Cummins vs Paccar
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KIRA’s take AI analyst
I put Cummins and Paccar side by side, using each one’s latest annual report. Here is what stands out:
- Cummins is the larger business, with $33.7B of revenue in fiscal 2025 against $28.4B for Paccar.
- Cummins grew revenue faster (−1.3%, against −15.5%).
- Paccar turned more of its sales into free cash flow (12.9% FCF margin, against 7.1%).
- Investors pay more for each dollar of Cummins’s earnings: a P/E of 26.7x against 21.9x for Paccar.
Who comes out ahead
Of the 7 measures where higher (or lower) is clearly better, how many each company leads.
Cummins
CMI
6/7
Revenue growth5-year growthGross marginNet marginReturn on equityShare count change
Paccar
PCAR
1/7
FCF margin
Side by side
Best in the row
| Latest fiscal year | CMI FY25 | PCAR FY25 |
|---|---|---|
| Size | ||
| Market cap | $72.3B | $55.1B |
| Revenue | $33.7B | $28.4B |
| Free cash flow | $2.4B | $3.7B |
| Net income | $3.0B | $2.4B |
| Growth | ||
| Revenue growth | −1.3% | −15.5% |
| 5-year growth | 11.2% | 8.7% |
| Share count change | −0.3% | 0.0% |
| Profitability | ||
| Gross margin | 25.3% | 20.1% |
| Operating margin | 12.0% | — |
| Net margin | 8.8% | 8.4% |
| FCF margin | 7.1% | 12.9% |
| Return on capital | 18.3% | — |
| Return on equity | 26.2% | 12.9% |
| Balance sheet | ||
| Net debt | $3.6B | — |
| Net debt / EBITDA | 0.7x | — |
| Dividends and buybacks | $1.1B | $2.3B |
| Valuation & quality | ||
| P/E | 26.7x | 21.9x |
| Piotroski F-score | 7 | — |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.