Latest Ratios: P/E Ratio 32.2x · EV/EBITDA 19.4x · ROE 23.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $91.2B | $70.8B | $48.5B | $34.2B | $34.5B | $31.8B | $33.8B | $27.9B | $21.8B | $29.6B | $23.1B |
| Enterprise Value | $96.5B | $76.1B | $54.4B | $39.2B | $40.7B | $33.8B | $35.1B | $29.7B | $22.9B | $30.2B | $23.8B |
| P/E Ratio → | 32.20 | 24.90 | 12.29 | 46.52 | 16.02 | 14.93 | 18.91 | 12.36 | 10.16 | 29.59 | 16.61 |
| P/S Ratio | 2.71 | 2.10 | 1.42 | 1.00 | 1.23 | 1.32 | 1.71 | 1.19 | 0.92 | 1.45 | 1.32 |
| P/B Ratio | 6.83 | 5.28 | 4.29 | 3.45 | 3.37 | 3.39 | 3.76 | 3.30 | 2.63 | 3.62 | 3.23 |
| P/FCF | 38.23 | 29.67 | 173.80 | 12.42 | 32.96 | 21.65 | 15.76 | 11.61 | 13.65 | 17.49 | 17.25 |
| P/OCF | 25.19 | 19.55 | 32.61 | 8.62 | 17.57 | 14.11 | 12.43 | 8.78 | 9.15 | 12.98 | 11.96 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.26 | 1.60 | 1.15 | 1.45 | 1.41 | 1.77 | 1.26 | 0.96 | 1.48 | 1.36 |
| EV / EBITDA | 19.41 | 15.31 | 11.30 | 14.08 | 10.97 | 10.05 | 11.91 | 8.80 | 6.75 | 10.35 | 9.89 |
| EV / EBIT | 24.96 | 17.72 | 10.32 | 19.60 | 13.50 | 11.83 | 14.38 | 10.08 | 8.00 | 12.34 | 11.93 |
| EV / FCF | — | 31.88 | 195.04 | 14.24 | 38.94 | 23.03 | 16.33 | 12.33 | 14.38 | 17.86 | 17.78 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.3% | 25.3% | 24.7% | 24.2% | 23.9% | 23.7% | 24.7% | 25.4% | 24.1% | 25.0% | 25.5% |
| Operating Margin | 11.5% | 11.5% | 11.0% | 5.2% | 10.4% | 11.3% | 11.5% | 11.5% | 11.7% | 11.4% | 10.7% |
| Net Profit Margin | 8.4% | 8.4% | 11.6% | 2.2% | 7.7% | 8.9% | 9.0% | 9.6% | 9.0% | 4.9% | 8.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.0% | 23.0% | 37.2% | 7.3% | 21.9% | 23.2% | 20.5% | 27.0% | 26.1% | 13.0% | 18.7% |
| ROA | 8.7% | 8.7% | 12.4% | 2.4% | 8.0% | 9.2% | 8.4% | 11.6% | 11.5% | 6.0% | 9.2% |
| ROIC | 16.1% | 16.1% | 17.5% | 8.4% | 15.7% | 18.8% | 16.7% | 20.6% | 22.9% | 21.0% | 18.2% |
| ROCE | 17.3% | 17.3% | 19.0% | 9.3% | 16.5% | 16.4% | 15.2% | 20.6% | 22.2% | 20.2% | 17.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.61 | 0.61 | 0.67 | 0.73 | 0.82 | 0.49 | 0.51 | 0.34 | 0.30 | 0.25 | 0.25 |
| Debt / EBITDA | 1.63 | 1.63 | 1.58 | 2.59 | 2.25 | 1.37 | 1.57 | 0.85 | 0.73 | 0.69 | 0.76 |
| Net Debt / Equity | — | 0.39 | 0.52 | 0.51 | 0.61 | 0.21 | 0.14 | 0.21 | 0.14 | 0.08 | 0.10 |
| Net Debt / EBITDA | 1.06 | 1.06 | 1.23 | 1.81 | 1.68 | 0.60 | 0.41 | 0.52 | 0.35 | 0.22 | 0.29 |
| Debt / FCF | — | 2.21 | 21.24 | 1.83 | 5.98 | 1.37 | 0.57 | 0.72 | 0.74 | 0.38 | 0.52 |
| Interest Coverage | 13.05 | 13.05 | 14.25 | 5.34 | 15.17 | 25.78 | 24.38 | 27.00 | 25.15 | 30.20 | 28.97 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.76 | 1.76 | 1.31 | 1.18 | 1.27 | 1.74 | 1.88 | 1.50 | 1.54 | 1.57 | 1.78 |
| Quick Ratio | 1.16 | 1.16 | 0.80 | 0.74 | 0.77 | 1.12 | 1.34 | 0.94 | 0.95 | 1.01 | 1.16 |
| Cash Ratio | 0.38 | 0.38 | 0.20 | 0.21 | 0.23 | 0.45 | 0.61 | 0.23 | 0.24 | 0.28 | 0.32 |
| Asset Turnover | — | 0.99 | 1.08 | 1.06 | 0.93 | 1.01 | 0.88 | 1.19 | 1.25 | 1.13 | 1.17 |
| Inventory Turnover | 4.32 | 4.32 | 4.47 | 4.55 | 3.81 | 4.21 | 4.36 | 5.05 | 4.80 | 4.84 | 4.88 |
| Days Sales Outstanding | — | 63.07 | 55.45 | 59.82 | 67.63 | 60.63 | 70.38 | 56.83 | 59.36 | 64.65 | 63.06 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.2% | 1.5% | 2.0% | 2.7% | 2.5% | 2.5% | 2.3% | 2.7% | 3.3% | 2.4% | 2.9% |
| Payout Ratio | 37.1% | 37.1% | 24.6% | 125.3% | 39.7% | 38.0% | 43.7% | 33.7% | 33.5% | 70.2% | 48.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 4.0% | 8.1% | 2.1% | 6.2% | 6.7% | 5.3% | 8.1% | 9.8% | 3.4% | 6.0% |
| FCF Yield | 2.6% | 3.4% | 0.6% | 8.1% | 3.0% | 4.6% | 6.3% | 8.6% | 7.3% | 5.7% | 5.8% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 1.1% | 4.4% | 1.9% | 4.5% | 5.2% | 1.5% | 3.4% |
