CumminsXTER:CUM 84 OCF Yield % is 4.31 as of Jul. 04, 2026, which is 43% below its 10-year median of 7.51. GuruFocus rates XTER:CUM with a GF Score™ of 84/100 and a GF Value™ of €287.00 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 3,070 Industrial Products companies, Cummins ranks better than 59.54% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Cummins OCF Yield % Related Terms
Cummins OCF Yield % Historical Data
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The historical data trend for Cummins's OCF Yield % 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 OCF Yield %, along with its competitors' market caps and OCF Yield % 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 OCF Yield % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Cummins's OCF Yield % 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.
Cummins (XTER:CUM) has a OCF Yield % of 4.31 as of Jul. 04, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Cummins and its competitors. This is 43% below median its historical median of 7.51. Over the past decade, Cummins' OCF Yield % has ranged from 2.61 to 17.94. According to the industry distribution chart, Cummins ranks #1242 out of 3070 companies in the Industrial Products industry, placing it in the top 40.5%.
Is Cummins' OCF Yield % too high?
Cummins' current OCF Yield % of 4.31 is 43% below median its 10-year median of 7.51. Over the past 10 years, this metric has ranged from a low of 2.61 to a high of 17.94. The Industrial Products industry median OCF Yield % is 2.88. Cummins' value of 4.31 is 49.7% above this industry median. Based on the distribution chart, Cummins ranks #1242 out of 3070 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' OCF Yield % compare to EMR and ITW?
According to the Industrial Products industry distribution chart, Cummins ranks #1242 out of 3070 companies for OCF Yield %. This puts Cummins in the upper half of its industry. The industry median OCF Yield % is 2.88. Cummins' value of 4.31 is 49.7% above this benchmark. Historically, Cummins' own OCF Yield % has ranged from 2.61 to 17.94 over the past decade. While the company's 10-year median is 7.51 vs. the industry median of 2.88, 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 OCF Yield % for an Industrial Products company?
The median OCF Yield % among Industrial Products companies is 2.88, based on 3,070 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins's current OCF Yield % of 4.31 is 49.7% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Cummins and its competitors. For the Industrial Products industry, the median OCF Yield % is 2.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins's current OCF Yield % is 4.31, which is 43% below median its own 10-year median of 7.51. 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 (XTER:CUM) is currently considered Significantly Overvalued. The stock's GF Value™ is €287.00, compared to a current price of €581.60 — trading 102.6% above its estimated fair value. The current OCF Yield % is 4.31, which is 43% below median its 10-year median of 7.51 and 49.7% above the Industrial Products industry median of 2.88. Cummins' overall GF Score™ is 84/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Cummins (XTER:CUM), the current OCF Yield % is 4.31 as of Jul. 04, 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 (XTER:CUM) Overvalued in 2026?
Based on GuruFocus' analysis, Cummins stock appears to be overvalued.
The current stock price of €581.60 is trading 102.6% above its estimated GF Value™ of €287.00.
GuruFocus considers Cummins to be Significantly Overvalued.
Key valuation signals for XTER:CUM:
OCF Yield %: 4.31 (43% below median its 10-year median of 7.51)
GF Value™: €287.00 vs. price of €581.60 (102.6% above fair value)
Industry Position: 49.7% above the Industrial Products median (#1242 of 3070)
No single metric tells the full story. See the XTER:CUM 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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