Aureus
BGood

Cummins Inc.(CMI)

B

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin7.1%Free Cash Flow / Revenue
Cash Conversion127.4%Operating CF / Net Income
Free Cash Flow$2.4B
Revenue$33.7B
Net Cash-$5.3BNet debt position
Debt / FCF3.4xElevated debt burden
Current Ratio1.76Adequate short-term liquidity
YoY FCF Growth+12.2%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
+0.5Modest YoY FCF growth (12.2% YoY)
→
FinalB

Analysis Summary

Strengths

  • Excellent cash conversion (127%)
  • FCF trend is improving

Concerns

  • Low FCF margin (7.1%)
  • Net debt position ($5.3B)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin7.1%
Net Margin8.4%
Operating CF Margin10.8%
CapEx Ratio3.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$5.3BNet debt position
Debt / FCF3.4xElevated debt burden
Current Ratio1.76Strong liquidity
Debt / Equity0.66Low leverage

Quarterly FCF Trend

+12.2% YoYImproving (+12.2%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameCummins Inc.
SectorIndustrials
Free Cash Flow$2.4B
Revenue$33.7B
Net Income$2.8B
Operating Cash Flow$3.6B
Capital Expenditure$1.2B
FCF Margin7.1%
Cash Conversion Rate127.4%
Net Margin8.4%
Total Debt$8.1B
Total Cash$2.8B
Net Cash-$5.3B
Current Ratio1.76
Debt / Equity0.66
Debt / FCF3.4x
YoY FCF Growth+12.2%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeB
Data SourceYahoo Finance

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