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.
CumminsMEX:CMI 68 Return-on-Tangible-Equity is 32.94% as of Mar. 2026, which is 14% below its 10-year median of 38.48. GuruFocus rates MEX:CMI with a GF Score™ of 68/100 and a GF Value™ of MXN5,925.70 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,972 Industrial Products companies, Cummins ranks better than 93.1% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Cummins's annualized net income for the quarter that ended in Mar. 2026 was MXN47,174 Mil. Cummins's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN143,225 Mil. Therefore, Cummins's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 32.94%.
The historical rank and industry rank for Cummins's Return-on-Tangible-Equity or its related term are showing as below:
MEX:CMI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.73 Med: 38.48 Max: 84.12
Current: 36.64
During the past 13 years, Cummins's highest Return-on-Tangible-Equity was 84.12%. The lowest was 17.73%. And the median was 38.48%.
MEX:CMI's Return-on-Tangible-Equity is ranked better than 93.1% of 2972
companies
in the Industrial Products industry
Industry Median: 6.72
vs MEX:CMI: 36.64
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Cummins Return-on-Tangible-Equity Related Terms
Cummins Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Cummins's Return-on-Tangible-Equity 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.
MEX:CMI vs EMR, ITW, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Cummins's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cummins's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 32.94% mean?
Cummins (MEX:CMI) has a Return-on-Tangible-Equity of 32.94% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cummins and its competitors. This is 14% below median its historical median of 38.48. Over the past decade, Cummins' Return-on-Tangible-Equity has ranged from 17.73 to 84.12. According to the industry distribution chart, Cummins ranks #205 out of 2972 companies in the Industrial Products industry, placing it in the top 6.9%.
Is Cummins' Return-on-Tangible-Equity too high?
Cummins' current Return-on-Tangible-Equity of 32.94% is 14% below median its 10-year median of 38.48. Over the past 10 years, this metric has ranged from a low of 17.73 to a high of 84.12. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Cummins' value of 32.94% is 390.2% above this industry median. Based on the distribution chart, Cummins ranks #205 out of 2972 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Cummins has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins' Return-on-Tangible-Equity compare to EMR and ITW?
According to the Industrial Products industry distribution chart, Cummins ranks #205 out of 2972 companies for Return-on-Tangible-Equity. This places Cummins in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Cummins' value of 32.94% is 390.2% above this benchmark. Historically, Cummins' own Return-on-Tangible-Equity has ranged from 17.73 to 84.12 over the past decade. While the company's 10-year median is 38.48 vs. the industry median of 6.72, 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 Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,972 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins's current Return-on-Tangible-Equity of 32.94% is 390.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cummins and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins's current Return-on-Tangible-Equity is 32.94%, which is 14% below median its own 10-year median of 38.48. 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 (MEX:CMI) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN5,925.70, compared to a current price of MXN12,015.80 — trading 102.8% above its estimated fair value. The current Return-on-Tangible-Equity is 32.94%, which is 14% below median its 10-year median of 38.48 and 390.2% above the Industrial Products industry median of 6.72. Cummins' overall GF Score™ is 68/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Cummins (MEX:CMI), the current Return-on-Tangible-Equity is 32.94% as of Mar. 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 (MEX:CMI) Overvalued in 2026?
Based on GuruFocus' analysis, Cummins stock appears to be overvalued.
The current stock price of MXN12,015.80 is trading 102.8% above its estimated GF Value™ of MXN5,925.70.
GuruFocus considers Cummins to be Significantly Overvalued.
Key valuation signals for MEX:CMI:
Return-on-Tangible-Equity: 32.94% (14% below median its 10-year median of 38.48)
GF Value™: MXN5,925.70 vs. price of MXN12,015.80 (102.8% above fair value)
Industry Position: 390.2% above the Industrial Products median (#205 of 2972)
No single metric tells the full story. See the MEX: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.
68GF Score
Get the complete analysis for MEX:CMI
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:CMI has been successfully added to your 
