Cummins Inc.CMI

Industrials
Neutral

ASignal's systematic analysis rates CMI as Neutral. Cummins Inc. has a market cap of $87.51B, a P/E of 32.89, a 7.9% net margin, and 2.7% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Aug 1, 2026

The case on CMI

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • Return on equity of 21.99% indicates strong capital efficiency
  • Forward P/E of 18.58x suggests valuation improvement relative to current P/E
  • Positive free cash flow of $1.69B supports financial flexibility
  • Current ratio of 1.71x indicates adequate short-term liquidity
VS
Bear case
  • RSI near neutral but declining momentum (40.65) with negative price momentum
  • MACD below signal line and negative histogram indicates bearish trend strength
  • Earnings growth declining YoY by 21%
  • High dividend yield of 139% likely reflects price decline or unsustainable payout
  • Debt-to-equity ratio of 0.62x is moderate but elevated for sector
  • Revenue growth of 2.7% is below high-growth threshold

Key facts

Sector
Industrials
Market cap
$87.51B
P/E ratio
32.89
Gross margin
25.9%
Net margin
7.9%
Rev growth YoY
2.7%
Price (Aug 1, 2026)
$634.2

Peers

Clustered with CMI by analysis-profile similarity.

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ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes CMI

Most investors never get a second opinion, let alone several. ASignal runs CMI past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

Cummins Inc. (CMI) Stock Analysis - ASignal rates it Neutral