Should I Buy CMI Stock in 2026?

Data-driven analysis and honest assessment for Cummins Inc

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $562.18P/E: 28.7

Decision Score

4.6/10

Weak

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)5/10

Elevated P/E of 28.7

Growth (20%)3/10

Declining -0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)6/10

Decent FCF yield of 4.8%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$562.18

P/E Ratio

28.65

Revenue Growth

-0.0%

Profit Margin

0.1%

Market Cap

$76.2B

Dividend Yield

0.01%

How CMI Compares to Competitors

Understanding how CMI stacks up against peers helps inform your investment decision.

How CMI Compares to Peers

Upcoming Events for CMI

+5 Reasons TO Buy CMI

Limited data available to identify compelling buy reasons. Consider this a yellow flag.

-5 Reasons NOT to Buy CMI

1. Thin profit margins of 0.1%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. Revenue declining 0%

medium risk

Shrinking revenue suggests loss of market share or weakening demand. Turnarounds are difficult.

3. Low gross margins of 26%

medium risk

Margins below 30% indicate commodity-like pricing and input cost vulnerability.

4. High PEG ratio of 2.3

medium risk

PEG above 2 suggests expensive relative to growth rate.

Who Should Buy CMI?

Investment Profile

Risk Level

Medium

Recommended Holding Period

3-5 years

Best For:

    Not Suitable For:

    • Growth Investors

      Limited -0% growth may disappoint

    • Income-Focused Retirees

      Low 0.0% yield

    Consider These Alternatives

    If you're interested in CMI, compare these Industrials peers:

    Pro tip: Compare CMI directly with competitors using our comparison tool to see which stock better fits your criteria.

    Get the Full Picture

    Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for CMI

    Frequently Asked Questions

    What is CMI stock price today?

    CMI (Cummins Inc) stock is trading at $562.18 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

    Is CMI stock going up or down today?

    CMI stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

    Should I buy CMI stock now?

    The decision to buy CMI depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

    Is CMI a buy, hold, or sell right now?

    Our AI-powered analysis provides buy/hold/sell recommendations for CMI based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

    Is CMI stock overvalued or undervalued?

    CMI currently trades at a P/E ratio of 28.65, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if CMI is fairly priced.

    What is CMI's P/E ratio?

    CMI has a price-to-earnings (P/E) ratio of 28.65, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

    What is CMI's market cap?

    CMI (Cummins Inc) has a market capitalization of $76.21 billion, making it a mid-cap stock.

    What is CMI's price to book ratio?

    CMI trades at a price-to-book (P/B) ratio of 6.32, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

    Similar Investment Decisions

    Explore investment analyses for stocks similar to Cummins Inc

    Explore Categories

    Disclaimer

    This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.