Industrials › Specialty Industrial Machinery

Cummins Inc. (CMI) Stock Overview

Market Cap: $90.90B

Cummins Inc. offers various power solutions worldwide. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera.

May 1, 2026$657.44

1Y +123.0%

Rewards

★Free cash flow has grown at a 31.6% CAGR over the past 4 years, demonstrating strong earnings power growth.
★Each dollar of retained earnings has created $1.68 of earning power — management is creating shareholder value.
★PEG ratio of 0.77 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.

Risks

⚠FCF yield of 2.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠Trailing P/E of 32.1x is 29% above the historical average of 24.8x — the stock trades at a premium to its own history.
⚠6 insider sales totaling $19.8M with no purchases in the past 3 months — insiders are reducing their exposure.

CMI Key Valuation Metrics

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Free Cash Flow

$2.39B

FCF Yield

2.62%

Trailing P/E

32.05

Forward P/E

20.83

ROIC

13.49%

ROE

21.20%

Gross Margin

25.76%

PEG Ratio

0.77

Debt / Equity

0.61

Interest Coverage

N/A

Net Debt / EBITDA

0.87

Dividend Yield

1.19%

CMI Historical Fundamentals

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Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

CMI $1 Retained Earnings Test

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Market Value

$7.92

created per $1 retained

Exceptional Value Creator

Earning Power

$1.68

created per $1 retained

Value Creator

Σ Retained

$4.58B

Δ Market Cap

+$36.28B

Δ Earning Power

+$7.69B

Buffett's "$1 Test": For every $1 retained, how much value did management create?
Market Value = market's verdict (mood-sensitive) · Earning Power = owner earnings / discount rate (mood-independent)

CMI Discounted Cash Flow (DCF) Analysis

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21.4% Margin of Safety

Price is 21.4% below estimated fair value

Current Price: $657.44

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $836.21

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Parameter	Min (Bear)Value	BaseValue	Max (Bull)Value
Initial Cash Flow
Growth Rate (Yr 1-5)	%	%	%
Growth Rate (Yr 6-10)	%	%	%
Terminal Growth Rate	%	%	%
Discount Rate	%	%	%
	Bear Case $467.47 Implied EV: $69.14B	Base Case $836.21 Implied EV: $120.12B	Bull Case $1261.75 Implied EV: $178.95B

Reverse DCF — Market-Implied Growth

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What growth rate is the market pricing in at $657?

+14.7%

Market-Implied Owner Earnings Growth

Standard FCF implies +17.1%

The market implies +14.7% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +17.1%, reflecting heavy growth investment.

CMI Economic Moat Score

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55/100

Narrow Moat

70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving revenue predictability would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

CMI Forensic Accounting

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-2.51

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

CMI Management & Board

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Ms. Jennifer W. Rumsey

CEO & Chairman of the Board · Age 51

$8.62M

total pay

Mr. Mark A. Smith

CFO & VP · Age 57

$3.22M

total pay

Ms. Bonnie Jean Fetch

Executive VP & President of Operations · Age 54

$1.50M

total pay

Ms. Jennifer Mary Bush

VP & President of Power Systems Business · Age 51

$1.90M

total pay

Ms. Amy Rochelle Davis

VP & President of Accelera by Cummins and Components · Age 55

$1.45M

total pay

Mr. Jonathan Wood

VP & Chief Technical Officer · Age 54

Hon. Nicole Y. Lamb-Hale

VP, Chief Administrative Officer & Corporate Secretary · Age 58

Mr. Nicholas J. Arens

Executive Director of Investor Relations and Business Analysis & Planning

Mr. John Gaidoo

VP & Chief Legal Officer · Age 49

Mr. Marvin Boakye

VP & Chief Human Resources Officer · Age 51

$2.80M

total pay

CMI Ownership

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Insiders 0.3%Institutions 87.9%Retail & Other 11.8%

No. of Institutional Holders2,422

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

CMI Insider Buying Activity

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Buys (3M)

Buys (12M)

Total value (12M): $332,080

STONE JOHN H

Director

$332,080

@ $332.08 · 2025-05-16

WILTROUT JEFFREY T

Officer

$80,401

@ $285.11 · 2024-05-24

BOAKYE MARVIN

Officer

$499,133

@ $286.04 · 2024-05-20

Open market purchases · includes direct & indirect ownership · excludes option exercises

CMI Insider Selling Activity

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Sells (3M)

Sells (12M)

Total value (12M): $46.04M

DAVIS AMY ROCHELLE

Officer

$2.28M

@ $561.34 · 2026-03-03

JACKSON DONALD G

Officer

$2.32M

@ $465.64 · 2026-02-24

NEWSOME EARL JR.

