Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have watched Cummins for the better part of five decades. It is a proud, competent, hundred-and-seven-year-old American industrial company that survived the great winnowing of the diesel engine business and today enjoys a genuine tailwind from data-center backup power. Yet when we apply our standard honestly — a durable moat that compounds for decades, run by management of unquestioned integrity, bought with a margin of safety — Cummins falls short on the first test, carries a serious blemish on the second, and fails the third outright. At $648.85, roughly 23 times what we would call cyclically flattered earnings, the market is pricing a good cyclical business as if it were a wonderful secular one. We would not buy, and if we owned it we would be taking money off the table. Two stars. This is a business a bright teenager can understand, which we appreciate.
Recent filings analysed: 8-K (2026-08-04), 10-Q (2026-08-04), 8-K (2026-05-14), 8-K (2026-05-05).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation