Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
CumminsCMI -0.06%84 Net-Net Working Capital is $-77.88 as of Jun. 2026. GuruFocus rates CMI with a GF Score™ of 84/100 and a GF Value™ of $350.80 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,357 Industrial Products companies, Cummins ranks worse than 73691.89% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Cummins's Net-Net Working Capital for the quarter that ended in Jun. 2026 was $-77.88.
The industry rank for Cummins's Net-Net Working Capital or its related term are showing as below:
CMI's Price-to-Net-Net-Working-Capital is not ranked *
in the Industrial Products industry.
Industry Median: 8.33 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Cummins (NYSE:CMI) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Cummins Net-Net Working Capital Related Terms
Cummins Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Cummins's Net-Net Working Capital 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.
CMI vs EMR, ITW, PH: Net-Net Working Capital Comparison
For the Specialty Industrial Machinery subindustry, Cummins's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Cummins's Price-to-Net-Net-Working-Capital 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-77.88 mean?
Cummins (CMI) has a Net-Net Working Capital of $-77.88 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Cummins According to the industry distribution chart, Cummins ranks #999999 out of 1357 companies in the Industrial Products industry.
Is Cummins' Net-Net Working Capital too high?
Cummins' current Net-Net Working Capital is $-77.88. Based on the distribution chart, Cummins ranks #999999 out of 1357 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. 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' Net-Net Working Capital compare to EMR and ITW?
According to the Industrial Products industry distribution chart, Cummins ranks #999999 out of 1357 companies for Net-Net Working Capital. This places Cummins in the lower half of its industry. The industry median Net-Net Working Capital is 8.33. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Industrial Products company?
The median Net-Net Working Capital among Industrial Products companies is 8.33, based on 1,357 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Cummins For the Industrial Products industry, the median Net-Net Working Capital is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins's current Net-Net Working Capital is $-77.88. 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 $350.80, compared to a current price of $631.20 — trading 79.9% above its estimated fair value. The current Net-Net Working Capital is $-77.88. Cummins' overall GF Score™ is 84/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Cummins (CMI), the current Net-Net Working Capital is $-77.88 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 $631.20 is trading 79.9% above its estimated GF Value™ of $350.80.
GuruFocus considers Cummins to be Significantly Overvalued.
Key valuation signals for CMI:
Net-Net Working Capital: $-77.88
GF Value™: $350.80 vs. price of $631.20 (79.9% above fair value)
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
Get the complete analysis for CMI
Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CMI has been successfully added to your 
