CMS ENERGY CORP (CMS) Fundamental Analysis & Valuation
NYSE:CMS • US1258961002
Current stock price
78.33 USD
-0.25 (-0.32%)
At close:
78.33 USD
0 (0%)
After Hours:
This CMS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CMS Profitability Analysis
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.
- Each year in the past 5 years CMS had a positive operating cash flow.
1.2 Ratios
- CMS's Return On Assets of 2.66% is in line compared to the rest of the industry. CMS outperforms 46.15% of its industry peers.
- CMS has a better Return On Equity (11.60%) than 65.38% of its industry peers.
- With a Return On Invested Capital value of 3.74%, CMS is not doing good in the industry: 65.38% 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 3.74%.
- 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.
- CMS's Profit Margin has improved in the last couple of years.
- CMS's Operating Margin of 20.22% is on the low side compared to the rest of the industry. CMS is outperformed by 65.38% 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 has a Gross Margin (69.45%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of CMS has remained more or less at the same level.
| 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
- 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.
- Compared to 5 years ago, CMS has more shares outstanding
- Compared to 1 year ago, CMS has a worse debt to assets ratio.
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.
- Looking at the Altman-Z score, with a value of 0.91, CMS is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
- A Debt/Equity ratio of 1.96 is on the high side and indicates that CMS has dependencies on debt 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 | 0.91 |
ROIC/WACC0.57
WACC6.57%
2.3 Liquidity
- CMS has a Current Ratio of 0.98. This is a bad value and indicates that CMS is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of CMS (0.98) is better than 65.38% of its industry peers.
- CMS has a Quick Ratio of 0.98. 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 0.76. This is comparable to the rest of the industry: CMS outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.76 |
3. CMS Growth Analysis
3.1 Past
- CMS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.78%.
- 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.
- The Revenue has grown by 13.63% in the past year. This is quite good.
- 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
- CMS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.02% yearly.
- 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 Year6.78%
Revenue Next 2Y5.72%
Revenue Next 3Y5.22%
Revenue Next 5Y6.47%
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. CMS Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 21.76 indicates a rather expensive valuation of CMS.
- Compared to the rest of the industry, the Price/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.
- CMS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.17.
- A Price/Forward Earnings ratio of 20.00 indicates a rather expensive 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.
- CMS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 20 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CMS is valued more expensive than 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14 |
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.
PEG (NY)2.48
PEG (5Y)3.58
EPS Next 2Y8.3%
EPS Next 3Y8.12%
5. CMS Dividend Analysis
5.1 Amount
- CMS has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
- CMS's Dividend Yield is slightly below the industry average, which is at 3.45.
- CMS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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.
- CMS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.09%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 62.49% of the earnings are spent on dividend by CMS. This is not a sustainable payout ratio.
- The dividend of CMS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.49%
EPS Next 2Y8.3%
EPS Next 3Y8.12%
CMS Fundamentals: All Metrics, Ratios and Statistics
78.33
-0.25 (-0.32%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)04-23 2026-04-23/bmo
Inst Owners98.14%
Inst Owner Change0%
Ins Owners0.59%
Ins Owner Change3.74%
Market Cap24.00B
Revenue(TTM)8.54B
Net Income(TTM)1.06B
Analysts75.24
Price Target80.76 (3.1%)
Short Float %5.3%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend2.19
Dividend Growth(5Y)6.09%
DP62.49%
Div Incr Years2
Div Non Decr Years2
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)0.53%
PT rev (3m)1.48%
EPS NQ rev (1m)1.68%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)0%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 20 | ||
| P/S | 2.81 | ||
| P/FCF | N/A | ||
| P/OCF | 10.74 | ||
| P/B | 2.62 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 14 |
EPS(TTM)3.6
EY4.6%
EPS(NY)3.92
Fwd EY5%
FCF(TTM)-5.19
FCFYN/A
OCF(TTM)7.29
OCFY9.31%
SpS27.87
BVpS29.84
TBVpS29.84
PEG (NY)2.48
PEG (5Y)3.58
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 | 0.91 |
F-Score5
WACC6.57%
ROIC/WACC0.57
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 Year6.78%
Revenue Next 2Y5.72%
Revenue Next 3Y5.22%
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 Fundamental Analysis 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.
How profitable is CMS ENERGY CORP (CMS) stock?
CMS ENERGY CORP (CMS) has a profitability rating of 5 / 10.
How financially healthy is CMS ENERGY CORP?
The financial health rating of CMS ENERGY CORP (CMS) is 1 / 10.
How sustainable is the dividend of CMS ENERGY CORP (CMS) stock?
The dividend rating of CMS ENERGY CORP (CMS) is 5 / 10 and the dividend payout ratio is 62.49%.