Cummins Inc.

Cummins Inc.

CMI

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Market Cap$98.92B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Cummins Inc.Cummins Inc.371.12%22%30.8

Earnings Call Q1 2026

May 5, 2026 - AI Summary

Strong Q1 results, but margin pressured by one-time Accelera charge - Sales: $8.4B, +3% YoY - EBITDA: $1.3B (15.4%), down from $1.5B (17.9%) YoY due to a $199M net charge tied to the sale of Accelera’s Low-pressure Fuel Cell business - Underlying profitability (excluding charge): EBITDA $1.5B (17.7%) vs $1.5B (17.9%) last year (slightly down ~20 bps) - Good: Power Systems strength and improving pricing/joint venture income helped offset weaker truck volumes. - Bad: Lower North America on-highway truck volumes and higher compensation weighed on results; Accelera drag remained.
Demand mix: Power generation/data centers surged; North America truck demand stayed weak - Power generation / data centers driving growth: North America power generation revenue +23% - International strength: International revenues +16% YoY, with China revenue +19% to $2.1B (including joint ventures) driven by accelerating data center demand and strong off-highway export - China construction/off-highway + export tailwind: China industry truck demand +20% YoY; exports strong - North America trucks deteriorated: North America segment revenues -6%; heavy-duty industry production -23%, heavy-duty sales -16%; medium-duty industry production -20%, medium-duty sales -19% - Surprising/important: Even with weak truck volumes, the company maintained solid margins because Power Systems was exceptionally strong.
2026 outlook raised: topline + margin improvement - Total company revenue forecast (2026): now up 8%–11% (previously up 3%–8%) - EBITDA margin guidance (2026): raised to 17.75%–18.5% - Net impact/tariffs: Management said net tariff impact on EBITDA was “immaterial” in Q1 and expects it to remain immaterial for the remainder of 2026, though quarter-to-quarter can vary. - Investment outlook: $1.35B–$1.45B expected total investment for 2026.

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$784.10

Target Price by Analysts

8.2% upsideCummins Target Price DetailsTarget Price
$183.42

Current Fair Value

74.7% downside

Overvalued by 74.7% based on the discounted cash flow analysis.

Share Statistics

Market cap$98.92 Billion
Enterprise Value$106.14 Billion
Dividend Yield$8.00 (1.12%)
Earnings per Share$20.62
Beta1.24
Outstanding Shares138,300,000

Return

Return on Equity21.64%ROE
Return on Assets7.76%
Return on Invested Capital16.17%

Valuation & Multiples

P/E Ratio37.03P/E Ratio
PEG-179.48PEG
Price to Sales2.96Price to Sales
Price to Book Ratio7.55Price to Book Ratio
Enterprise Value to Revenue3.13
Enterprise Value to EBIT27.04
Enterprise Value to Net Income39
Total Debt to Enterprise0.09
Debt to Equity0.8Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 5, 2026
EPS Estimate
$5.63
Average shareholder expectation
Revenue Estimate
$8.37 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 4, 2026
EPS Estimate
$7.26
Average shareholder expectation
Revenue Estimate
$9.33 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.9180 23.72%
Total Calls719,631 11.86%
Total Puts660,642 18.86%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %84.57% 1.34%
Total Invested$62.66B 3.80%
Investors Holding2,001 74.00%

ESG Score

No data

About Cummins Inc.

CEO: Norman Linebarger

Relevant Senate Committees

Joint Committee on Taxation

This committee provides crucial analysis and scoring for all tax legislation, directly influencing the corporate tax burden, investment incentives, and overall fiscal environment that significantly impacts Cummins' financial planning and profitability.

Finance

This powerful committee controls taxation, trade, and tariffs, all of which directly and significantly impact Cummins' profitability, supply chain costs, and international market competitiveness.

Appropriations

This committee directly allocates federal discretionary spending, determining funding for defense programs, infrastructure projects, and other government initiatives that are major sources of demand for Cummins' products.

Energy and Natural Resources

This committee oversees national energy policy, public lands, and the Department of Energy, directly impacting demand for Cummins' engines in oil & gas, mining, and power generation sectors, as well as alternative energy initiatives.

Environment and Public Works

This committee regulates the EPA, which sets crucial emissions standards for engines, directly impacting Cummins' product development, manufacturing costs, and market viability. It also drives infrastructure spending which boosts demand for CMI products.