| Total Shareholder Yield | 1.2% | 1.5% | 2.0% | 2.7% | 3.6% | 6.9% | 4.2% | 7.3% | 8.5% | 3.9% | 6.3% |
| Shares Outstanding | — | $139M | $139M | $143M | $142M | $146M | $149M | $156M | $163M | $167M | $169M |
Cyclical North American Demand
Based on reported figures, Cummins trades at a P/E of 33.46, which appears elevated relative to historical norms and suggests that investors are pricing in significant growth from the New Power segment despite the current -1.27% YoY revenue contraction observed in recent financial statements.
The forward P/E of 23.61 indicates that the market anticipates a recovery in earnings, yet the PEG ratio of 2.96 implies that this valuation may be stretched if the company fails to accelerate its growth trajectory. Investors should monitor whether the current premium is justified by the long-term potential of zero-emission technologies or if it reflects an over-optimistic assessment of the core engine business's terminal value.
According to recent quarterly data, ROIC has fluctuated significantly, reaching a low of 2.6% in 2025Q4, which highlights the difficulty of maintaining high returns on invested capital while simultaneously funding the capital-intensive transition toward hydrogen and electric powertrain platforms within the New Power segment.
The volatility in ROIC suggests that the company's capital allocation strategy is currently in a transition phase where heavy R&D spending is suppressing returns. Analysts should investigate whether the recent decline in capital efficiency is a temporary byproduct of strategic investment or a structural shift that may impair long-term shareholder value creation.
As reported in financial statements, the cash conversion cycle has remained elevated, peaking at 98 days in 2025Q3, which indicates that Cummins faces ongoing challenges in optimizing its inventory and receivables management amidst the cyclical fluctuations of the heavy-duty machinery and industrial engine manufacturing sector.
The high DIO and DSO figures suggest that the company is carrying significant working capital, which may be a strategic necessity to ensure supply chain reliability for its OEM customers. However, this reliance on working capital creates cash flow sensitivity that warrants further investigation into the company's ability to maintain liquidity during periods of softening demand.
Based on an analysis of the business model, the P/E ratio is frequently misapplied to Cummins because it fails to account for the significant earnings contribution from unconsolidated joint ventures, which are excluded from headline revenue but remain vital to the company's global market footprint.
Investors should prioritize EV/EBITDA or sum-of-the-parts valuations to better capture the value of the Distribution segment and the equity earnings from international JVs. Relying solely on P/E ratios obscures the true earning power of the firm and may lead to an inaccurate assessment of the company's valuation relative to its industrial peers.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying CMI stock.
Cummins Inc.'s current P/E ratio is 32.2x. The historical average is 22.8x. This places it at the 89th percentile of its historical range.
Cummins Inc.'s current EV/EBITDA is 19.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.7x.
Cummins Inc.'s return on equity (ROE) is 23.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.0%.
Based on historical data, Cummins Inc. is trading at a P/E of 32.2x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Cummins Inc.'s current dividend yield is 1.15% with a payout ratio of 37.1%.
Cummins Inc. has 25.3% gross margin and 11.5% operating margin. Operating margin between 10-20% is typical for established companies.
Cummins Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.