Cummins is useful because distributions affect shareholder return even when they do not change enterprise value directly. A credible dividend profile can support valuation confidence, while an unstable one may call for more caution around expected return.
Cummins Growth Indicators
A growth thesis around Cummins should be tested carefully because strong valuation often reflects confidence that the business can keep compounding faster than peers. Used properly, growth analysis helps investors separate durable compounding from optimism that may already be fully priced in.
| Common Stock Shares Outstanding | 138.7 M | |
| Quarterly Earnings Growth Y O Y | 0.414 | |
| Forward Price Earnings | 20.6612 |
Cummins Current Valuation Indicators
Valuation work on Cummins becomes more reliable when investors compare several lenses at once, including market value, enterprise value. revenue scale, and expected cash-flow durability. The better valuation questions are comparative: what is the market paying for each dollar of revenue, profit, and asset base, and is that premium justified?
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