Cummins Inc. (CMI)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business that earns good returns, carries a sound balance sheet, and sells at a sensible price. Cummins shows parts of that profile. In fiscal Q2 2026, the quarter ended 2026-06-30, filed revenue was $9.5 billion, net income $968.0 million, and diluted EPS $6.73; against fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $8.6 billion, net income $928.0 million, and EPS $6.43. That is decent top-line progress, though profit growth was much slower. The five-year record is characterized by FairStock as a Lynch STALWART, with 10.3% annual profit growth and 11.2% revenue growth. Financial health looks solid: FairStock's Piotroski F-score is 8/9, Altman Z-score 3.53, ROE 21.11%, and trailing FCF $3.4 billion, a 4.7% FCF yield. But capital efficiency is mixed, with ROCE only 7.00%, and debt/equity is 0.60. More important for a Graham-style buyer, the price at the 2026-10-26 close is high: FairStock's P/E 26.65, P/B 5.60, PEG 5.60, EV/EBITDA 14.43, Graham Number $202.81 versus the $522.13 price, and a -155.12% margin of safety. The FairStock score of 52/100 and the decline in FY2025, the year ended 2025-12-31, net income to $3.0 billion from $4.1 billion in FY2024, the year ended 2024-12-31, suggest I should demand a larger discount. Cummins is a decent industrial franchise, but the current quote already assumes a lot.

In plain English: Cummins makes engines, power systems, and related parts for trucks, equipment, and power generation. The business looks financially solid and profitable, but growth has been uneven. At the recent close, the stock price looks high compared with the company's earnings and the value shown by its numbers.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer