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Cummins Inc (CMI)

Upturn stock ratingUpturn stock rating
$401.92
Last Close (24-hour delay)
Profit since last BUY22.06%
upturn advisory
Strong Buy
BUY since 74 days
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Upturn Advisory Summary

08/28/2025: CMI (3-star) is a STRONG-BUY. BUY since 74 days. Profits (22.06%). Updated daily EoD!

Upturn Star Rating

rating

Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Number of Analysts

rating

24 Analysts rated it

Well-followed company, solid analyst reports, reliable data for confident investing.

1 Year Target Price $410.06

1 Year Target Price $410.06

Analysts Price Target For last 52 week
$410.06 Target price
52w Low $257.24
Current$401.92
52w High $406.31

Analysis of Past Performance

Type Stock
Historic Profit 63.22%
Avg. Invested days 66
Today’s Advisory Strong Buy
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 5.0
Stock Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 08/28/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 55.38B USD
Price to earnings Ratio 18.83
1Y Target Price 410.06
Price to earnings Ratio 18.83
1Y Target Price 410.06
Volume (30-day avg) 24
Beta 1.01
52 Weeks Range 257.24 - 406.31
Updated Date 08/29/2025
52 Weeks Range 257.24 - 406.31
Updated Date 08/29/2025
Dividends yield (FY) 1.81%
Basic EPS (TTM) 21.34

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-07-30
When Before Market
Estimate 5.27
Actual 6.43

Profitability

Profit Margin 8.72%
Operating Margin (TTM) 13.02%

Management Effectiveness

Return on Assets (TTM) 7.89%
Return on Equity (TTM) 26.15%

Valuation

Trailing PE 18.83
Forward PE 18.38
Enterprise Value 60988964392
Price to Sales(TTM) 1.64
Enterprise Value 60988964392
Price to Sales(TTM) 1.64
Enterprise Value to Revenue 1.81
Enterprise Value to EBITDA 11.15
Shares Outstanding 137786000
Shares Floating 137007547
Shares Outstanding 137786000
Shares Floating 137007547
Percent Insiders 0.33
Percent Institutions 86.81

ai summary icon Upturn AI SWOT

Cummins Inc

stock logo

Company Overview

overview logo History and Background

Cummins Inc. was founded in 1919 by Clessie Cummins and William G. Irwin. Initially focused on developing diesel engines, the company has grown into a global power leader, innovating across a broad portfolio of power solutions.

business area logo Core Business Areas

  • Engine Segment: Designs and manufactures diesel, natural gas, electric and hybrid powertrains and powertrain-related components and subsystems.
  • Distribution Segment: Distributes engines, power generation products, parts, and service through a global network.
  • Power Systems Segment: Supplies power generation systems, components and services, including high-horsepower engines and generators.
  • Accelera by Cummins: Develops zero-emissions technologies, including hydrogen fuel cells and electrolyzers.

leadership logo Leadership and Structure

Jennifer Rumsey is the Chair and CEO. The company operates with a segment-based structure, with corporate functions providing centralized support.

Top Products and Market Share

overview logo Key Offerings

  • Diesel Engines: Cummins produces a wide range of diesel engines for various applications, including on-highway trucks, construction equipment, and marine vessels. Their market share varies by engine size and application but is generally considered a market leader in medium and heavy-duty diesel engines. Competitors include Caterpillar (CAT), Volvo (VOLVY), and Daimler Truck (DTG.DE).
  • Power Generation Systems: Cummins provides generators and power systems for commercial, industrial, and residential use. They have a significant market share in standby and prime power generation. Competitors include Generac (GNRC), Kohler, and Caterpillar (CAT).
  • Filtration Products: Cummins Filtration, under the Fleetguard brand, provides filtration products for engines and industrial applications. Competitors include Parker Hannifin (PH), Donaldson Company (DCI), and Mann+Hummel.

Market Dynamics

industry overview logo Industry Overview

The engine and power generation industry is currently undergoing a significant shift towards electrification and alternative fuels, driven by environmental concerns and regulatory changes. There is high demand in segments such as data centers, construction and power grids.