Chief Technology Officer

$758,776

@ $583.67 · 2026-02-23

DAVIS AMY ROCHELLE

Officer

$1.09M

@ $586.64 · 2026-02-23

MILLER WILLIAM I

Director

$10.81M

@ $597.10 · 2026-02-11

BUSH JENNIFER MARY

Officer

$2.50M

@ $584.93 · 2026-02-10

MERRITT BRETT MICHAEL

Officer

$709,514

@ $489.32 · 2025-11-25

RUMSEY JENNIFER W.

Chief Executive Officer

$2.17M

@ $473.89 · 2025-11-11

SMITH MARK ANDREW

Chief Financial Officer

$6.17M

@ $470.66 · 2025-11-06

SMITH MARK ANDREW

Chief Financial Officer

$89,819

@ $449.10 · 2025-10-30

SMITH MARK ANDREW

Chief Financial Officer

$3.51M

@ $439.30 · 2025-10-06

SMITH MARK ANDREW

Chief Financial Officer

$3.77M

@ $415.73 · 2025-09-17

ENRIGHT ROBERT J

Officer

$748,210

@ $402.26 · 2025-08-22

DAVIS AMY ROCHELLE

Officer

$2.02M

@ $402.88 · 2025-08-14

SMITH MARK ANDREW

Chief Financial Officer

$5.00M

@ $400.20 · 2025-08-13

BUSH JENNIFER MARY

Officer

$201,826

@ $388.13 · 2025-08-08

PETERS LUTHER EARL

Officer

$1.89M

@ $389.19 · 2025-08-08

SMITH MARK ANDREW

Chief Financial Officer

$4.28M

@ $374.57 · 2025-02-10

BARNER SHARON R.

Officer

$798,403

@ $369.12 · 2024-11-21

BARNER SHARON R.

Officer

$784,071

@ $362.49 · 2024-11-13

JACKSON DONALD G

Officer

$1.78M

@ $356.21 · 2024-11-12

DI LEO ALLEN BRUNO VITO

Director

$1.77M

@ $358.56 · 2024-11-12

BARNER SHARON R.

Officer

$775,052

@ $358.32 · 2024-11-11

SATTERTHWAITE LIVINGSTON LORD

Officer

$7.47M

@ $308.24 · 2024-08-23

BARNER SHARON R.

Officer

$1.98M

@ $304.77 · 2024-08-21

BARNER SHARON R.

Officer

$1.44M

@ $300.35 · 2024-08-15

BARNER SHARON R.

Officer

$708,110

@ $296.28 · 2024-05-10

BARNER SHARON R.

Officer

$1.11M

@ $286.86 · 2024-05-07

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

CMI 🎭 Mr. Market's Mood

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😏Greed(67/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

CMI ⚖️ Buffett Signal

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⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (67)

CMI Investment Checklist & Notes

Learn more →

Do I understand this business?

Does it have a durable competitive advantage (moat)?

Is management honest and competent?

Is management allocating capital rationally?

Is the price reasonable (margin of safety)?

Is this within my circle of competence?

Auto-saved • Last updated: 5/4/2026, 10:26:29 AM

CMI Insider Buying Activity

Learn more →

Buys (3M)

Buys (12M)

Total value (12M): $332,080

STONE JOHN H

Director

$332,080

@ $332.08 · 2025-05-16

WILTROUT JEFFREY T

Officer

$80,401

@ $285.11 · 2024-05-24

BOAKYE MARVIN

Officer

$499,133

@ $286.04 · 2024-05-20

Open market purchases · includes direct & indirect ownership · excludes option exercises

CMI Insider Selling Activity

Learn more →

Sells (3M)

Sells (12M)

Total value (12M): $46.04M

DAVIS AMY ROCHELLE

Officer

$2.28M

@ $561.34 · 2026-03-03

JACKSON DONALD G

Officer

$2.32M

@ $465.64 · 2026-02-24

NEWSOME EARL JR.

