April 28, 2026 a 07:43 pm
CMI: Fundamental Ratio Analysis - Cummins Inc.
Cummins Inc., a leader in the industrial machinery sector, offers diversified engine solutions, supporting multiple industries worldwide. This analysis evaluates its current market position, financial health, and potential growth, presenting an insight into investments in CMI stock.
Fundamental Rating
Cummins maintains a steady financial performance with moderate growth potential. Below are the fundamental ratings based on key financial metrics.
| Category | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 3 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 1 | |
| Price to Earnings | 3 | |
| Price to Book | 1 |
Historical Rating
The past and present financial metrics indicate consistent performance stability, with room for improvement in specific areas.
| Date | Overall Score | DCF | ROE | ROA | Debt to Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2026-04-28 | 3 | 3 | 5 | 5 | 1 | 3 | 1 |
| Prior | 0 | 3 | 5 | 5 | 1 | 3 | 1 |
Analyst Price Targets
Analyst estimates reflect optimistic growth with a consistent consensus of a long-term buy outlook.
| High | Low | Median | Consensus |
|---|---|---|---|
| $730 | $540 | $605 | $621.1 |
Analyst Sentiment
Analysts show confidence in Cummins with a predominant recommendation to buy.
| Recommendation | Count | Visualization |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 26 | |
| Hold | 24 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
Cummins Inc.'s stock displays strong fundamentals, particularly in its equity and asset returns, whilst maintaining low debt. Price evaluations suggest modest inflation, potentially offering positive returns for investors. However, some financial ratios indicate potential overvaluation risks. Forward strategies and innovations in sustainable energy might provide growth opportunities, offering long-term value to stakeholders.