CMI
IndustrialsCummins Inc. · Industrial - Machinery · $88B
What is Cummins Inc.?
Cummins Inc. is a global industrial powerhouse headquartered in Columbus, Indiana, best known for its diesel and natural gas engines that power trucks, buses, construction equipment, and more. The company also develops next-generation electric and hydrogen-based powertrain solutions.
Cummins generates revenue across five business segments: Engine, Distribution, Components, Power Systems, and New Power. The Engine segment supplies heavy and medium-duty powertrains to truck makers and industrial customers worldwide. Distribution handles aftermarket parts and field services, creating a recurring revenue stream. Components covers filtration, turbochargers, and emission systems, while Power Systems addresses high-horsepower and standby generation needs. New Power is the company's forward-looking segment focused on electrified and hydrogen fuel-cell drivetrains.
Cummins was founded in 1947 and has grown into one of the most recognized names in commercial engine manufacturing.
- Diesel and natural gas engines for trucks, buses, and off-highway equipment
- Electric and hydrogen fuel-cell powertrain systems
- Filtration, turbochargers, and emission control components
- Standby and prime power generators under Stamford and AVK brands
- Aftermarket parts, remanufacturing, and field service programs
Is CMI a Good Stock to Buy?
UQS Score rates CMI as Good overall, reflecting a balanced industrial business with meaningful strengths and some areas to watch.
The Quality and Risk pillars both register as Good, suggesting Cummins maintains sound financial practices and a manageable risk profile relative to its industrial peers. Valuation also scores as Good, meaning the stock does not appear significantly stretched compared to sector norms.
The Moat and Growth pillars land at Neutral, indicating that while Cummins holds a respected market position, competitive differentiation and near-term growth momentum are not standout features of the current profile.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does CMI pay dividends?
Yes — Cummins Inc. pays a dividend.
Cummins pays a regular dividend, making it a consideration for income-oriented investors within the industrials sector. The company's long operating history and diversified revenue streams — spanning engines, components, and aftermarket services — support its ability to sustain dividend payments. Investors seeking dividend context relative to sector peers can access the complete yield and payout analysis through the UQS Pro view.
When does CMI report earnings?
Cummins reports earnings on a quarterly cadence, consistent with standard practice for US-listed large-cap industrials.
The company's five-segment structure means quarterly results can reflect varied dynamics — engine demand cycles, aftermarket parts volumes, and New Power investment levels all contribute. Watching segment-level trends alongside overall revenue mix offers useful context for interpreting each report.
For the most recent quarter's results and guidance, visit Cummins Inc.'s official investor relations page.
CMI Price History
+178.1% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Cummins Inc.?
Based on Cummins Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
CMI Long-term Outlook
With Growth and Moat both rated Neutral, Cummins's near-term trajectory appears steady rather than accelerating. The company's exposure to long-haul trucking cycles and construction activity means demand can fluctuate with broader economic conditions. However, the Good Risk rating suggests the business is positioned to navigate downturns without excessive financial strain. The New Power segment represents a longer-horizon growth option as commercial fleets gradually electrify.
Growth drivers
- Expanding aftermarket parts and service revenue from a large installed engine base
- New Power segment growth as fleet electrification and hydrogen adoption progress
- Global infrastructure and construction activity supporting engine and power systems demand
Key risks
- Cyclical exposure to heavy-duty trucking and construction end markets
- Execution risk in scaling New Power amid competitive and regulatory uncertainty
- Input cost and supply chain variability affecting Components and Engine segment margins
CMI vs Peers
Cummins competes across the broader industrials landscape against diversified manufacturers with overlapping end markets.
Emerson focuses heavily on automation and process control software, giving it a more technology-oriented revenue mix compared to Cummins's engine-centric model.
Illinois Tool Works operates a highly decentralized portfolio of niche industrial businesses, with a business model built around pricing power in specialized segments rather than large-scale engine manufacturing.
Howmet concentrates on engineered components for aerospace and defense, making its demand drivers more tied to aviation cycles than the commercial vehicle and power markets Cummins serves.
Frequently Asked Questions
What does Cummins do?
Cummins designs, manufactures, and services diesel and natural gas engines, along with electric and hydrogen powertrains, filtration systems, turbochargers, and power generation equipment. It serves markets including heavy trucking, construction, mining, marine, rail, and defense through five operating segments.
Does CMI pay dividends?