Chief Technology Officer

$758,776

@ $583.67 · 2026-02-23

DAVIS AMY ROCHELLE

Officer

$1.09M

@ $586.64 · 2026-02-23

MILLER WILLIAM I

Director

$10.81M

@ $597.10 · 2026-02-11

BUSH JENNIFER MARY

Officer

$2.50M

@ $584.93 · 2026-02-10

MERRITT BRETT MICHAEL

Officer

$709,514

@ $489.32 · 2025-11-25

RUMSEY JENNIFER W.

Chief Executive Officer

$2.17M

@ $473.89 · 2025-11-11

SMITH MARK ANDREW

Chief Financial Officer

$6.17M

@ $470.66 · 2025-11-06

SMITH MARK ANDREW

Chief Financial Officer

$89,819

@ $449.10 · 2025-10-30

SMITH MARK ANDREW

Chief Financial Officer

$3.51M

@ $439.30 · 2025-10-06

SMITH MARK ANDREW

Chief Financial Officer

$3.77M

@ $415.73 · 2025-09-17

ENRIGHT ROBERT J

Officer

$748,210

@ $402.26 · 2025-08-22

DAVIS AMY ROCHELLE

Officer

$2.02M

@ $402.88 · 2025-08-14

SMITH MARK ANDREW

Chief Financial Officer

$5.00M

@ $400.20 · 2025-08-13

BUSH JENNIFER MARY

Officer

$201,826

@ $388.13 · 2025-08-08

PETERS LUTHER EARL

Officer

$1.89M

@ $389.19 · 2025-08-08

SMITH MARK ANDREW

Chief Financial Officer

$4.28M

@ $374.57 · 2025-02-10

BARNER SHARON R.

Officer

$798,403

@ $369.12 · 2024-11-21

BARNER SHARON R.

Officer

$784,071

@ $362.49 · 2024-11-13

JACKSON DONALD G

Officer

$1.78M

@ $356.21 · 2024-11-12

DI LEO ALLEN BRUNO VITO

Director

$1.77M

@ $358.56 · 2024-11-12

BARNER SHARON R.

Officer

$775,052

@ $358.32 · 2024-11-11

SATTERTHWAITE LIVINGSTON LORD

Officer

$7.47M

@ $308.24 · 2024-08-23

BARNER SHARON R.

Officer

$1.98M

@ $304.77 · 2024-08-21

BARNER SHARON R.

Officer

$1.44M

@ $300.35 · 2024-08-15

BARNER SHARON R.

Officer

$708,110

@ $296.28 · 2024-05-10

BARNER SHARON R.

Officer

$1.11M

@ $286.86 · 2024-05-07

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

CMI Investment Checklist & Notes

Learn more →

Do I understand this business?

Does it have a durable competitive advantage (moat)?

Is management honest and competent?

Is management allocating capital rationally?

Is the price reasonable (margin of safety)?

Is this within my circle of competence?

Auto-saved • Last updated: 5/4/2026, 10:26:29 AM

Cummins Inc. (CMI) Stock Overview

Rewards

Risks

CMI Key Valuation Metrics

CMI Historical Fundamentals

CMI $1 Retained Earnings Test

CMI Discounted Cash Flow (DCF) Analysis

Reverse DCF — Market-Implied Growth

CMI Economic Moat Score

CMI Forensic Accounting

M-Score Trend

CMI Management & Board

CMI Ownership

CMI Insider Buying Activity

CMI Insider Selling Activity

CMI 🎭 Mr. Market's Mood

CMI ⚖️ Buffett Signal

Compare CMI

CMI Investment Checklist & Notes

CMI Insider Buying Activity

CMI Insider Selling Activity

CMI Investment Checklist & Notes