CMS ENERGY CORP (CMS)
US1258961002 - Common Stock
Overall CMS gets a fundamental rating of 4 out of 10. We evaluated CMS against 26 industry peers in the Multi-Utilities industry. CMS has a medium profitability rating, but doesn't score so well on its financial health evaluation. CMS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CMS was profitable.
In the past year CMS had a positive cash flow from operations.
In the past 5 years CMS has always been profitable.
CMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CMS has a Return On Assets of 2.83%. This is in the better half of the industry: CMS outperforms 65.38% of its industry peers.
CMS has a better Return On Equity (12.08%) than 88.46% of its industry peers.
With a Return On Invested Capital value of 3.43%, CMS is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for CMS is in line with the industry average of 3.64%.
The 3 year average ROIC (3.43%) for CMS is below the current ROIC(3.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 12.08% | ||
| ROIC | 3.43% |
ROA(3y)3.31%
ROA(5y)3%
ROE(3y)14.58%
ROE(5y)14.21%
ROIC(3y)3.43%
ROIC(5y)3.73%
1.3 Margins
With a Profit Margin value of 13.05%, CMS perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
CMS's Profit Margin has improved in the last couple of years.
The Operating Margin of CMS (18.13%) is worse than 69.23% of its industry peers.
In the last couple of years the Operating Margin of CMS has remained more or less at the same level.
CMS's Gross Margin of 71.06% is in line compared to the rest of the industry. CMS outperforms 57.69% of its industry peers.
CMS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.13% | ||
| PM (TTM) | 13.05% | ||
| GM | 71.06% |
OM growth 3Y-6.72%
OM growth 5Y-0.42%
PM growth 3Y1.31%
PM growth 5Y4.22%
GM growth 3Y0.2%
GM growth 5Y1.62%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CMS is destroying value.
CMS has more shares outstanding than it did 1 year ago.
CMS has more shares outstanding than it did 5 years ago.
CMS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that CMS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.86, CMS is doing good in the industry, outperforming 65.38% of the companies in the same industry.
CMS has a Debt/Equity ratio of 1.89. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.89, CMS is doing worse than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.53
WACC6.54%
2.3 Liquidity
A Current Ratio of 1.35 indicates that CMS should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.35, CMS belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
CMS has a Quick Ratio of 1.05. This is a normal value and indicates that CMS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.05, CMS belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
CMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.42%, which is quite impressive.
CMS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.95% yearly.
Looking at the last year, CMS shows a very negative growth in Revenue. The Revenue has decreased by -13.54% in the last year.
CMS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.66% yearly.
EPS 1Y (TTM)41.42%
EPS 3Y5.09%
EPS 5Y5.95%
EPS Q2Q%38.57%
Revenue 1Y (TTM)-13.54%
Revenue growth 3Y3.76%
Revenue growth 5Y1.66%
Sales Q2Q%-4.73%
3.2 Future
CMS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.69% yearly.
The Revenue is expected to grow by 1.79% on average over the next years.
EPS Next Y8.35%
EPS Next 2Y8.05%
EPS Next 3Y7.79%
EPS Next 5Y7.69%
Revenue Next Year-6.47%
Revenue Next 2Y-1.91%
Revenue Next 3Y-0.39%
Revenue Next 5Y1.79%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.65 indicates a rather expensive valuation of CMS.
69.23% of the companies in the same industry are cheaper than CMS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CMS to the average of the S&P500 Index (28.42), we can say CMS is valued slightly cheaper.
CMS is valuated correctly with a Price/Forward Earnings ratio of 16.43.
CMS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CMS is more expensive than 76.92% of the companies in the same industry.
CMS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
76.92% of the companies in the same industry are cheaper than CMS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CMS does not grow enough to justify the current Price/Earnings ratio.
CMS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)2.97
EPS Next 2Y8.05%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
CMS has a Yearly Dividend Yield of 3.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.41, CMS is paying slightly less dividend.
CMS's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
On average, the dividend of CMS grows each year by 6.53%, which is quite nice.
CMS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.53%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
72.81% of the earnings are spent on dividend by CMS. This is not a sustainable payout ratio.
The dividend of CMS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP72.81%
EPS Next 2Y8.05%
EPS Next 3Y7.79%
CMS ENERGY CORP
NYSE:CMS (6/14/2024, 7:04:00 PM)
After market: 59.65 0 (0%)59.65
-0.1 (-0.17%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 16.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.11
PEG (5Y)2.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 12.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.13% | ||
| PM (TTM) | 13.05% | ||
| GM | 71.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)41.42%
EPS 3Y5.09%
EPS 5Y
EPS Q2Q%
EPS Next Y8.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.54%
Revenue growth 3Y3.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y