A Look At Cummins (CMI) Valuation After Strong Recent Share Price Performance

Simply Wall St.01-05

Cummins (CMI) has been drawing attention after a period of strong recent returns, with the stock up around 20% over the past 3 months and 49% over the past year. See our latest analysis for Cummins. ...

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See our latest analysis for Cummins. ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-cmi/cummins/news/a-look-at-cummins-cmi-valuation-after-strong-recent-share-pr\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Look At Cummins (CMI) Valuation After Strong Recent Share Price Performance</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Look At Cummins (CMI) Valuation After Strong Recent Share Price Performance\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-05 22:16 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/capital-goods/nyse-cmi/cummins/news/a-look-at-cummins-cmi-valuation-after-strong-recent-share-pr><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cummins (CMI) has been drawing attention after a period of strong recent returns, with the stock up around 20% over the past 3 months and 49% over the past year. See our latest analysis for Cummins. ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-cmi/cummins/news/a-look-at-cummins-cmi-valuation-after-strong-recent-share-pr\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4567","symbol_name":"ESG概念","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nyse-cmi/cummins/news/a-look-at-cummins-cmi-valuation-after-strong-recent-share-pr","article_id":"2601338378","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/265253-main-header/1585187634875"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nyse-cmi/cummins/news/a-look-at-cummins-cmi-valuation-after-strong-recent-share-pr","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2601338378","pubTimestamp":1767622598,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Cummins (CMI) has been drawing attention after a period of strong recent returns, with the stock up around 20% over the past 3 months and 49% over the past year.\nSee our latest analysis for Cummins.\nThe recent move in Cummins’ share price to $522.03 sits on top of strong momentum, with a 90 day share price return of 20.24% and a 1 year total shareholder return of 48.72%. The 3 year and 5 year total shareholder returns of 129.49% and 149.04% point to a longer term trend that investors are...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4567":"ESG概念","LU0154245673.USD":"BNP PARIBAS US MID CAP \"C\" (USD) INC","BK4585":"ETF&股票定投概念","BK4588":"碎股","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","CMI":"康明斯","LU0203347892.USD":"SCHRODER ISF QEP GLOBAL ACTIVE VALLUE \"A\" (USD)  INC AV","LU0154245756.USD":"BNP PARIBAS US MID CAP \"C\" (USD) ACC","BK4149":"建筑机械与重型卡车"},"translate_title":"近期股价表现强劲后看看康明斯(CMI)的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CMI":1.5},"content_text":"Cummins (CMI) has been drawing attention after a period of strong recent returns, with the stock up around 20% over the past 3 months and 49% over the past year. See our latest analysis for Cummins. The recent move in Cummins’ share price to $522.03 sits on top of strong momentum, with a 90 day share price return of 20.24% and a 1 year total shareholder return of 48.72%. The 3 year and 5 year total shareholder returns of 129.49% and 149.04% point to a longer term trend that investors are still rewarding. If Cummins has caught your eye, it can be useful to compare it with other industrial names and see how they stack up against auto manufacturers. With Cummins trading at $522.03, sitting close to analyst targets and with an estimated 18% intrinsic discount, the key question is whether the recent strength leaves more potential upside available or whether markets are already fully pricing in future growth. AdvertisementMost Popular Narrative Narrative: 1.8% Undervalued With Cummins last closing at $522.03 against a narrative fair value of about $531.63, the current price sits just under that estimated anchor, setting up a valuation story built on future earnings power and capitalized growth assumptions.  Cummins is experiencing strong and steadily growing demand for power generation equipment, especially from the data center sector, driven by increasing urbanization, digital infrastructure expansion, and the global shift toward cleaner, efficient energy solutions; this diversification is lifting revenue and supporting higher EBITDA margins, offsetting softness in the traditional truck markets.  Read the complete narrative. Curious how a power equipment backlog, higher margins, and a lower future P/E than peers can still point to upside? The key hinges on projected revenue growth, rising profitability, and what multiple investors might pay for those earnings a few years out. The narrative joins all three into one fair value number. Result: Fair Value of $531.63 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still clear pressure points, including a soft North America truck cycle and uncertainty around emissions rules and tariffs that could challenge this upbeat earnings path. Find out about the key risks to this Cummins narrative. Another View: Multiples Paint A Tighter Picture Those narrative and fair value figures suggest room for upside, but the market’s own pricing sends a different message. Cummins trades on a P/E of 27x versus 23.8x for peers and 25.1x for the US Machinery industry, even though the fair ratio sits higher at 34.6x. That gap hints at some valuation risk if sentiment cools, but also leaves room if the market shifts toward that fair ratio. Which side of that trade off do you think is more realistic? See what the numbers say about this price — find out in our valuation breakdown. NYSE:CMI P/E Ratio as at Jan 2026 Build Your Own Cummins Narrative If you see the numbers differently or want to stress test your own assumptions, you can build a custom Cummins narrative in just a few minutes by starting with Do it your way. A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Cummins. Ready to find your next idea? If Cummins is already on your radar, do not stop there. Use the Simply Wall St Screener to uncover fresh ideas that could sharpen your portfolio decisions.  Spot potential mispricings by scanning these 870 undervalued stocks based on cash flows that our models flag as trading below their estimated cash flow value. Tap into cutting edge themes by checking out these 25 AI penny stocks riding the surge in artificial intelligence adoption across multiple industries. Boost your income focus by reviewing these 14 dividend stocks with yields > 3% that combine meaningful yields with stock market exposure.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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