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CumminsCMI -0.74%90 Earnings Yield (Joel Greenblatt) % is 4.02% as of Jun. 2026, which is 50% below its 10-year median of 8.01. GuruFocus rates CMI with a GF Score™ of 90/100 and a GF Value™ of $352.91 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,101 Industrial Products companies, Cummins ranks better than 60.3% on this metric.
Cummins's Enterprise Value for the quarter that ended in Jun. 2026 was $103,604 Mil.
Cummins's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $4,169 Mil. Cummins's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 4.02%.
The historical rank and industry rank for Cummins's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
CMI'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.89 Med: 8.01 Max: 14.65
Current: 4.94
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Cummins was 14.65%. The lowest was 3.89%. And the median was 8.01%.
CMI's Earnings Yield (Joel Greenblatt) % is ranked better than 60.3% of 3101
companies
in the Industrial Products industry
Industry Median: 3.46
vs CMI: 4.94
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Cummins's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 14.28%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Cummins Earnings Yield (Joel Greenblatt) % Related Terms
Cummins Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Cummins's Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Cummins's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Cumminss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Cummins's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,169 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 4.02% mean?
Cummins (CMI) has a Earnings Yield (Joel Greenblatt) % of 4.02% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Cummins and its competitors. This is 50% below median its historical median of 8.01. Over the past decade, Cummins' Earnings Yield (Joel Greenblatt) % has ranged from 3.89 to 14.65. According to the industry distribution chart, Cummins ranks #1231 out of 3101 companies in the Industrial Products industry, placing it in the top 39.7%.
Is Cummins' Earnings Yield (Joel Greenblatt) % too high?
Cummins' current Earnings Yield (Joel Greenblatt) % of 4.02% is 50% below median its 10-year median of 8.01. Over the past 10 years, this metric has ranged from a low of 3.89 to a high of 14.65. The Industrial Products industry median Earnings Yield (Joel Greenblatt) % is 3.46. Cummins' value of 4.02% is 16.2% above this industry median. Based on the distribution chart, Cummins ranks #1231 out of 3101 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Cummins has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins' Earnings Yield (Joel Greenblatt) % compare to EMR and ITW?
According to the Industrial Products industry distribution chart, Cummins ranks #1231 out of 3101 companies for Earnings Yield (Joel Greenblatt) %. This puts Cummins in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 3.46. Cummins' value of 4.02% is 16.2% above this benchmark. Historically, Cummins' own Earnings Yield (Joel Greenblatt) % has ranged from 3.89 to 14.65 over the past decade. While the company's 10-year median is 8.01 vs. the industry median of 3.46, Cummins has consistently been above 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 Earnings Yield (Joel Greenblatt) % for an Industrial Products company?
The median Earnings Yield (Joel Greenblatt) % among Industrial Products companies is 3.46, based on 3,101 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins's current Earnings Yield (Joel Greenblatt) % of 4.02% is 16.2% above 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Cummins and its competitors. For the Industrial Products industry, the median Earnings Yield (Joel Greenblatt) % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins's current Earnings Yield (Joel Greenblatt) % is 4.02%, which is 50% below median its own 10-year median of 8.01. 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 $352.91, compared to a current price of $573.87 — trading 62.6% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 4.02%, which is 50% below median its 10-year median of 8.01 and 16.2% above the Industrial Products industry median of 3.46. Cummins' overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Cummins (CMI), the current Earnings Yield (Joel Greenblatt) % is 4.02% 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 $573.87 is trading 62.6% above its estimated GF Value™ of $352.91.
GuruFocus considers Cummins to be Significantly Overvalued.
Key valuation signals for CMI:
Earnings Yield (Joel Greenblatt) %: 4.02% (50% below median its 10-year median of 8.01)
GF Value™: $352.91 vs. price of $573.87 (62.6% above fair value)
Industry Position: 16.2% above the Industrial Products median (#1231 of 3101)
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.
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