---
title: Cummins (CMI) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/cmi
ticker: CMI
as_of: 2026-10-17
sector: Industrials
industry: Industrial - Machinery
---
# Cummins (CMI)

Cummins (CMI) closed at $531.33 on Oct 16, 2026, overvalued by 62% vs its model value of $327.89 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $531.33 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $327.89 |
| Price vs model | overvalued by 62% vs model |
| Range of that model | $227.13 – $584.61 |
| Market value | $73.1B |
| P/E (fiscal 2025) | 25.9 |
| Net margin (fiscal 2025) | 8.4% |
| Free cash flow (fiscal 2025) | $2.4B |
| Dividend yield (trailing twelve months) | 1.54% |
| Beta | 1.24 |
| Cost of capital (WACC) | 9.34% |
| Business classification | Cyclical (Revenue declining (~-1% recent), Moderate margins (9% net margin), Pays dividends, Highly cyclical earnings) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.54% |
| Dividends per share, last 12 months | $8.20 |
| Dividends / free cash flow (fiscal 2025) | 44.2% |
| Raised | 20 years in a row |
| Growth over 5 years | 8.3% a year |
| Latest payment | $2.20, ex-date Aug 21, 2026, paid Sep 3, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 19, 2021 | $5.50 |
| To Aug 18, 2022 | $5.92 |
| To Aug 24, 2023 | $6.39 |
| To Aug 23, 2024 | $6.86 |
| To Aug 22, 2025 | $7.46 |
| Trailing twelve months (to Aug 21, 2026) | $8.20 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $327.89 | $227.13 | $584.61 |
| DCF · Perpetuity growth · 10y | cross check | $381.37 | $268.98 | $663.35 |
| DCF · EBITDA exit · 5y | cross check | $960.27 | $760.04 | $1,193.62 |
| DCF · EBITDA exit · 10y | cross check | $927.97 | $690.10 | $1,238.26 |
| P/E · peers | cross check | $893.14 | $808.52 | $1,007.30 |
| P/E · own history | cross check | $407.59 | $361.33 | $784.56 |
| PEG | sanity check | $736.26 | $736.26 | $736.26 |
| EV/EBITDA · peers | cross check | $1,291.75 | $848.42 | $2,130.22 |
| EV/Revenue · peers | cross check | $1,311.74 | $955.36 | $1,478.24 |
| Earnings power value | cross check | $145.33 | $120.84 | $179.19 |
| Dividend discount | cross check | $159.20 | $114.46 | $239.93 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 1 open-market sale ($399,410.3); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Aug 24, 2026 | Newsome Earl | VP - Chief Information Officer | Open-market sell | 698 | $399,410.3 |
| May 19, 2026 | Merritt Brett Michael | V.P & Pres. - Engine Business | Bona fide gift | 218 | $0 |
| May 13, 2026 | Fetch Bonnie J | EVP & President - Operations | Bona fide gift | 155 | $0 |
| May 13, 2026 | Stoner Nathan R | VP - China ABO | Bona fide gift | 600 | $0 |
| May 14, 2026 | JACKSON DONALD G | VP - Treasury & Tax | Open-market sell | 90 | $64,142.6 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Aug 4, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/26172/000002617226000029/cmi-20260630.htm |
| Aug 4, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/26172/000002617226000026/cmi-20260804.htm |
| May 14, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/26172/000002617226000018/cmi-20260512.htm |
| May 12, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/26172/000110465926059377/tm2614262d1_s8.htm |
| May 5, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/26172/000002617226000016/cmi-20260331.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| First Eagle | 2026-06-30 | 536,868 | $382.9M |
| Bridgewater | 2026-06-30 | 21,316 | $15.2M |
| Christopher Bloomstran | 2026-06-30 | 12,972 | $9.3M |
| Mairs & Power | 2026-06-30 | 528 | $376,575 |

4 tracked managers in all.

## About

Cummins Inc. is a global innovator in power solutions, responsible for the design, manufacturing, distribution, and maintenance of a broad array of diesel and natural gas engines, alongside cutting-edge electric and hybrid powertrains, and associated components. Its operations are strategically divided into five segments: Engine, Distribution, Components, Power Systems, and New Power. The company's extensive engine portfolio, available under the Cummins brand and others, powers a vast range of heavy and medium-duty applications, including commercial trucks, buses, recreational vehicles, light-duty automobiles, construction and mining equipment, marine vessels, railway systems, oil and gas operations, defense, and agriculture. Complementing these engines, Cummins provides both new and remanufactured parts and comprehensive servicing. Beyond its core engine offerings, Cummins delivers soph…

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Source: https://sweetvaluelab.com/stocks/cmi (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.