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CumminsCMI +2.25%84 Debt-to-EBITDA is 1.25 as of Jun. 2026, which is at its 10-year median of 1.25. GuruFocus rates CMI with a GF Score™ of 84/100 and a GF Value™ of $346.27 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,328 Industrial Products companies, Cummins ranks better than 51.98% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Cummins's Debt-to-EBITDA or its related term are showing as below:
CMI'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.66 Med: 1.25 Max: 2.38
Current: 1.57
During the past 13 years, the highest Debt-to-EBITDA Ratio of Cummins was 2.38. The lowest was 0.66. And the median was 1.25.
CMI's Debt-to-EBITDA is ranked better than 51.98% of 2328
companies
in the Industrial Products industry
Industry Median: 1.71
vs CMI: 1.57
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Cummins Debt-to-EBITDA Related Terms
Cummins Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Cummins's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Cummins's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cummins Debt-to-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Cummins's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Cummins (CMI) has a Debt-to-EBITDA of 1.25 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Cummins. This is near median its historical median of 1.25. Over the past decade, Cummins' Debt-to-EBITDA has ranged from 0.66 to 2.38. According to the industry distribution chart, Cummins ranks #1118 out of 2328 companies in the Industrial Products industry, placing it in the top 48%.
Is Cummins' Debt-to-EBITDA too high?
Cummins' current Debt-to-EBITDA of 1.25 is near median its 10-year median of 1.25. Over the past 10 years, this metric has ranged from a low of 0.66 to a high of 2.38. The Industrial Products industry median Debt-to-EBITDA is 1.71. Cummins' value of 1.25 is 26.9% below this industry median. Based on the distribution chart, Cummins ranks #1118 out of 2328 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Cummins has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins' Debt-to-EBITDA compare to EMR and ITW?
According to the Industrial Products industry distribution chart, Cummins ranks #1118 out of 2328 companies for Debt-to-EBITDA. This puts Cummins in the upper half of its industry. The industry median Debt-to-EBITDA is 1.71. Cummins' value of 1.25 is 26.9% below this benchmark. Historically, Cummins' own Debt-to-EBITDA has ranged from 0.66 to 2.38 over the past decade. While the company's 10-year median is 1.25 vs. the industry median of 1.71, Cummins has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.71, based on 2,328 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins's current Debt-to-EBITDA of 1.25 is 26.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Cummins. For the Industrial Products industry, the median Debt-to-EBITDA is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins's current Debt-to-EBITDA is 1.25, which is near median its own 10-year median of 1.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cummins stock overvalued right now?
Based on GuruFocus' analysis, Cummins (CMI) is currently considered Significantly Overvalued. The stock's GF Value™ is $346.27, compared to a current price of $650.25 — trading 87.8% above its estimated fair value. The current Debt-to-EBITDA is 1.25, which is near median its 10-year median of 1.25 and 26.9% below the Industrial Products industry median of 1.71. Cummins' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Cummins (CMI), the current Debt-to-EBITDA is 1.25 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cummins (CMI) Overvalued in 2026?
Based on GuruFocus' analysis, Cummins stock appears to be overvalued.
The current stock price of $650.25 is trading 87.8% above its estimated GF Value™ of $346.27.
GuruFocus considers Cummins to be Significantly Overvalued.
Key valuation signals for CMI:
Debt-to-EBITDA: 1.25 (near median its 10-year median of 1.25)
GF Value™: $346.27 vs. price of $650.25 (87.8% above fair value)
Industry Position: 26.9% below the Industrial Products median (#1118 of 2328)
No single metric tells the full story. See the CMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of the world. Much of Cummins' foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins' business model is unique as it competes with many of its heavy-duty truck manufacturer customers, which also make their own engines.
84GF Score
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