CMINEUTRAL

CMI Return on Equity (ROE) Analysis

21.1%

Updated 57h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders' money; a 21.1% ROE means CMI earns $0.211 for every dollar of equity.

Sector Performance

70th percentile

CMI

21.1%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

22.0%(Aug 2026)

↓ Declining

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders' money; a 21.1% ROE means CMI earns $0.211 for every dollar of equity.

This outpaces the sector median of 13.5%, placing CMI in the 69th percentile among peers, so profitability is above average. The trend is not fully available: year-over-year change is N/A, but quarter-over-quarter ROE declined by 4.1%, slipping from 22.0% to 21.1%. The strong level combined with the recent decline suggests above-average profitability is intact, yet the dip signals modest pressure that could temper momentum. This mixed picture aligns with the overall NEUTRAL verdict: the high ROE supports quality, while the negative quarter-over-quarter change adds caution, leaving no clear bullish or bearish edge.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CMI?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are CMI's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.