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CMI (Cummins) Piotroski F-Score : 7 (As of Jul. 05, 2025)


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What is Cummins Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cummins has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Cummins's Piotroski F-Score or its related term are showing as below:

CMI' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 7
Current: 7

During the past 13 years, the highest Piotroski F-Score of Cummins was 7. The lowest was 4. And the median was 6.


Cummins Piotroski F-Score Historical Data

The historical data trend for Cummins's Piotroski F-Score 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.

* Premium members only.

Cummins Piotroski F-Score Chart

Cummins Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 7.00 5.00 5.00 7.00

Cummins Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 5.00 7.00 7.00

Competitive Comparison of Cummins's Piotroski F-Score

For the Specialty Industrial Machinery subindustry, Cummins's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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's Piotroski F-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Cummins's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Cummins's Piotroski F-Score falls into.


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How is the Piotroski F-Score calculated?

* 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.

This Year (Mar25) TTM:Last Year (Mar24) TTM:
Net Income was 726 + 809 + 418 + 824 = $2,777 Mil.
Cash Flow from Operations was -851 + 640 + 1422 + -3 = $1,208 Mil.
Revenue was 8796 + 8456 + 8447 + 8174 = $33,873 Mil.
Gross Profit was 2193 + 2171 + 2034 + 2155 = $8,553 Mil.
Average Total Assets from the begining of this year (Mar24)
to the end of this year (Mar25) was
(31827 + 31320 + 32052 + 31540 + 32531) / 5 = $31854 Mil.
Total Assets at the begining of this year (Mar24) was $31,827 Mil.
Long-Term Debt & Capital Lease Obligation was $5,210 Mil.
Total Current Assets was $15,540 Mil.
Total Current Liabilities was $11,575 Mil.
Net Income was 720 + 656 + -1431 + 1993 = $1,938 Mil.

Revenue was 8638 + 8431 + 8543 + 8403 = $34,015 Mil.
Gross Profit was 2148 + 2071 + 2001 + 2041 = $8,261 Mil.
Average Total Assets from the begining of last year (Mar23)
to the end of last year (Mar24) was
(31433 + 31735 + 32097 + 32005 + 31827) / 5 = $31819.4 Mil.
Total Assets at the begining of last year (Mar23) was $31,433 Mil.
Long-Term Debt & Capital Lease Obligation was $6,103 Mil.
Total Current Assets was $15,620 Mil.
Total Current Liabilities was $11,686 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cummins's current Net Income (TTM) was 2,777. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cummins's current Cash Flow from Operations (TTM) was 1,208. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar24)
=2777/31827
=0.08725296

ROA (Last Year)=Net Income/Total Assets (Mar23)
=1938/31433
=0.06165495

Cummins's return on assets of this year was 0.08725296. Cummins's return on assets of last year was 0.06165495. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Cummins's current Net Income (TTM) was 2,777. Cummins's current Cash Flow from Operations (TTM) was 1,208. ==> 1,208 <= 2,777 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar25)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar24 to Mar25
=5210/31854
=0.16355874

Gearing (Last Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=6103/31819.4
=0.19180123

Cummins's gearing of this year was 0.16355874. Cummins's gearing of last year was 0.19180123. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar25)=Total Current Assets/Total Current Liabilities
=15540/11575
=1.3425486

Current Ratio (Last Year: Mar24)=Total Current Assets/Total Current Liabilities
=15620/11686
=1.33664214

Cummins's current ratio of this year was 1.3425486. Cummins's current ratio of last year was 1.33664214. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Cummins's number of shares in issue this year was 138.3. Cummins's number of shares in issue last year was 142.1. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=8553/33873
=0.25250199

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=8261/34015
=0.24286344

Cummins's gross margin of this year was 0.25250199. Cummins's gross margin of last year was 0.24286344. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar24)
=33873/31827
=1.06428504

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar23)
=34015/31433
=1.08214297

Cummins's asset turnover of this year was 1.06428504. Cummins's asset turnover of last year was 1.08214297. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+1+1+1+0
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cummins has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Cummins  (NYSE:CMI) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Cummins Piotroski F-Score Related Terms

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Cummins Business Description

Address
500 Jackson Street, Box 3005, Columbus, IN, USA, 47202-3005
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 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, who also make their own engines.
Executives
Mark Andrew Smith officer: VP - Operations Finance 500 JACKSON STREET, COLUMBUS IN 47201
Jennifer Rumsey officer: Chief Technical Officer 500 JACKSON STREET, COLUMBUS IN 47201
Sharon R Barner officer: VP - General Counsel 500 JACKSON STREET, COLUMBUS IN 47201
Di Leo Allen Bruno V director INTERNATIONAL BUSINESS MACHINES CORP., C/O SEC'Y'S OFFICE, ONE NEW ORCHARD ROAD, ARMONK NY 10504
Donald G Jackson officer: VP and Treasurer 500 JACKSON STREET, COLUMBUS IN 47201
Tony Satterthwaite officer: President - Distribution 1400 73RD AVENUE NE, MINNEAPOLIS MN 55432
Jeffrey T Wiltrout officer: VP - Corporate Strategy 500 JACKSON STREET, COLUMBUS IN 47201
Marvin Boakye officer: VP - Chief Human Resources Off PO BOX 99900, LOUISVILLE KY 40269
Daniel William Fisher director 2526 SPRUCE MEADOWS DRIVE, BROOMFIELD CO 80023
Sherry A Aaholm officer: Chief Information Officer 500 JACKSON STREET, COLUMBUS IN 47201
Luther E Peters officer: VP - Corporate Controller 500 JACKSON STREET, COLUMBUS IN 47201
Jonathan David Wood officer: Vice President & CTO 500 JACKSON STREET, COLUMBUS IN 47201
Georgia R Nelson director C/O TOWER AUTOMOTIVE INC, 27175 HAGGERTY ROAD, NOVI MI 48377-3626
Franklin R Changdiaz director 500 JACKSON ST., M/C 60701, COLUMBUS IN 47201
Norman Thomas Linebarger officer: President-Power Gen.