Cummins Inc (CMI) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Cummins Inc stock (CMI) is currently trading at $553.36. Cummins Inc PE ratio is 27.02. Cummins Inc PS ratio (Price-to-Sales) is 2.28. Analyst consensus price target for CMI is $619.92. WallStSmart rates CMI as Hold.
- CMI PE ratio analysis and historical PE chart
- CMI PS ratio (Price-to-Sales) history and trend
- CMI intrinsic value — DCF, Graham Number, EPV models
- CMI stock price prediction 2025 2026 2027 2028 2029 2030
- CMI fair value vs current price
- CMI insider transactions and insider buying
- Is CMI undervalued or overvalued?
- Cummins Inc financial analysis — revenue, earnings, cash flow
- CMI Piotroski F-Score and Altman Z-Score
- CMI analyst price target and Smart Rating
Cummins Inc
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CMI Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Cummins Inc (CMI)
CMI trades at a significant discount to its Graham intrinsic value of $960.80, offering a 38% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Cummins Inc (CMI) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, return on equity. Concerns around price/book and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Cummins Inc (CMI) Key Strengths (5)
Earnings per share surging 41.40% year-over-year
87.37% of shares held by major funds and institutions
Large-cap company with substantial market presence
Every $100 of equity generates $24 in profit
Good growth relative to its price
Supporting Valuation Data
Cummins Inc (CMI) Areas to Watch (5)
Very expensive at 6.0x book value
Revenue growing slowly at 1.10% annually
Thin operating margins with cost pressures present
Thin profit margins with limited profitability
Revenue is fairly priced at 2.28x sales
Supporting Valuation Data
Cummins Inc (CMI) Detailed Analysis Report
Overall Assessment
This company scores 61/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.2/10) while 5 fall into concern territory (avg 3.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on EPS Growth, Institutional Own., Market Cap. Valuation metrics including PEG Ratio (1.47) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 23.90%. Growth metrics are encouraging with EPS Growth at 41.40%.
The Bear Case
The primary concerns are Price/Book, Revenue Growth, Operating Margin. Some valuation metrics including Price/Sales (2.28), Price/Book (5.97) suggest expensive pricing. Growth concerns include Revenue Growth at 1.10%, which may limit upside. Profitability pressure is visible in Operating Margin at 10.90%, Profit Margin at 8.44%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Book improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 23.90% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 1.10% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (EPS Growth, Institutional Own.) and negatives (Price/Book, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
CMI Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
CMI's Price-to-Sales ratio of 2.28x trades 75% above its historical average of 1.3x (96th percentile), historically expensive. The current valuation is 11% below its historical high of 2.56x set in Mar 2007, and 685% above its historical low of 0.29x in Feb 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Cummins Inc (CMI) · INDUSTRIALS › SPECIALTY INDUSTRIAL MACHINERY
The Big Picture
Cummins Inc is in a high-growth phase, prioritizing rapid expansion over margins. Revenue reached 33.7B with 110% growth year-over-year. Profit margins are thin at 8.4%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Revenue growing at 110% YoY, reaching 33.7B. This pace significantly outperforms most SPECIALTY INDUSTRIAL MACHINERY peers.
ROE of 2390.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Margin expansion: can Cummins Inc push profit margins above 15% as the business scales?
Growth sustainability: can Cummins Inc maintain 110%+ revenue growth, or will competition slow it down?
Sector dynamics: monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive moves, and regulatory changes that could impact Cummins Inc.
Bottom Line
Cummins Inc is a high-conviction growth story with revenue accelerating at 110% while profitability is still developing. For growth-oriented investors, the trajectory is compelling. For value investors, the thin 8.4% margins and premium valuation suggest patience until the unit economics mature further.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(78 last 3 months)
Data sourced from SEC Form 4 filings
Last updated: 8:26:09 AM
About Cummins Inc(CMI)
NYSE
INDUSTRIALS
SPECIALTY INDUSTRIAL MACHINERY
USA
Cummins is a Columbus, Indiana based multinational corporation that designs, manufactures, and distributes engines, filtration, and power generation products. Cummins also services engines and related equipment, including fuel systems, controls, air handling, filtration, emission control, electrical power generation systems, and trucks.