CMS ENERGY CORP (CMS) Stock Fundamental Analysis
NYSE:CMS - New York Stock Exchange, Inc. - US1258961002 - Common Stock - Currency: USD
Taking everything into account, CMS scores 4 out of 10 in our fundamental rating. CMS was compared to 25 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CMS had positive earnings in the past year.
In the past year CMS had a positive cash flow from operations.
In the past 5 years CMS has always been profitable.
In the past 5 years CMS always reported a positive cash flow from operatings.
1.2 Ratios
CMS has a Return On Assets of 2.78%. This is comparable to the rest of the industry: CMS outperforms 52.00% of its industry peers.
With a decent Return On Equity value of 12.12%, CMS is doing good in the industry, outperforming 68.00% of the companies in the same industry.
CMS's Return On Invested Capital of 3.75% is in line compared to the rest of the industry. CMS outperforms 44.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMS is in line with the industry average of 3.83%.
The 3 year average ROIC (3.46%) for CMS is below the current ROIC(3.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 12.12% | ||
| ROIC | 3.75% |
ROA(3y)2.67%
ROA(5y)3.05%
ROE(3y)11.83%
ROE(5y)13.91%
ROIC(3y)3.46%
ROIC(5y)3.6%
1.3 Margins
Looking at the Profit Margin, with a value of 12.97%, CMS is in line with its industry, outperforming 52.00% of the companies in the same industry.
CMS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.15%, CMS is in line with its industry, outperforming 44.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CMS has grown nicely.
CMS's Gross Margin of 72.49% is in line compared to the rest of the industry. CMS outperforms 60.00% of its industry peers.
CMS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.15% | ||
| PM (TTM) | 12.97% | ||
| GM | 72.49% |
OM growth 3Y8.16%
OM growth 5Y1.8%
PM growth 3Y-10.44%
PM growth 5Y5.87%
GM growth 3Y3.22%
GM growth 5Y2.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CMS is destroying value.
The number of shares outstanding for CMS has been increased compared to 1 year ago.
CMS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CMS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that CMS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CMS (0.91) is better than 72.00% of its industry peers.
A Debt/Equity ratio of 1.95 is on the high side and indicates that CMS has dependencies on debt financing.
CMS has a Debt to Equity ratio of 1.95. This is amonst the worse of the industry: CMS underperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.55
WACC6.85%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CMS should not have too much problems paying its short term obligations.
CMS's Current ratio of 1.06 is fine compared to the rest of the industry. CMS outperforms 76.00% of its industry peers.
A Quick Ratio of 0.84 indicates that CMS may have some problems paying its short term obligations.
CMS's Quick ratio of 0.84 is fine compared to the rest of the industry. CMS outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.30% over the past year.
The Earnings Per Share has been growing slightly by 6.05% on average over the past years.
The Revenue has been growing slightly by 5.87% in the past year.
Measured over the past years, CMS shows a small growth in Revenue. The Revenue has been growing by 1.89% on average per year.
EPS 1Y (TTM)0.3%
EPS 3Y5.55%
EPS 5Y6.05%
EPS Q2Q%5.15%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%12.45%
3.2 Future
The Earnings Per Share is expected to grow by 7.48% on average over the next years.
CMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.55% yearly.
EPS Next Y8.5%
EPS Next 2Y8.01%
EPS Next 3Y7.91%
EPS Next 5Y7.48%
Revenue Next Year1.19%
Revenue Next 2Y2.67%
Revenue Next 3Y3.12%
Revenue Next 5Y3.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.00, CMS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CMS indicates a rather expensive valuation: CMS more expensive than 84.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, CMS is valued a bit cheaper.
CMS is valuated rather expensively with a Price/Forward Earnings ratio of 18.27.
Based on the Price/Forward Earnings ratio, CMS is valued a bit more expensive than 76.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CMS to the average of the S&P500 Index (22.43), we can say CMS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 18.27 |
4.2 Price Multiples
CMS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CMS is more expensive than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.44 |
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.
The decent profitability rating of CMS may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)3.47
EPS Next 2Y8.01%
EPS Next 3Y7.91%
5. Dividend
5.1 Amount
CMS has a Yearly Dividend Yield of 3.06%.
CMS's Dividend Yield is slightly below the industry average, which is at 3.67.
Compared to an average S&P500 Dividend Yield of 2.36, CMS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
The dividend of CMS is nicely growing with an annual growth rate of 6.54%!
