NASDAQ · STOCK
Cummins
$634.29
52W $354.68 – $737.76
52/100
$87.51B
32.8
1.22
Is CMI Bullish or Bearish?
Mixed.
Innellis AI committee rates Cummins (CMI) Watch with a composite score of 52/100
, based on 6 analysts with 83% agreement.
Last updated July 31, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +8.45 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -11.55 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee sees neither a compelling opportunity nor a clear risk at this stage. Conditions remain neutral — patience is warranted.
Bull & Bear Case
Bull Case
- ROE of 22.0% shows genuine earnings power backing the valuation — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Market regime is bullish (Bull market -- normal position sizing) — Macro
Bear Case
- P/E of 32.9 is moderate-to-rich — Value
- Price-to-book of 5.7x prices in significant intangible value — Value
- EPS declining -4.2% YoY despite any revenue growth — Growth
- MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of July 31, 2026
Overall Committee Score
52/100
Agreement
83%
Analysts
6
Conviction
High
Sector Rank
Top 72%
of 158 Industrials peers
Value Analyst
neutral
48
/ 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 22.0% shows genuine earnings power backing the valuation
− P/E of 32.9 is moderate-to-rich
Growth Analyst
neutral
48
/ 100 · High confidence
Moderate growth -- present but not remarkable
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− EPS declining -4.2% YoY despite any revenue growth
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Macro Analyst
neutral
58
/ 100 · Moderate confidence
Macro backdrop is mixed or neutral -- not a strong tailwind or headwind either way
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
62
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2744.14)
Investment Thesis Evolution
Committee score moved marginally from 51.1 to 51.5.
- Conviction strengthened -- analysts aligned more closely.
- Committee agreement increased sharply from 50% to 83%.
- New bearish signals: 3 appeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 5 signal(s) disappeared.
- Analyst(s) changed stance: Macro Analyst, Technical Analyst.
Analyst-level changes:
- Macro Analyst: stance bullish->neutral; score 65->58 (-8); +1 bullish signal(s).
- Portfolio Manager: +2 bearish signal(s).
- Technical Analyst: stance bearish->neutral; score 38->48 (+10).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-07-30 to 2026-07-31 (1 day apart).
Technical Analysis
RSI (14)
41.6
Neutral
MACD Histogram
-3.383
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$629.12
Resistance
$717.75
Bollinger %B
0.20
Inside Bands
Price vs Moving Averages
EMA 9
$642.44
Below
EMA 21
$654.89
Below
EMA 50
$659.45
Below
EMA 200
$583.54
Above
Fundamental Analysis
Valuation
48
Growth
82
Profitability
1
Financial Health
84
Cash Flow
37
Valuation
P/E Ratio
32.8×
P/B Ratio
7.10×
PEG Ratio
-7.62
Dividend Yield
0.01%
52W High
$737.76
52W Low
$354.68
Quality & Growth
ROE
23.0%
ROA
8.4%
Gross Margin
25.4%
Operating Margin
11.2%
Revenue Growth YoY
—
Debt / Equity
0.67
AI Fundamental Assessment
P/E ratio of 32.8 (rich relative to a 15-40x range); Price-to-book of 7.1x; PEG ratio of -7.6 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.2%; Return on assets of 0.1%; Net margin of 0.1%; Gross margin of 0.3%; Current ratio of 1.71 (healthy short-term liquidity); Debt-to-equity of 0.67; Free cash flow margin of 0.7% (thin cash generation); Free cash flow per share is positive (19.31); Most recent quarter beat estimates by 9.0%; EPS growth accelerating (-23.6% -> +44.0% QoQ); Analyst estimates rising over recent quarters
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