January 24, 2026 a 07:43 am
CMI: Fundamental Ratio Analysis - Cummins Inc.
Cummins Inc., a prominent player in the industrial machinery sector, presents a mixed investment opportunity. While it boasts strong ROE and ROA figures, potential investors should be cautious of its relatively high debt-to-equity and price-to-book ratios.
Fundamental Rating
Cummins Inc. maintains a solid fundamental rating, primarily driven by strong return metrics. However, some financial metrics suggest caution.
| Category | Score | Visual Representation |
|---|---|---|
| Discounted Cash Flow | 3 | |
| Return On Equity | 5 | |
| Return On Assets | 4 | |
| Debt To Equity | 2 | |
| Price To Earnings | 2 | |
| Price To Book | 1 |
Historical Rating
The historical performance shows consistency in Cummins' scores, highlighting the company's stability over time.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2026-01-23 | 3 | 3 | 5 | 4 | 2 | 2 | 1 |
| N/A | 0 | 3 | 5 | 4 | 2 | 2 | 1 |
Analyst Price Targets
Analysts maintain a positive outlook for Cummins, with the consensus being a 'Buy.' The price targets suggest there is room for growth.
| High | Low | Median | Consensus |
|---|---|---|---|
| $653 | $475 | $585 | $575.14 |
Analyst Sentiment
The analyst sentiment remains optimistic with a majority indicating 'Buy' recommendations, reflecting confidence in Cummins' market position.
| Recommendation | Count | Proportion |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 26 | |
| Hold | 23 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
Cummins Inc. presents a stable investment with strong ROE and ROA, appealing to investors seeking reliability. However, its high debt-to-equity ratio and price-to-book ratio necessitate thorough due diligence. The positive analyst sentiment and price targets indicate potential growth opportunities, but investors should remain cautious of external economic factors impacting the industrial sector.