CMS ENERGY CORP (CMS) Fundamental Analysis & Valuation
NYSE:CMS • US1258961002
76.78 USD
+0.94 (+1.24%)
At close: Mar 12, 2026
76.78 USD
0 (0%)
After Hours: 3/12/2026, 4:00:45 PM
This CMS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall CMS gets a fundamental rating of 3 out of 10. We evaluated CMS against 26 industry peers in the Multi-Utilities industry. While CMS is still in line with the averages on profitability rating, there are concerns on its financial health. CMS is valied quite expensively at the moment, while it does show a decent growth rate. Finally CMS also has an excellent dividend rating.
1. CMS Profitability Analysis
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.
- Each year in the past 5 years CMS had a positive operating cash flow.
1.2 Ratios
- CMS has a Return On Assets of 2.66%. This is comparable to the rest of the industry: CMS outperforms 46.15% of its industry peers.
- Looking at the Return On Equity, with a value of 11.60%, CMS is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
- CMS has a worse Return On Invested Capital (3.74%) than 65.38% of its industry peers.
- CMS had an Average Return On Invested Capital over the past 3 years of 3.50%. This is in line with the industry average of 3.74%.
- The last Return On Invested Capital (3.74%) for CMS is above the 3 year average (3.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 11.6% | ||
| ROIC | 3.74% |
ROA(3y)2.68%
ROA(5y)3.07%
ROE(3y)11.76%
ROE(5y)13.48%
ROIC(3y)3.5%
ROIC(5y)3.46%
1.3 Margins
- The Profit Margin of CMS (12.43%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of CMS has grown nicely.
- Looking at the Operating Margin, with a value of 20.22%, CMS is doing worse than 65.38% of the companies in the same industry.
- CMS's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 69.45%, CMS is in line with its industry, outperforming 57.69% of the companies in the same industry.
- CMS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.22% | ||
| PM (TTM) | 12.43% | ||
| GM | 69.45% |
OM growth 3Y12.41%
OM growth 5Y-0.16%
PM growth 3Y8.9%
PM growth 5Y1.91%
GM growth 3Y3.81%
GM growth 5Y0.4%
2. CMS Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 0.89, we must say that CMS is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 0.89, CMS is doing good in the industry, outperforming 65.38% of the companies in the same industry.
- CMS has a Debt/Equity ratio of 1.96. This is a high value indicating a heavy dependency on external financing.
- CMS's Debt to Equity ratio of 1.96 is on the low side compared to the rest of the industry. CMS is outperformed by 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.58
WACC6.41%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that CMS may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.98, CMS is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
- A Quick Ratio of 0.76 indicates that CMS may have some problems paying its short term obligations.
- The Quick ratio of CMS (0.76) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.76 |
3. CMS Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 7.78% over the past year.
- Measured over the past 5 years, CMS shows a small growth in Earnings Per Share. The EPS has been growing by 6.08% on average per year.
- CMS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.63%.
- CMS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.03% yearly.
EPS 1Y (TTM)7.78%
EPS 3Y7.6%
EPS 5Y6.08%
EPS Q2Q%8.05%
Revenue 1Y (TTM)13.63%
Revenue growth 3Y-0.22%
Revenue growth 5Y5.03%
Sales Q2Q%12.27%
3.2 Future
- The Earnings Per Share is expected to grow by 8.02% on average over the next years. This is quite good.
- Based on estimates for the next years, CMS will show a small growth in Revenue. The Revenue will grow by 6.47% on average per year.
EPS Next Y8.77%
EPS Next 2Y8.3%
EPS Next 3Y8.12%
EPS Next 5Y8.02%
Revenue Next Year6.7%
Revenue Next 2Y5.65%
Revenue Next 3Y5.11%
Revenue Next 5Y6.47%
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 accelerating: in the next years the growth will be better than in the last years.
4. CMS Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.33, CMS is valued on the expensive side.
- Based on the Price/Earnings ratio, CMS is valued a bit more expensive than 73.08% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.15, CMS is valued at the same level.
- The Price/Forward Earnings ratio is 19.61, which indicates a rather expensive current valuation of CMS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CMS indicates a slightly more expensive valuation: CMS is more expensive than 73.08% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.27, CMS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 19.61 |
4.2 Price Multiples
- 80.77% 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 | 13.72 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.43
PEG (5Y)3.51
EPS Next 2Y8.3%
EPS Next 3Y8.12%
5. CMS Dividend Analysis
5.1 Amount
- CMS has a Yearly Dividend Yield of 5.97%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.84, CMS pays a better dividend. On top of this CMS pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CMS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
5.2 History
- On average, the dividend of CMS grows each year by 6.09%, which is quite nice.
- CMS has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of CMS decreased recently.
Dividend Growth(5Y)6.09%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- CMS pays out 62.49% of its income as dividend. This is not a sustainable payout ratio.
- CMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.49%
EPS Next 2Y8.3%
EPS Next 3Y8.12%
CMS Fundamentals: All Metrics, Ratios and Statistics
76.78
+0.94 (+1.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)04-22 2026-04-22/bmo
Inst Owners98.14%
Inst Owner Change0.18%
Ins Owners0.59%
Ins Owner Change4.01%
Market Cap23.53B
Revenue(TTM)8.54B
Net Income(TTM)1.06B
Analysts75.24
Price Target80.33 (4.62%)
Short Float %4.84%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
Yearly Dividend2.19
Dividend Growth(5Y)6.09%
DP62.49%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-17 2026-02-17 (0.57)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.85%
Min EPS beat(2)-1.18%
Max EPS beat(2)8.88%
EPS beat(4)2
Avg EPS beat(4)2.35%
Min EPS beat(4)-1.18%
Max EPS beat(4)8.88%
EPS beat(8)5
Avg EPS beat(8)2.8%
EPS beat(12)6
Avg EPS beat(12)1.5%
EPS beat(16)10
Avg EPS beat(16)5.18%
Revenue beat(2)2
Avg Revenue beat(2)12.91%
Min Revenue beat(2)8.42%
Max Revenue beat(2)17.4%
Revenue beat(4)4
Avg Revenue beat(4)9.71%
Min Revenue beat(4)4.73%
Max Revenue beat(4)17.4%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)5
Avg Revenue beat(12)-6.02%
Revenue beat(16)9
Avg Revenue beat(16)0.64%
PT rev (1m)1.75%
PT rev (3m)0.16%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-4.5%
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)2.33%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 19.61 | ||
| P/S | 2.76 | ||
| P/FCF | N/A | ||
| P/OCF | 10.53 | ||
| P/B | 2.57 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 13.72 |
EPS(TTM)3.6
EY4.69%
EPS(NY)3.92
Fwd EY5.1%
FCF(TTM)-5.19
FCFYN/A
OCF(TTM)7.29
OCFY9.5%
SpS27.87
BVpS29.84
TBVpS29.84
PEG (NY)2.43
PEG (5Y)3.51
Graham Number49.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 11.6% | ||
| ROCE | 4.75% | ||
| ROIC | 3.74% | ||
| ROICexc | 3.79% | ||
| ROICexgc | 3.79% | ||
| OM | 20.22% | ||
| PM (TTM) | 12.43% | ||
| GM | 69.45% | ||
| FCFM | N/A |
ROA(3y)2.68%
ROA(5y)3.07%
ROE(3y)11.76%
ROE(5y)13.48%
ROIC(3y)3.5%
ROIC(5y)3.46%
ROICexc(3y)3.53%
ROICexc(5y)3.49%
ROICexgc(3y)3.53%
ROICexgc(5y)3.49%
ROCE(3y)4.46%
ROCE(5y)4.4%
ROICexgc growth 3Y3.53%
ROICexgc growth 5Y-1.36%
ROICexc growth 3Y3.53%
ROICexc growth 5Y-1.36%
OM growth 3Y12.41%
OM growth 5Y-0.16%
PM growth 3Y8.9%
PM growth 5Y1.91%
GM growth 3Y3.81%
GM growth 5Y0.4%
F-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.92 | ||
| Cap/Depr | 292.8% | ||
| Cap/Sales | 44.78% | ||
| Interest Coverage | 2.33 | ||
| Cash Conversion | 73.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.89 |
F-Score5
WACC6.41%
ROIC/WACC0.58
Cap/Depr(3y)246.72%
Cap/Depr(5y)227.47%
Cap/Sales(3y)39.07%
Cap/Sales(5y)34.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.78%
EPS 3Y7.6%
EPS 5Y6.08%
EPS Q2Q%8.05%
EPS Next Y8.77%
EPS Next 2Y8.3%
EPS Next 3Y8.12%
EPS Next 5Y8.02%
Revenue 1Y (TTM)13.63%
Revenue growth 3Y-0.22%
Revenue growth 5Y5.03%
Sales Q2Q%12.27%
Revenue Next Year6.7%
Revenue Next 2Y5.65%
Revenue Next 3Y5.11%
Revenue Next 5Y6.47%
EBIT growth 1Y16.14%
EBIT growth 3Y12.16%
EBIT growth 5Y4.86%
EBIT Next Year87.74%
EBIT Next 3Y30.77%
EBIT Next 5Y22.98%
FCF growth 1Y-145.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.7%
OCF growth 3Y37.75%
OCF growth 5Y11.86%
CMS ENERGY CORP / CMS FAQ
What is the ChartMill fundamental rating of CMS ENERGY CORP (CMS) stock?
ChartMill assigns a fundamental rating of 3 / 10 to CMS.
What is the valuation status of CMS ENERGY CORP (CMS) stock?
ChartMill assigns a valuation rating of 1 / 10 to CMS ENERGY CORP (CMS). This can be considered as Overvalued.
What is the profitability of CMS stock?
CMS ENERGY CORP (CMS) has a profitability rating of 5 / 10.
What are the PE and PB ratios of CMS ENERGY CORP (CMS) stock?
The Price/Earnings (PE) ratio for CMS ENERGY CORP (CMS) is 21.33 and the Price/Book (PB) ratio is 2.57.
What is the expected EPS growth for CMS ENERGY CORP (CMS) stock?
The Earnings per Share (EPS) of CMS ENERGY CORP (CMS) is expected to grow by 8.77% in the next year.