Cummins Inc. CMI

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
58/100
Moderate

Ranked against 81 peers in Specialty Industrial Machinery

About Cummins Inc.

Cummins Inc. offers various power solutions worldwide. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. It offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; and on- and off-highway, and other products. The company also provides aftertreatment technology and solutions comprising custom engineering systems and integrated controls, oxidation … Full CMI analysis →

Key strengths

  • ROIC Sustainably Above Peers ROIC at 84.4th percentile exceeds peers and WACC, demonstrating superior capital allocation.

Key risks

  • Scale Without Profitability Despite scale, profitability lags peers (score 0.39), suggesting limited competitive advantage.
  • Inconsistent Cash Generation Cash generation is inconsistent (score 0.48), indicating operational challenges.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
50
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where CMI ranks in Specialty Industrial Machinery

Cummins Inc. ranks #35 of 82 scored companies in Specialty Industrial Machinery by moat score — the top 43%. The widest moat in the group is Graco Inc. (GGG) at 86/100.

# Company Moat score Rating
31 Gorman-Rupp Company (The) GRC 60/100 Moderate
32 Power Solutions International, PSIX 60/100 Moderate
33 ZJK Industrial Co., Ltd. ZJK 60/100 Moderate
34 Thermon Group Holdings, Inc. THR 59/100 Moderate
35 Cummins Inc. CMI 58/100 Moderate
36 Flowserve Corporation FLS 58/100 Moderate
37 Enpro Inc. NPO 56/100 Moderate
38 Crane NXT, Co. CXT 54/100 Moderate
39 Regal Rexnord Corporation RRX 54/100 Moderate

See every General Corporate company ranked by moat score →

How CMI scores on the Corporate Default defenses

Pricing Power

Score 50 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 76 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 54 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 72 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 54 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 44 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding CMI's moat

What is Cummins Inc.'s moat score?

Cummins Inc. (CMI) scores 58 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #35 of 82 scored companies in Specialty Industrial Machinery, the top 43%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 81 companies in Specialty Industrial Machinery. Its strongest defense is Cost Advantage (76/100) and its weakest is Scale & Market Position (44/100).

How does Cummins Inc. compare with other Specialty Industrial Machinery companies?

Cummins Inc. ranks #35 of 82 scored companies in Specialty Industrial Machinery by moat score. The widest moat in Specialty Industrial Machinery is Graco Inc. (GGG) at 86/100. The companies ranked closest are Thermon Group Holdings, Inc. (THR) at 59 just above it and Flowserve Corporation (FLS) at 58 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 81 companies in Specialty Industrial Machinery. The defenses are then weighted to produce the overall score out of 100.

Why is Cummins Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Cummins Inc.?

The Corporate Default template measures 6 defenses, and CMI scores: Pricing Power (50), Cost Advantage (76), Customer Stickiness (54), Capital Efficiency (72), Resilience (54), Scale & Market Position (44). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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