Is the business good?
How good a business is CMI?
Cummins earns 19% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
19%
Return on invested capital · cost of capital 9.0% · 10 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Specialty Industrial Machinery median 15% · 12 months to Q2 2026
- Cash conversion
- 1.19×
Cash conversion · 0.54× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 11% |
| FY2022 | 10% |
| FY2023 | 5.2% |
| FY2024 | 11% |
| FY2025 | 12% |
Details›
- Gross margin12 months to Q2 2026
- 25%
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 8.2%
- Free cash flow margin
- 9.7%
- R&D as % of revenue
- 4.1%
- Revenue, trailing twelve months
- $34.7B
- Free cash flow, trailing twelve months
- $3.37B
- Net income, trailing twelve months
- $2.83B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 19%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Industrial Machinery
Ranks #21 of 44 by Smart Score