March 01, 2026 a 07:43 am
CMI: Fundamental Ratio Analysis - Cummins Inc.
Cummins Inc. presents a strong competitive position within the industrial machinery sector, fueled by its diversified offerings and global reach. Despite some financial risks reflected in its leverage, the company's robust return metrics and consistent innovation make it a valuable consideration for investors targeting industrial growth stocks.
Fundamental Rating
Cummins Inc. exhibits a stable financial foundation with positive return metrics, although its leverage remains a crucial factor to monitor.
| Category | Rating | Score |
|---|---|---|
| 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 indicates a consistency in financial stability, giving confidence to current scores.
| Date | Overall Score | Discounted Cash Flow | Return on Equity | Return on Assets | Debt to Equity | Price to Earnings | Price to Book |
|---|---|---|---|---|---|---|---|
| 2026-02-27 | 3 | 3 | 5 | 4 | 2 | 2 | 1 |
| -- | 0 | 3 | 5 | 4 | 2 | 2 | 1 |
Analyst Price Targets
Analyst estimates show strong potential with a positive consensus and significant upside.
| High | Low | Median | Consensus |
|---|---|---|---|
| $703 | $540 | $605 | $618.4 |
Analyst Sentiment
The analyst sentiment for Cummins Inc. leans favorably with strong recommendations to buy.
| Recommendation | Count | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 25 | |
| Hold | 24 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
Cummins Inc. appears as a promising candidate for investors seeking exposure to the industrial sector. The company's robust returns and innovative capabilities are balanced against its moderate financial leverage, presenting both opportunities for growth and risks inherent to its business strategies. Analyst confidence and favorable ratings further support its investment potential.