Cummins Inc. (CMI) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Industrial - Machinery
EV/EBITDA
↑
20.96
↑+70% vs avg
5yr avg: 12.34
30Y Low3.5·High15.3
P/FCF
↑
41.45
↓-23% vs avg
5yr avg: 54.10
30Y Low7.8·High173.8
P/B Ratio
↑
7.40
↑+87% vs avg
5yr avg: 3.96
30Y Low1.0·High5.3
ROE
↓
23.0%
↓+2% vs avg
5yr avg: 22.5%
30Y Low-8%·High37%
Debt/EBITDA
↑
1.63
↓-13% vs avg
5yr avg: 1.88
30Y Low0.2·High5.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
CMI Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Cummins Inc. trades at 34.9x earnings, 52% above its 5-year average of 22.9x, sitting at the 89th percentile of its historical range. Compared to the Industrials sector median P/E of 25.9x, the stock trades at a premium of 35%. On a free-cash-flow basis, the stock trades at 41.4x P/FCF, 23% below the 5-year average of 54.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $98.9B | $70.8B | $48.5B | $34.2B | $34.5B | $31.8B | $33.8B | $27.9B | $21.8B | $29.6B | $23.1B |
| Enterprise Value | $104.2B | $76.1B | $54.4B | $39.2B | $40.7B | $33.8B | $35.1B | $29.7B | $22.9B | $30.2B | $23.8B |
| P/E Ratio → | 34.92 | 24.90 | 12.29 | 46.52 | 16.02 | 14.93 | 18.91 | 12.36 | 10.16 | 29.59 | 16.61 |
| P/S Ratio | 2.94 | 2.10 | 1.42 | 1.00 | 1.23 | 1.32 | 1.71 | 1.19 | 0.92 | 1.45 | 1.32 |
| P/B Ratio | 7.40 | 5.28 | 4.29 | 3.45 | 3.37 | 3.39 | 3.76 | 3.30 | 2.63 | 3.62 | 3.23 |
| P/FCF | 41.45 | 29.67 | 173.80 | 12.42 | 32.96 | 21.65 | 15.76 | 11.61 | 13.65 | 17.49 | 17.25 |
| P/OCF | 27.31 | 19.55 | 32.61 | 8.62 | 17.57 | 14.11 | 12.43 | 8.78 | 9.15 | 12.98 | 11.96 |
P/E links to full P/E history page with 30-year chart
CMI EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Cummins Inc.'s enterprise value stands at 21.0x EBITDA, 70% above its 5-year average of 12.3x. The Industrials sector median is 13.9x, placing the stock at a 51% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.26 | 1.60 | 1.15 | 1.45 | 1.41 | 1.77 | 1.26 | 0.96 | 1.48 | 1.36 |
| EV / EBITDA | 20.96 | 15.31 | 11.30 | 14.08 | 10.97 | 10.05 | 11.91 | 8.80 | 6.75 | 10.35 | 9.89 |
| EV / EBIT | 26.95 | 17.72 | 10.32 | 19.60 | 13.50 | 11.83 | 14.38 | 10.08 | 8.00 | 12.34 | 11.93 |
| EV / FCF | — | 31.88 | 195.04 | 14.24 | 38.94 | 23.03 | 16.33 | 12.33 | 14.38 | 17.86 | 17.78 |
CMI Profitability
Margins and return-on-capital ratios measuring operating efficiency
Cummins Inc. earns an operating margin of 11.5%, above the Industrials sector average of 4.9%. Operating margins have expanded from 5.2% to 11.5% over the past 3 years, signaling improving operational efficiency. ROE of 23.0% indicates solid capital efficiency, compared to the sector median of 8.2%. ROIC of 16.1% represents solid returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.3% | 25.3% | 24.7% | 24.2% | 23.9% | 23.7% | 24.7% | 25.4% | 24.1% | 25.0% | 25.5% |
| Operating Margin | 11.5% | 11.5% | 11.0% | 5.2% | 10.4% | 11.3% | 11.5% | 11.5% | 11.7% | 11.4% | 10.7% |
| Net Profit Margin | 8.4% | 8.4% | 11.6% | 2.2% | 7.7% | 8.9% | 9.0% | 9.6% | 9.0% | 4.9% | 8.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.0% | 23.0% | 37.2% | 7.3% | 21.9% | 23.2% | 20.5% | 27.0% | 26.1% | 13.0% | 18.7% |
| ROA | 8.7% | 8.7% | 12.4% | 2.4% | 8.0% | 9.2% | 8.4% | 11.6% | 11.5% | 6.0% | 9.2% |
| ROIC | 16.1% | 16.1% | 17.5% | 8.4% | 15.7% | 18.8% | 16.7% | 20.6% | 22.9% | 21.0% | 18.2% |
| ROCE | 17.3% | 17.3% | 19.0% | 9.3% | 16.5% | 16.4% | 15.2% | 20.6% | 22.2% | 20.2% | 17.1% |
CMI Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Cummins Inc. carries a Debt/EBITDA ratio of 1.6x, which is manageable (48% below the sector average of 3.2x). Net debt stands at $5.3B ($8.1B total debt minus $2.8B cash). Interest coverage of 13.0x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.61 | 0.61 | 0.67 | 0.73 | 0.82 | 0.49 | 0.51 | 0.34 | 0.30 | 0.25 | 0.25 |
| Debt / EBITDA | 1.63 | 1.63 | 1.58 | 2.59 | 2.25 | 1.37 | 1.57 | 0.85 | 0.73 | 0.69 | 0.76 |
| Net Debt / Equity | — | 0.39 | 0.52 | 0.51 | 0.61 | 0.21 | 0.14 | 0.21 | 0.14 | 0.08 | 0.10 |
