Reading the tape
NYSE: CMI
Cummins Inc.
Industrials · Industrial - Machinery
Market Cap
$93.77B
52w High
$718.08
52w Low
$307.90
P/E
35.16
Volume
701.03K
Outstanding Shares
137.99M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inModerate confidence
1Y Price: 121.78%Revenue (TTM): 0.06%FCF (TTM): 38,057.14%P/FCF: 97th pct
What changed
The stock rose 121.78% over the last year. Revenue grew 0.06% over the trailing twelve months. Operating margin moved from 11.69% to 11.24%. Free cash flow grew 38,057.14% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (97th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 11.24% — continued expansion would be needed to justify the premium. Revenue growth of 0.06% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide.
CEOJennifer W. Rumsey
SectorIndustrials
IndustryIndustrial - Machinery
Employees69,600
IPO dateOct 3, 1947
Valuation
Forward P/E—
EV/EBITDA14.02
Enterprise value$75.66B
Stock splits
Jan 3, 2008↑ Forward
Every 1 shares became 2
Apr 10, 2007↑ Forward
Every 1 shares became 2
Nov 12, 1993↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth2.74%
Gross margin25.39%▲2.21%vs FY2024
Operating margin11.24%▲4.39%vs FY2024
ROE23.02%▼40.08%vs FY2024
Analyst consensus
RatingBuy
Target price$664.30▼2.24%
26
Buy
24
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Aug 4, 2026
Q3 FY26 · EPS est $7.11 · Revenue est $9.24B
View
Dividends
$7.82/shareQuarterlyDividend Achiever · 23yrSafeCMI pays a dividend with a 1.15% dividend yield, 23 consecutive years of growth, growing at 8% annually, covered 2.3× by free cash flow.
Dividend Yield
1.15%
Annual Div / Share
$7.82
5yr CAGR
+8%
Doubles every ~9.0yr
Payout Ratio
40.4%
Safe
Dividend Growth Rate
3yr CAGR
+8.28%
5yr CAGR
+8%
10yr CAGR
+7.76%
Dividend Safety
9/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2025$7.82+9.5%
2024$7.14+8.0%
2023$6.61+7.3%
2022$6.16+8.1%
2021$5.70+7.1%
2020$5.32+4.9%
2019$5.07+12.7%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$12/yr
$1/mo
In 5 yrs
$17/yr+47%
$1/mo
In 10 yrs
$25/yr+116%
$2/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$12/yr $1/mo | $17/yr+47% $1/mo | $25/yr+116% $2/mo |
Yield-on-cost grows from 1.15% → 2.48% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
CMI has raised its dividend for 23 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 2.3× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 8% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.
Congressional Activity
Congress Trades in CMI
STOCK Act disclosures from senators and representatives.
Jared Moskowitz
FLhouseDemocratSale2026-03-31$1,001 - $15,000+31d to disclose