Cummins Inc. cash flow to debt ratio of 44.63% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Cummins Inc.'s free cash flow has increased 755.20% from $279.00M last year to $2.39B, signaling increasing performance

Cummins Inc.'s debt to equity ratio is 0.60, which means that the company's assets are healthy financed, signaling financial stability.

Cummins Inc.'s debt has decreased relative to shareholder equity from 0.74 last year to 0.60 today, signaling strengthened financials

Cummins Inc. has a net debt to EBITDA ratio of 0.83x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Cummins Inc.'s interest coverage ratio of 12.03 indicates that earnings with good margin can cover interest payments on company debt

Cummins Inc.'s profit margin has decreased (32.40%) in the last year from 11.57% to 7.82%, signaling decreasing performance

Cummins Inc.'s short-term assets of $16.93B exceed its short-term liabilities of $9.61B

Cummins Inc.'s return on assets of 7.62% is higher than the 5.00% threshold, indicating efficient asset utilization

Cummins Inc.'s return on equity of 21.89%, is higher than 15.00%, indicating good performance

Cummins Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Cummins Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Cummins Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Cummins Inc. has a free cash flow yield of 2.72%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Cummins Inc.'s yearly earnings has decreased 27.95% since last year from $3.95B to $2.84B, signaling decreasing performance

Cummins Inc.'s yearly revenue has decreased 1.27% since last year from $34.10B to $33.67B, signaling decreasing performance

ROIC 10.95% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Cummins Inc.'s 3-year revenue CAGR of 6.25% is positive, indicating growing revenue over the past 3 years

Cummins Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Cummins Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Cummins Inc. is overvalued relative to its fair value price of 183.30 based on Discounted Cash Flow model

Cummins Inc. has an earnings yield of 3.10%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Cummins Inc. is overvalued relative to its fair value price of 234.70 based on EBITDA multiple model

Cummins Inc. has an EV/EBITDA ratio of 17.07x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Cummins Inc. is overvalued relative to its fair value price of 508.38 based on Earnings Fair Value model

Cummins Inc. has a PEG-ratio over 1 which is considered overvalued

Cummins Inc. has a price-to-book ratio of 6.30x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Cummins Inc. has a price-to-sales ratio of 2.53x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue