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Cummins Inc (CMI)


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Upturn Advisory Summary
10/20/2025: CMI (3-star) is a REGULAR-BUY. BUY since 110 days. Simulated Profits (25.74%). Updated daily EoD!
1 Year Target Price $441.27
1 Year Target Price $441.27
5 | Strong Buy |
3 | Buy |
15 | Hold |
0 | Sell |
1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 68.13% | Avg. Invested days 73 | Today’s Advisory Regular Buy |
Upturn Star Rating ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 56.74B USD | Price to earnings Ratio 19.31 | 1Y Target Price 441.27 |
Price to earnings Ratio 19.31 | 1Y Target Price 441.27 | ||
Volume (30-day avg) 24 | Beta 1.04 | 52 Weeks Range 257.24 - 440.51 | Updated Date 10/20/2025 |
52 Weeks Range 257.24 - 440.51 | Updated Date 10/20/2025 | ||
Dividends yield (FY) 1.72% | Basic EPS (TTM) 21.33 |
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 - | When - | Estimate - | Actual - |
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 19.31 | Forward PE 17.95 | Enterprise Value 65214862178 | Price to Sales(TTM) 1.68 |
Enterprise Value 65214862178 | Price to Sales(TTM) 1.68 | ||
Enterprise Value to Revenue 1.93 | Enterprise Value to EBITDA 11.93 | Shares Outstanding 137786038 | Shares Floating 137007547 |
Shares Outstanding 137786038 | Shares Floating 137007547 | ||
Percent Insiders 0.33 | Percent Institutions 87.11 |
Upturn AI SWOT
Cummins Inc

Company Overview
History and Background
Cummins Inc. was founded in 1919 by Clessie Lyle Cummins and William G. Irwin. Initially focused on diesel engine technology, it evolved into a global power leader through innovation and strategic partnerships.
Core Business Areas
- Engine Business: Designs and manufactures diesel and natural gas engines for on-highway and off-highway use, serving various markets including heavy-duty trucks, construction, agriculture, and power generation.
- Distribution Business: Provides parts, service, and aftermarket support for Cummins engines and related products through a global network of distributors and dealers.
- Power Systems Business: Offers power generation systems, components, and services, including generator sets, alternators, and transfer switches for commercial, industrial, and residential applications.
- Components Business: Manufactures components such as turbochargers, filtration products, and aftertreatment systems for engines and other industrial applications. This segment now also includes their Accelera Zero-Emission Technologies.
- Accelera: Focuses on developing and manufacturing zero-emission technologies, including battery electric and fuel cell power systems. This segment supports the transition to sustainable power solutions.
Leadership and Structure
Jennifer Rumsey serves as Chair and CEO. The company is structured with a corporate headquarters and various business units, each led by a president or vice president. The leadership team includes executives responsible for finance, technology, operations, and marketing.
Top Products and Market Share
Key Offerings
- Heavy-Duty Diesel Engines: Cummins is a leading manufacturer of heavy-duty diesel engines for commercial vehicles. Market share varies by region but is estimated to be approximately 30% in North America. Competitors include Daimler Truck (DTRUY), Paccar (PCAR), and Volvo (VOLVY).
- Power Generation Systems: Cummins offers a wide range of power generation systems, including generator sets for standby and prime power applications. Estimated market share is around 15% globally. Competitors include Caterpillar (CAT) and Generac (GNRC).
- Filtration Products: Cummins Filtration (Fleetguard) provides a variety of filtration products, including air, fuel, and oil filters for engines and industrial equipment. Market share is approximately 20%. Competitors include Parker-Hannifin (PH), Donaldson Company (DCI).
Market Dynamics
Industry Overview
The engine and power generation industry is undergoing a significant transformation due to increasing environmental regulations and the shift towards alternative fuels and electrification. Demand for efficient and cleaner power solutions is growing.
Positioning
Cummins Inc. is positioned as a leading provider of power solutions, with a strong focus on innovation and sustainability. Its competitive advantages include a well-established global distribution network, a broad product portfolio, and a reputation for quality and reliability.
Total Addressable Market (TAM)
The total addressable market for engines, power generation, and related components is estimated to be in the hundreds of billions of dollars globally. Cummins Inc. is well-positioned to capture a significant portion of this market, particularly in the transition to new technologies.
Upturn SWOT Analysis
Strengths
- Strong brand reputation
- Global distribution network
- Diverse product portfolio
- Technological expertise
- Strong financial performance
Weaknesses
- Reliance on diesel engine market
- Exposure to cyclical industries
- High capital expenditure requirements
- Supply chain vulnerabilities
Opportunities
- Growth in emerging markets
- Increasing demand for alternative fuel engines
- Expansion into electrification and fuel cell technologies
- Acquisitions and strategic partnerships
- Increased aftermarket services
Threats
- Stringent emission regulations
- Competition from established and emerging players
- Economic downturns
- Disruptive technologies
- Geopolitical risks
Competitors and Market Share
Key Competitors
- CAT
- DE
- MTUAY
Competitive Landscape
Cummins Inc. benefits from its broad product portfolio and global presence. However, it faces competition from other major players in the engine and power generation industries.
Major Acquisitions
Meritor
- Year: 2022
- Acquisition Price (USD millions): 3800
- Strategic Rationale: Acquisition of Meritor to advance its powertrain components business and accelerate growth in electric powertrains.
Growth Trajectory and Initiatives
Historical Growth: Cummins Inc. has experienced consistent growth over the past years, driven by expansion in emerging markets and strategic acquisitions.
Future Projections: Analysts project continued growth for Cummins Inc., supported by increasing demand for power solutions and the company's investments in new technologies.
Recent Initiatives: Recent initiatives include investments in electrification and fuel cell technologies, acquisitions of companies in related industries, and expansion of the company's aftermarket services.
Summary
Cummins Inc. is a strong company with a solid market position and healthy financials. Its global reach and diverse product portfolio are significant advantages. The company should watch out for increasing environmental regulations and the shift toward alternative fuels and electrification which might disrupt future market share. Strategic adaptation is key for continued success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market conditions and company performance may change over time.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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 | Website https://www.cummins.com |
Full time employees 69600 | Website https://www.cummins.com |
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.

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