| Net Debt / EBITDA | 1.06 | 1.06 | 1.23 | 1.81 | 1.68 | 0.60 | 0.41 | 0.52 | 0.35 | 0.22 | 0.29 |
| Debt / FCF | — | 2.21 | 21.24 | 1.83 | 5.98 | 1.37 | 0.57 | 0.72 | 0.74 | 0.38 | 0.52 |
| Interest Coverage | 13.05 | 13.05 | 14.25 | 5.34 | 15.17 | 25.78 | 24.38 | 27.00 | 25.15 | 30.20 | 28.97 |
CMI Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.76x means Cummins Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 1.16x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.18x to 1.76x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.76 | 1.76 | 1.31 | 1.18 | 1.27 | 1.74 | 1.88 | 1.50 | 1.54 | 1.57 | 1.78 |
| Quick Ratio | 1.16 | 1.16 | 0.80 | 0.74 | 0.77 | 1.12 | 1.34 | 0.94 | 0.95 | 1.01 | 1.16 |
| Cash Ratio | 0.38 | 0.38 | 0.20 | 0.21 | 0.23 | 0.45 | 0.61 | 0.23 | 0.24 | 0.28 | 0.32 |
| Asset Turnover | — | 0.99 | 1.08 | 1.06 | 0.93 | 1.01 | 0.88 | 1.19 | 1.25 | 1.13 | 1.17 |
| Inventory Turnover | 4.32 | 4.32 | 4.47 | 4.55 | 3.81 | 4.21 | 4.36 | 5.05 | 4.80 | 4.84 | 4.88 |
| Days Sales Outstanding | — | 63.07 | 55.45 | 59.82 | 67.63 | 60.63 | 70.38 | 56.83 | 59.36 | 64.65 | 63.06 |
CMI Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Cummins Inc. returns 1.1% to shareholders annually primarily through dividends. The payout ratio of 37.1% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 2.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.5% | 2.0% | 2.7% | 2.5% | 2.5% | 2.3% | 2.7% | 3.3% | 2.4% | 2.9% |
| Payout Ratio | 37.1% | 37.1% | 24.6% | 125.3% | 39.7% | 38.0% | 43.7% | 33.7% | 33.5% | 70.2% | 48.5% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 4.0% | 8.1% | 2.1% | 6.2% | 6.7% | 5.3% | 8.1% | 9.8% | 3.4% | 6.0% |
| FCF Yield | 2.4% | 3.4% | 0.6% | 8.1% | 3.0% | 4.6% | 6.3% | 8.6% | 7.3% | 5.7% | 5.8% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 1.1% | 4.4% | 1.9% | 4.5% | 5.2% | 1.5% | 3.4% |
| Total Shareholder Yield | 1.1% | 1.5% | 2.0% | 2.7% | 3.6% | 6.9% | 4.2% | 7.3% | 8.5% | 3.9% | 6.3% |
| Shares Outstanding | — | $139M | $139M | $143M | $142M | $146M | $149M | $156M | $163M | $167M | $169M |
Peer Comparison
Compare CMI with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 CMIYou | $99B | 34.9 | 21.0 | 41.4 | 25.3% | 11.5% | 23.0% | 16.1% | 1.6 |
 PCAR | $61B | 25.8 | 13.7 | 20.2 | 16.2% | 10.4% | 12.9% | 12.2% | — |
 CAT | $431B | 49.2 | 34.5 | 42.0 | 32.3% | 16.6% | 43.5% | 15.9% | 3.2 |
 DE | $160B | 32.0 | 20.3 | 49.6 | 36.5% | 18.8% | 19.3% | 7.7% | 6.0 |
 AGCO | $9B | 12.3 | 10.3 | 11.8 | 24.8% | 6.9% | 16.9% | 8.3% | 2.6 |
 CNH | $13B | 26.4 | 10.9 | 6.7 | 31.4% | 15.4% | 6.5% | 6.6% | 7.9 |
 ALSN | $11B | 17.4 | 11.0 | 16.4 | 48.4% | 32.3% | 35.4% | 22.2% | 2.7 |
 BWA | $12B | 46.4 | 6.9 | 10.4 | 18.7% | 9.2% | 4.9% | 12.9% | 2.0 |
 DNOW | $1B | -18.0 | — | — | 17.0% | -2.9% | -5.3% | -3.3% | — |
 WAB | $46B | 39.6 | 21.4 | 30.6 | 31.5% | 16.7% | 11.0% | 9.6% | 2.3 |
 HLIO | $2B | 48.1 | 18.2 | 22.3 | 32.3% | 7.9% | 5.4% | 4.4% | 0.9 |
| Industrials Median | — | 25.9 | 13.9 | 20.6 | 32.8% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonCMI — Frequently Asked Questions
Quick answers to the most common questions about buying CMI stock.
What is Cummins Inc.'s P/E ratio?
Cummins Inc.'s current P/E ratio is 34.9x. The historical average is 22.8x. This places it at the 89th percentile of its historical range.
What is Cummins Inc.'s EV/EBITDA?
Cummins Inc.'s current EV/EBITDA is 21.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.7x.
What is Cummins Inc.'s ROE?
Cummins Inc.'s return on equity (ROE) is 23.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.0%.
Is CMI stock overvalued?
Based on historical data, Cummins Inc. is trading at a P/E of 34.9x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Cummins Inc.'s dividend yield?
Cummins Inc.'s current dividend yield is 1.06% with a payout ratio of 37.1%.
What are Cummins Inc.'s profit margins?
Cummins Inc. has 25.3% gross margin and 11.5% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Cummins Inc. have?
Cummins Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.