CMICMI
US • —
$696.19
P/E
36.14
PEG
—
FCF Yield
—
Rev Growth YoY
+0.1% YoY
Gross Margin
25.4%
Health Score
7/10
D/E Ratio
0.61
Confidence
MEDIUM
Business Snapshot
Cummins Inc. is a global leader in diesel and natural gas engines, power generation equipment, and related components, serving markets including heavy-duty trucking, construction, mining, and data centers. The company operates across multiple segments, with its engine business remaining the primary revenue driver alongside its distribution and power systems units. Cummins holds a dominant competitive position in the North American heavy-duty truck engine market and has a strong global service network that creates a significant barrier to entry for competitors. While the company has a long operating history and benefits from recurring parts and service revenue, its financial profile is mature, with the most recent available TTM revenue and net income omitted from the data.
Financial Health
Gross margin stands at 25.4% with no prior-year comparison provided, while net margin is 7.9% — a moderate level that indicates the company retains a reasonable portion of revenue as profit after all costs. The balance sheet appears healthy, with a Debt/Equity ratio of 0.61x, reflecting conservative leverage, and a current ratio of 1.76x, suggesting ample short-term liquidity to cover near-term obligations...
Risk Assessment
- VALUATION — P/E of 36.14x trades at a notable premium to the sector average of 22x, exposing the stock to multiple compression risk.
- EARNINGS QUALITY — Earnings declined 4.2% year-over-year while revenue was flat, indicating margin pressure that could weigh on future profitability.
- INSIDER ACTIVITY — 6 insider sells versus 0 insider buys over the last 90 days signals a bearish sentiment from those with the most intimate knowledge of the company.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 25.4% with no prior-year comparison provided, while net margin is 7.9% — a moderate level that indicates the company retains a reasonable portion of revenue as profit after all costs. The balance sheet appears healthy, with a Debt/Equity ratio of 0.61x, reflecting conservative leverage, and a current ratio of 1.76x, suggesting ample short-term liquidity to cover near-term obligations. Return on equity is robust at 22.0%, signaling that management is generating strong returns on shareholder capital. Free cash flow and FCF yield are not provided in the data, which limits a full assessment of cash generation versus the capital expenditure required to sustain operations. Overall, the financial health is solid with moderate debt and strong profitability, providing capacity for continued reinvestment and dividend payments, though the absence of free cash flow data prevents a complete picture of cash sustainability.
- VALUATION — P/E of 36.14x trades at a notable premium to the sector average of 22x, exposing the stock to multiple compression risk. - EARNINGS QUALITY — Earnings declined 4.2% year-over-year while revenue was flat, indicating margin pressure that could weigh on future profitability. - INSIDER ACTIVITY — 6 insider sells versus 0 insider buys over the last 90 days signals a bearish sentiment from those with the most intimate knowledge of the company. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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