CMS ENERGY CORP (CMS) Stock Fundamental Analysis
NYSE:CMS - New York Stock Exchange, Inc. - US1258961002 - Common Stock - Currency: USD
CMS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
In the past year CMS was profitable.
CMS had a positive operating cash flow in the past year.
CMS had positive earnings in each of the past 5 years.
CMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CMS's Return On Assets of 2.78% is in line compared to the rest of the industry. CMS outperforms 52.00% of its industry peers.
CMS has a Return On Equity of 12.12%. This is amongst the best in the industry. CMS outperforms 84.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.75%, CMS is doing worse than 60.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CMS is in line with the industry average of 3.79%.
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
With a Profit Margin value of 12.97%, CMS perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
CMS's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 20.15%, CMS perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
CMS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.49%, CMS is in line with its industry, outperforming 60.00% 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 | 20.15% | ||
| 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
CMS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, CMS has an improved debt to assets ratio.
2.2 Solvency
CMS has an Altman-Z score of 0.92. This is a bad value and indicates that CMS is not financially healthy and even has some risk of bankruptcy.
CMS's Altman-Z score of 0.92 is fine compared to the rest of the industry. CMS outperforms 68.00% of its industry peers.
CMS has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.95, CMS is doing worse than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
ROIC/WACC0.56
WACC6.72%
2.3 Liquidity
CMS has a Current Ratio of 1.06. This is a normal value and indicates that CMS is financially healthy and should not expect problems in meeting its short term obligations.
CMS has a Current ratio of 1.06. This is amongst the best in the industry. CMS outperforms 84.00% of its industry peers.
CMS has a Quick Ratio of 1.06. This is a bad value and indicates that CMS is not financially healthy enough and could expect problems in meeting its short term obligations.
CMS has a Quick ratio of 0.84. This is in the better half of the industry: CMS outperforms 76.00% 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.
CMS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.05% yearly.
Looking at the last year, CMS shows a small growth in Revenue. The Revenue has grown by 5.87% in the last year.
The Revenue has been growing slightly by 1.89% on average over the past years.
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
Based on estimates for the next years, CMS will show a small growth in Earnings Per Share. The EPS will grow by 7.48% on average per year.
The Revenue is expected to grow by 3.55% on average over the next years.
EPS Next Y8.57%
EPS Next 2Y8.02%
EPS Next 3Y7.92%
EPS Next 5Y7.48%
Revenue Next Year1.06%
Revenue Next 2Y2.6%
Revenue Next 3Y3.07%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.73, the valuation of CMS can be described as rather expensive.
CMS's Price/Earnings ratio is a bit more expensive when compared to the industry. CMS is more expensive than 72.00% of the companies in the same industry.
CMS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
CMS is valuated rather expensively with a Price/Forward Earnings ratio of 18.90.
60.00% of the companies in the same industry are cheaper than CMS, based on the Price/Forward Earnings ratio.
CMS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 18.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CMS indicates a slightly more expensive valuation: CMS is more expensive than 76.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.62 |
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)2.54
PEG (5Y)3.59
EPS Next 2Y8.02%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
CMS has a Yearly Dividend Yield of 2.99%.
CMS's Dividend Yield is slightly below the industry average, which is at 3.67.
CMS's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
On average, the dividend of CMS grows each year by 6.54%, 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)6.54%
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 2Y8.02%
EPS Next 3Y7.92%
73.65
+0.02 (+0.03%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.94%
Inst Owner Change0.42%
Ins Owners0.55%
Ins Owner Change2.84%
Market Cap22.03B
Analysts75.65
Price Target76.41 (3.75%)
Short Float %2.72%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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)-2.01%
Min EPS beat(2)-2.92%
Max EPS beat(2)-1.09%
EPS beat(4)2
Avg EPS beat(4)1.86%
Min EPS beat(4)-2.92%
Max EPS beat(4)6.96%
EPS beat(8)4
Avg EPS beat(8)1.87%
EPS beat(12)7
Avg EPS beat(12)5.34%
EPS beat(16)10
Avg EPS beat(16)6.81%
Revenue beat(2)1
Avg Revenue beat(2)-2.61%
Min Revenue beat(2)-11.28%
Max Revenue beat(2)6.07%
Revenue beat(4)1
Avg Revenue beat(4)-5.66%
Min Revenue beat(4)-11.28%
Max Revenue beat(4)6.07%
Revenue beat(8)1
Avg Revenue beat(8)-13.32%
Revenue beat(12)5
Avg Revenue beat(12)-2.89%
Revenue beat(16)9
Avg Revenue beat(16)0.27%
PT rev (1m)2.75%
PT rev (3m)2.69%
EPS NQ rev (1m)-6.18%
EPS NQ rev (3m)-5.6%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.51%
Revenue NY rev (1m)-1.33%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 18.9 | ||
| P/S | 2.83 | ||
| P/FCF | N/A | ||
| P/OCF | 9.13 | ||
| P/B | 2.64 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 13.62 |
EPS(TTM)3.39
EY4.6%
EPS(NY)3.9
Fwd EY5.29%
FCF(TTM)-2.94
FCFYN/A
OCF(TTM)8.07
OCFY10.96%
SpS26.03
BVpS27.87
TBVpS27.87
PEG (NY)2.54
PEG (5Y)3.59
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 | 0.92 |
F-Score4
WACC6.72%
ROIC/WACC0.56
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 Y8.57%
EPS Next 2Y8.02%
EPS Next 3Y7.92%
EPS Next 5Y7.48%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%12.45%
Revenue Next Year1.06%
Revenue Next 2Y2.6%
Revenue Next 3Y3.07%
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%