CMS has been paying a dividend for at least 10 years, so it has a reliable track record.
CMS has decreased its dividend recently.
Dividend Growth(5Y)6.54%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CMS pays out 62.97% of its income as dividend. 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.
DP62.97%
EPS Next 2Y8.01%
EPS Next 3Y7.91%
NYSE:CMS (5/21/2025, 11:05:50 AM)
71.2
-0.78 (-1.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.94%
Inst Owner Change1.12%
Ins Owners0.55%
Ins Owner Change3.44%
Market Cap21.30B
Analysts75.65
Price Target77.41 (8.72%)
Short Float %2.52%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend2.11
Dividend Growth(5Y)6.54%
DP62.97%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.75%
Min EPS beat(2)-1.09%
Max EPS beat(2)-0.41%
EPS beat(4)2
Avg EPS beat(4)2.48%
Min EPS beat(4)-1.09%
Max EPS beat(4)6.96%
EPS beat(8)4
Avg EPS beat(8)2.18%
EPS beat(12)7
Avg EPS beat(12)5.55%
EPS beat(16)10
Avg EPS beat(16)6.97%
Revenue beat(2)1
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-11.28%
Max Revenue beat(2)8.27%
Revenue beat(4)1
Avg Revenue beat(4)-5.11%
Min Revenue beat(4)-11.28%
Max Revenue beat(4)8.27%
Revenue beat(8)1
Avg Revenue beat(8)-13.04%
Revenue beat(12)5
Avg Revenue beat(12)-2.7%
Revenue beat(16)9
Avg Revenue beat(16)0.41%
PT rev (1m)1.94%
PT rev (3m)4%
EPS NQ rev (1m)3.52%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-3%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 18.27 | ||
| P/S | 2.74 | ||
| P/FCF | N/A | ||
| P/OCF | 8.82 | ||
| P/B | 2.56 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 13.44 |
EPS(TTM)3.39
EY4.76%
EPS(NY)3.9
Fwd EY5.47%
FCF(TTM)-2.94
FCFYN/A
OCF(TTM)8.07
OCFY11.33%
SpS26.03
BVpS27.87
TBVpS27.87
PEG (NY)2.47
PEG (5Y)3.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 12.12% | ||
| ROCE | 4.66% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.8% | ||
| ROICexgc | 3.8% | ||
| OM | 20.15% | ||
| PM (TTM) | 12.97% | ||
| GM | 72.49% | ||
| FCFM | N/A |
ROA(3y)2.67%
ROA(5y)3.05%
ROE(3y)11.83%
ROE(5y)13.91%
ROIC(3y)3.46%
ROIC(5y)3.6%
ROICexc(3y)3.48%
ROICexc(5y)3.62%
ROICexgc(3y)3.48%
ROICexgc(5y)3.62%
ROCE(3y)4.31%
ROCE(5y)4.48%
ROICexcg growth 3Y1.52%
ROICexcg growth 5Y-2.23%
ROICexc growth 3Y1.52%
ROICexc growth 5Y-2.23%
OM growth 3Y8.16%
OM growth 5Y1.8%
PM growth 3Y-10.44%
PM growth 5Y5.87%
GM growth 3Y3.22%
GM growth 5Y2.04%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.75 | ||
| Cap/Depr | 261.35% | ||
| Cap/Sales | 42.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 0.91 |
F-Score4
WACC6.85%
ROIC/WACC0.55
Cap/Depr(3y)219.4%
Cap/Depr(5y)213.13%
Cap/Sales(3y)33.34%
Cap/Sales(5y)32.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.3%
EPS 3Y5.55%
EPS 5Y6.05%
EPS Q2Q%5.15%
EPS Next Y8.5%
EPS Next 2Y8.01%
EPS Next 3Y7.91%
EPS Next 5Y7.48%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%12.45%
Revenue Next Year1.19%
Revenue Next 2Y2.67%
Revenue Next 3Y3.12%
Revenue Next 5Y3.55%
EBIT growth 1Y17.7%
EBIT growth 3Y9.07%
EBIT growth 5Y3.72%
EBIT Next Year96.17%
EBIT Next 3Y32.79%
EBIT Next 5Y22.27%
FCF growth 1Y31.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y103.2%
OCF growth 3Y9.22%
OCF growth 5Y5.77%