CluenexCummins CMI
Cummins scores average on business quality (5.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Cummins does
Cummins manufactures diesel and natural gas engines, electric power systems, and related components, selling directly to global commercial vehicle manufacturers and industrial operators.
- What it does best
Cummins dominates heavy-duty commercial engine manufacturing through deep integration with global truck fleets, yielding a gross margin of 25.7% that outpaces peer PCAR at 20.0% but trails CAT at 34.7%.
- The main risk
Cyclical downturns in commercial vehicle demand threaten top-line revenue, which contracted by 1.3% in the latest annual period as heavy machinery purchasing slowed.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at 9.7% with a net margin of 7.8%. Profitability faces pressure from rising input costs, meaning margin expansion lags behind scale improvements.
Deep customer switching costs lock global equipment manufacturers into proprietary engine designs. A gross margin sector percentile of 24 shows manufacturing advantages are modest.
Revenue growth is fading, registering a 1.3% decline over the latest period following years of flat performance near $34B across the historical annual summary.
Debt-to-equity sits at 0.6x alongside an interest coverage of 10.5x, leaving interest costs manageable. Free cash flow surged to $3.4B. The balance sheet is getting stronger.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $399K outside pre-planned sales.
Our sealed record on CMI
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Cummins scores average on the Cluenex quality check (5.2 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $399K outside pre-planned sales.
Nov 5, 2026, before the open.
See CMI today
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Cite this page: Cluenex, “Cummins (CMI)”, https://cluenex.com/stocks/cmi/, data as of Oct 10, 2026.