CUMMINS INC (CMI) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does CUMMINS INC Do?
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and New Power. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers new parts and services, as well as remanufactured parts and engines. It also provides power generation systems, high-horsepower engines, heavy and medium duty engines, application engineering services, custom-designed assemblies, retail and wholesale aftermarket parts, and in-shop and field-based repair services. In addition, the company offers emission solutions; turbochargers; air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and electronic control modules, sensors, and supporting software, as well as new, replacement, and remanufactured fuel systems. Further, it provides automated transmissions; standby and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford and AVK brands; and electrified power systems with components and subsystems, including battery, fuel cell, and hydrogen production technologies. Additionally, it offers filtration, aftertreatment, controls systems, air handling systems, automated transmissions, electric power generation systems, and batteries. The company sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana. CUMMINS INC (CMI) is classified as a large-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Jennifer W. Rumsey and employs approximately 73,600 people, headquartered in Columbus, Indiana. With a market capitalization of $76.0B, CMI is one of the prominent companies in the Industrials sector.
CUMMINS INC (CMI) Stock Rating — Hold (April 2026)
As of April 2026, CUMMINS INC receives a Hold rating with a composite score of 54.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CMI ranks #863 out of 4,446 stocks in our coverage universe. Within the Industrials sector, CUMMINS INC ranks #146 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CMI Stock Price and 52-Week Range
CUMMINS INC (CMI) currently trades at $616.14. The stock gained $5.15 (0.8%) in the most recent trading session. The 52-week high for CMI is $617.98, which means the stock is currently trading -0.3% from its annual peak. The 52-week low is $260.02, putting the stock 137.0% above its annual trough. Recent trading volume was 613K shares, suggesting relatively thin trading activity.
Is CMI Overvalued or Undervalued? — Valuation Analysis
CUMMINS INC (CMI) carries a value factor score of 60/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 25.94x, compared to the Industrials sector average of 28.33x — a discount of 8%. The price-to-book ratio stands at 6.15x, versus the sector average of 2.23x. The price-to-sales ratio is 2.46x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, CMI trades at 19.36x EV/EBITDA, versus 5.70x for the sector. The EV/EBIT multiple is 19.46x.
Overall, CMI's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
CUMMINS INC Profitability — ROE, Margins, and Quality Score
CUMMINS INC (CMI) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 23.7%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 9.4% versus the sector average of 3.3%.
On a margin basis, CUMMINS INC reports gross margins of 26.0%, compared to 35.8% for the sector. The operating margin is 12.7% (sector: 6.2%). Net profit margin stands at 9.5%, versus 3.9% for the average Industrials stock. Revenue growth is running at -5.5% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CMI Debt, Balance Sheet, and Financial Health
CUMMINS INC has a debt-to-equity ratio of 154.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.76x, suggesting adequate working capital coverage. Total debt on the balance sheet is $7.55B. Cash and equivalents stand at $2.57B.
CMI has a beta of 1.09, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for CUMMINS INC is 66/100, reflecting average volatility within the normal range for its sector.
CUMMINS INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, CUMMINS INC reported revenue of $33.59B and earnings per share (EPS) of $20.62. Net income for the quarter was $3.18B. Gross margin was 26.0%. Operating income came in at $4.26B.
In FY 2025, CUMMINS INC reported revenue of $33.67B and earnings per share (EPS) of $20.62. Net income for the quarter was $2.96B. Gross margin was 25.3%. Revenue grew -1.3% year-over-year compared to FY 2024. Operating income came in at $4.03B.
In Q3 2025, CUMMINS INC reported revenue of $8.32B and earnings per share (EPS) of $3.88. Net income for the quarter was $559M. Gross margin was 25.6%. Revenue grew -1.6% year-over-year compared to Q3 2024. Operating income came in at $852M.
In Q2 2025, CUMMINS INC reported revenue of $8.64B and earnings per share (EPS) of $6.46. Net income for the quarter was $928M. Gross margin was 26.4%. Revenue grew -1.7% year-over-year compared to Q2 2024. Operating income came in at $1.23B.
Over the past 8 quarters, CUMMINS INC has demonstrated a growth trajectory, with revenue expanding from $8.80B to $33.59B. Investors analyzing CMI stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CMI Dividend Yield and Income Analysis
CUMMINS INC (CMI) currently pays a dividend yield of 1.8%. At this yield, a $10,000 investment in CMI stock would generate approximately $$177.00 in annual dividend income. The net margin of 9.5% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
CMI Momentum and Technical Analysis Profile
CUMMINS INC (CMI) has a momentum factor score of 66/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 35/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 34/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CMI vs Competitors — Industrials Sector Ranking and Peer Comparison
Within the Industrials sector, CUMMINS INC (CMI) ranks #146 out of 752 stocks based on the Blank Capital composite score. This places CMI in the top quartile of all Industrials stocks in our coverage universe. Key competitors and sector peers include South Bow Corp (SOBO) with a score of 56.5/100, TSAKOS ENERGY NAVIGATION LTD (TEN) with a score of 61.4/100, Great Lakes Dredge & Dock CORP (GLDD) with a score of 56.7/100, Tri Pointe Homes, Inc. (TPH) with a score of 57.3/100, and Clear Channel Outdoor Holdings, Inc. (CCO) with a score of 52.2/100.
Comparing CMI against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CMI vs S&P 500 (SPY) comparison to assess how CUMMINS INC stacks up against the broader market across all factor dimensions.
CMI Next Earnings Date
No upcoming earnings date has been announced for CUMMINS INC (CMI) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CMI? — Investment Thesis Summary
CUMMINS INC presents a balanced picture with arguments on both sides. The value score of 60/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 66/100, suggesting the trend favors buyers. Low volatility (stability score 66/100) reduces downside risk.
In summary, CUMMINS INC (CMI) earns a Hold rating with a composite score of 54.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CMI stock.
Related Resources for CMI Investors
Explore more research and tools: CMI vs S&P 500 comparison, top Industrials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare CMI head-to-head with peers: CMI vs SOBO, CMI vs TEN, CMI vs GLDD.