Positioning

Cummins is positioned as a global leader in diesel and natural gas engines and is actively investing in electric and hydrogen technologies to maintain its leadership in the evolving power solutions market. It has high brand recognition and established distribution network. They are well placed to transition to greener fuels.

Total Addressable Market (TAM)

The TAM for power solutions (including traditional and alternative) is estimated to be hundreds of billions of USD annually. Cummins is well positioned to capture significant market share as the industry transitions to cleaner energy.

Upturn SWOT Analysis

Strengths

  • Strong brand recognition
  • Global distribution network
  • Diversified product portfolio
  • Innovation in both traditional and alternative power solutions
  • Strong financial performance

Weaknesses

  • Reliance on diesel engine market
  • Capital intensive manufacturing
  • Exposure to cyclical industries
  • Complexity of transitioning to new technologies

Opportunities

  • Growth in electric and hydrogen power solutions
  • Expansion into emerging markets
  • Increased demand for power generation in data centers
  • Government incentives for clean energy technologies
  • Acquisitions of new technology companies.

Threats

  • Stringent emission regulations
  • Competition from new entrants in electric power
  • Fluctuations in commodity prices
  • Economic downturns
  • Supply chain disruptions

Competitors and Market Share

competitor logo Key Competitors

  • CAT
  • GNRC
  • DE

Competitive Landscape

Cummins competes with a mix of established players and new entrants. Its strengths lie in its brand recognition, global distribution network, and diversified product portfolio. However, it faces challenges from competitors investing heavily in electric power and from new entrants with innovative technologies.

Major Acquisitions

Meritor

  • Year: 2022
  • Acquisition Price (USD millions): 3700
  • Strategic Rationale: The acquisition of Meritor accelerates Cumminsu2019 efforts to offer decarbonized powertrain solutions. Meritor brought expertise in axle and brake technology.

Growth Trajectory and Initiatives

Historical Growth: Cummins has experienced steady growth in revenue and earnings over the past decade, driven by expansion into new markets and product innovation.

Future Projections: Analysts project continued growth for Cummins, fueled by the demand for both traditional and alternative power solutions.

Recent Initiatives: Recent strategic initiatives include investments in electric and hydrogen technologies, acquisitions of companies in related industries, and partnerships to expand its global reach.

Summary

Cummins Inc. is a well-established company with a long history in the engine and power generation industries. Its strong brand recognition, global distribution network, and diversified product portfolio provide a solid foundation for continued growth. However, the company faces challenges from the transition to electric power and increasing competition. Cummins' success will depend on its ability to innovate and adapt to the changing market landscape.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Cummins Inc. Investor Relations
  • Company financial reports (10-K, 10-Q)
  • Industry reports
  • Analyst estimates

Disclaimers:

This analysis is based on publicly available information and is for informational purposes only. It should not be construed as financial advice. Market share estimates are approximate and may vary depending on the source.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Cummins Inc

Exchange NYSE
Headquaters Columbus, IN, United States
IPO Launch date 1984-12-18
CEO & Chairman of the Board Ms. Jennifer W. Rumsey
Sector Industrials
Industry Specialty Industrial Machinery
Full time employees 69600
Full time employees 69600

Cummins Inc. offers various power solutions worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; truck, trailer, on- and off-highway, and other products. It also provides aftertreatment technology and solutions comprising custom engineering systems and integrated controls, oxidation catalysts, particulate filters, and selective catalytic reduction systems, as well as engineered components, including dosers; turbochargers, fuel systems, and valvetrain technologies; electronic control modules, sensors, and supporting software; and automated manual transmissions, dual-clutch transmissions, and automatic transmissions for internal combustion engines. In addition, the company sells and offers support services power generation systems, high-horsepower engines, and heavy-duty and medium-duty engines; offers application engineering services, custom-designed assemblies, and inshop and field-based repair services; and retails and wholesales aftermarket parts. Further, it offers standby and prime power generators, controls, paralleling systems, and transfer switches; turnkey solutions for distributed generation and energy management applications using natural gas, diesel, and newer alternative sustainable fuels; diesel and natural gas high-speed, high-horsepower engines; and A/C generator/alternator products. Additionally, the company provides electrified power systems, including batteries, fuel cells, and electric powertrain technologies, as well as hydrogen production technologies. It 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.