Cummins Inc. logo CMI - Cummins Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 27
HOLD 23
SELL 1
STRONG
SELL
0
| PRICE TARGET: $787.50 DETAILS
HIGH: $894.00
LOW: $700.00
MEDIAN: $765.00
CONSENSUS: $787.50
UPSIDE: 41.45%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B+ 78.7 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 25%
B 73.8
  • 5yr Avg ROIC 15.3% 81/100
  • Operating Margin Trend +0.10 pp/yr 58/100
Contributes 18.5 pts toward composite.

Capital Efficiency

Weight: 15%
A 92.8
  • 5yr Avg ROE 23.8% 98/100
  • 5yr Share-Count CAGR -1.4% 83/100
Contributes 13.9 pts toward composite.

Growth Quality

Weight: 25%
A- 81.3
  • 5yr Revenue CAGR 11.2% 83/100
  • 5yr EPS CAGR 11.3% 80/100
  • Revenue-Growth Years (5) 4/5 80/100
Contributes 20.3 pts toward composite.

Cash Generation

Weight: 20%
B 71.6
  • 5yr FCF Margin 5.2% 51/100
  • 5yr FCF/NI Conversion 1.17x 97/100
Contributes 14.3 pts toward composite.

Balance Sheet

Weight: 10%
A 90.7
  • Net Debt / EBITDA 0.83x 87/100
  • Interest Coverage (EBIT/Int) 13.05x 90/100
  • Altman Z-Score 4.84 99/100
Contributes 9.1 pts toward composite.

Stability

Weight: 5%
C 53.0
  • EPS Volatility (σ/μ) 0.51 29/100
  • Negative-Revenue Years (5) 1/5 80/100
  • Piotroski F-Score 6 67/100
Contributes 2.6 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Holding

4 of 4 gurus held; 2 added; 2 trimmed.

Holders
4
Avg Δ position
+177.1%
New buys
0
Full exits
0
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
  • Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (5%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.