CMS ENERGY CORP (CMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMS - US1258961002 - Common Stock
70.7 USD
-0.27 (-0.38%)
70.7 USD
0 (0%)
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 an excellent profitability rating, but there are concerns on its financial health. CMS is valied quite expensively at the moment, while it does show a decent growth rate. CMS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year CMS was profitable.
- CMS had a positive operating cash flow in the past year.
- Each year in the past 5 years CMS has been profitable.
- In the past 5 years CMS always reported a positive cash flow from operatings.
1.2 Ratios
- CMS has a better Return On Assets (2.73%) than 61.54% of its industry peers.
- CMS has a Return On Equity of 11.70%. This is amongst the best in the industry. CMS outperforms 80.77% of its industry peers.
- The Return On Invested Capital of CMS (3.95%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for CMS is in line with the industry average of 3.94%.
- The last Return On Invested Capital (3.95%) for CMS is above the 3 year average (3.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 11.7% | ||
| ROIC | 3.95% |
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
- CMS's Profit Margin of 12.50% is in line compared to the rest of the industry. CMS outperforms 50.00% of its industry peers.
- CMS's Profit Margin has improved in the last couple of years.
- CMS has a worse Operating Margin (20.70%) than 65.38% of its industry peers.
- In the last couple of years the Operating Margin of CMS has grown nicely.
- Looking at the Gross Margin, with a value of 70.26%, CMS is in line with its industry, outperforming 57.69% of the companies in the same industry.
- In the last couple of years the Gross Margin of CMS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.7% | ||
| PM (TTM) | 12.5% | ||
| GM | 70.26% |
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.
- Compared to 1 year ago, CMS has more shares outstanding
- Compared to 5 years ago, CMS has more shares outstanding
- Compared to 1 year ago, CMS has an improved debt to assets ratio.
2.2 Solvency
- CMS has an Altman-Z score of 0.89. This is a bad value and indicates that CMS is not financially healthy and even has some risk of bankruptcy.
- CMS has a Altman-Z score (0.89) which is comparable to the rest of the industry.
- CMS has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
- CMS has a worse Debt to Equity ratio (1.91) than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.6
WACC6.54%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that CMS may have some problems paying its short term obligations.
- CMS's Current ratio of 0.90 is on the low side compared to the rest of the industry. CMS is outperformed by 69.23% of its industry peers.
- A Quick Ratio of 0.60 indicates that CMS may have some problems paying its short term obligations.
- With a Quick ratio value of 0.60, CMS is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.28% over the past year.
- The Earnings Per Share has been growing slightly by 6.05% on average over the past years.
- The Revenue has grown by 10.96% in the past year. This is quite good.
- 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)0.28%
EPS 3Y5.55%
EPS 5Y6.05%
EPS Q2Q%10.71%
Revenue 1Y (TTM)10.96%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%15.95%
3.2 Future
- Based on estimates for the next years, CMS will show a small growth in Earnings Per Share. The EPS will grow by 7.72% on average per year.
- The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y8.59%
EPS Next 2Y7.96%
EPS Next 3Y7.9%
EPS Next 5Y7.72%
Revenue Next Year2.64%
Revenue Next 2Y3.3%
Revenue Next 3Y3.7%
Revenue Next 5Y4.81%
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. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 20.03, CMS is valued on the expensive side.
- 73.08% of the companies in the same industry are cheaper than CMS, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. CMS is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 18.16, the valuation of CMS can be described as rather expensive.
- 73.08% of the companies in the same industry are cheaper than CMS, based on the Price/Forward Earnings ratio.
- CMS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 18.16 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CMS is valued a bit more expensive than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of CMS may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)3.31
EPS Next 2Y7.96%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.13%, CMS is a good candidate for dividend investing.
- CMS's Dividend Yield is rather good when compared to the industry average which is at 4.14. CMS pays more dividend than 92.31% of the companies in the same industry.
- CMS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
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.
- The dividend of CMS decreased recently.
Dividend Growth(5Y)6.54%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- CMS pays out 62.87% 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.
DP62.87%
EPS Next 2Y7.96%
EPS Next 3Y7.9%
CMS ENERGY CORP / CMS FAQ
What is the ChartMill fundamental rating of CMS ENERGY CORP (CMS) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CMS.
What is the valuation status of CMS ENERGY CORP (CMS) stock?
ChartMill assigns a valuation rating of 2 / 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 7 / 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 20.03 and the Price/Book (PB) ratio is 2.43.
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 8.59% in the next year.