Yes, Cummins pays a regular dividend. The company's diversified industrial revenue base — spanning engine sales, aftermarket services, and components — supports ongoing dividend distributions. Income-focused investors can review yield details and payout history through the UQS Pro dashboard.
When does CMI report earnings?
Cummins reports on a quarterly cadence, as is standard for US-listed large-cap industrials. Exact upcoming dates are not covered by our data source, so check Cummins's investor relations page for the current earnings calendar.
Is CMI a good stock to buy?
UQS Score rates CMI as Good overall. Quality and Risk score well, and Valuation appears reasonable relative to sector peers. Growth and Moat are Neutral, meaning the stock suits investors prioritizing stability over high-velocity expansion. The full pillar breakdown is available to Pro members.
Is CMI overvalued?
The UQS Valuation pillar for CMI is rated Good, suggesting the stock is not significantly overpriced relative to its industrial peers at the time of scoring. Valuation can shift with earnings cycles and market conditions, so reviewing the live score is recommended.
How does CMI compare to its competitors?
Compared to peers like Emerson Electric, Illinois Tool Works, and Howmet Aerospace, Cummins is more concentrated in engine and powertrain technology. Its aftermarket services business provides recurring revenue that some pure-manufacturing peers lack. UQS Pro shows side-by-side pillar comparisons across these names.
What is CMI's market cap bracket?
Cummins is classified as a large-cap company, placing it among the more established and widely followed names in the industrials sector. Large-cap status generally implies greater liquidity and broader institutional ownership.
Who founded Cummins?
Cummins was founded in 1947. The company's founding history and early leadership are well documented in publicly available sources, including the company's own corporate history pages.
Is CMI a long-term quality stock?
As a long-term quality indicator, CMI's Good UQS Score reflects a business with sound financial practices and manageable risk. The Neutral Growth and Moat ratings suggest investors should weigh the company's transition toward electrification and its ability to defend market share over time.
What is the main competitive advantage of Cummins?
Cummins benefits from a large global installed base of engines, which drives recurring aftermarket parts and service revenue. Its brand recognition in commercial powertrains and growing investment in alternative energy systems position it across both legacy and emerging segments of the market.
What sector does CMI belong to?
Cummins is classified in the Industrials sector. Within that sector, it sits at the intersection of engine manufacturing, power systems, and emerging clean-energy drivetrain technology, giving it exposure to both traditional and next-generation industrial demand.
Is CMI a growth stock or value stock?
Based on UQS pillar labels, CMI leans toward value characteristics — the Valuation pillar is Good while Growth is Neutral. This profile may appeal more to investors seeking reasonable pricing and financial stability than those targeting high-growth momentum names.
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Pro Analysis
CMI — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 55.9 | 62.0 | 44.0 | 55.4 | 64.8 | 57.5 | +0.2 |
| May 21, 2026 | 55.7 | 62.0 | 44.0 | 55.4 | 64.8 | 55.9 | -0.1 |
| May 20, 2026 | 55.8 | 62.0 | 44.0 | 55.4 | 64.8 | 56.5 | +0.3 |
| May 19, 2026 | 55.5 | 62.0 | 44.0 | 54.8 | 64.8 | 55.5 | +0.1 |
| May 18, 2026 | 55.4 | 62.0 | 44.0 | 54.8 | 64.8 | 54.5 | +0.3 |
| May 16, 2026 | 55.1 | 62.0 | 44.0 | 53.9 | 64.8 | 54.4 | +0.1 |
| May 15, 2026 | 55.0 | 62.0 | 44.0 | 53.9 | 64.8 | 53.4 | -0.1 |
| May 14, 2026 | 55.1 | 62.0 | 44.0 | 53.9 | 64.8 | 53.7 | 0.0 |
| May 13, 2026 | 55.1 | 62.0 | 44.0 | 53.7 | 64.8 | 53.9 | 0.0 |
| May 12, 2026 | 55.1 | 62.0 | 44.0 | 53.7 | 64.8 | 54.0 | 0.0 |
CMI — Pillar Breakdown
Quality
— 62.0/100 (25%)Cummins Inc. shows solid profitability with healthy returns on capital and reasonable margins.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 55.4/100 (20%)Cummins Inc. demonstrates healthy growth trends across revenue and earnings.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 64.8/100 (15%)Cummins Inc. maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 57.7/100 (15%)Cummins Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 44/100 (25%)Cummins Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CMI.
Score Composition
Financial Data
More Stock Analysis
How is the CMI UQS Score Calculated?
The UQS (Unified Quality Score) for Cummins Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Cummins Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Cummins Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.