CMS ENERGY CORP (CMS) Stock Fundamental Analysis
USA - NYSE:CMS - US1258961002 - Common Stock
74.75 USD
+0.19 (+0.25%)
74.75 USD
0 (0%)
Taking everything into account, CMS scores 4 out of 10 in our fundamental rating. CMS was compared to 26 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 quite expensive at the moment. 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.
CMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CMS has a Return On Assets (2.69%) which is in line with its industry peers.
With a decent Return On Equity value of 12.07%, CMS is doing good in the industry, outperforming 65.38% of the companies in the same industry.
CMS has a Return On Invested Capital of 3.74%. This is in the lower half of the industry: CMS underperforms 61.54% of its industry peers.
CMS had an Average Return On Invested Capital over the past 3 years of 3.46%. This is in line with the industry average of 3.83%.
The last Return On Invested Capital (3.74%) for CMS is above the 3 year average (3.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 12.07% | ||
| ROIC | 3.74% |
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 12.64% is in line compared to the rest of the industry. CMS outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of CMS has grown nicely.
CMS's Operating Margin of 20.00% is on the low side compared to the rest of the industry. CMS is outperformed by 61.54% of its industry peers.
In the last couple of years the Operating Margin of CMS has grown nicely.
CMS has a Gross Margin (71.26%) which is comparable to the rest of the industry.
CMS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20% | ||
| PM (TTM) | 12.64% | ||
| GM | 71.26% |
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
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.
The number of shares outstanding for CMS has been increased compared to 5 years ago.
CMS has a better debt/assets ratio than last year.
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 of 0.89. This is in the better half of the industry: CMS outperforms 61.54% of its industry peers.
CMS has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.02, CMS is doing worse than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.56
WACC6.64%
2.3 Liquidity
CMS has a Current Ratio of 1.00. 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 better Current ratio (1.00) than 69.23% of its industry peers.
CMS has a Quick Ratio of 1.00. 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's Quick ratio of 0.77 is fine compared to the rest of the industry. CMS outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.56% 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 quite strong growth in Revenue. The Revenue has grown by 8.25% in the last year.
CMS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.89% yearly.
EPS 1Y (TTM)4.56%
EPS 3Y5.55%
EPS 5Y6.05%
EPS Q2Q%7.58%
Revenue 1Y (TTM)8.25%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%14.37%
3.2 Future
The Earnings Per Share is expected to grow by 7.57% on average over the next years.
The Revenue is expected to grow by 4.75% on average over the next years.
EPS Next Y8.5%
EPS Next 2Y7.95%
EPS Next 3Y7.87%
EPS Next 5Y7.57%
Revenue Next Year2.84%
Revenue Next 2Y3.44%
Revenue Next 3Y3.65%
Revenue Next 5Y4.75%
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
With a Price/Earnings ratio of 21.73, CMS is valued on the expensive side.
CMS's Price/Earnings ratio is a bit more expensive when compared to the industry. CMS is more expensive than 73.08% of the companies in the same industry.
CMS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.21 indicates a rather expensive valuation of CMS.
Based on the Price/Forward Earnings ratio, CMS is valued a bit more expensive than 73.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. CMS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 19.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMS is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.87 |
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)2.56
PEG (5Y)3.59
EPS Next 2Y7.95%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
CMS has a Yearly Dividend Yield of 2.91%.
CMS's Dividend Yield is slightly below the industry average, which is at 3.69.
CMS's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
The dividend of CMS is nicely growing with an annual growth rate of 6.54%!
CMS has paid a dividend for at least 10 years, which is 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
71.96% of the earnings are spent on dividend by CMS. 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.
DP71.96%
EPS Next 2Y7.95%
EPS Next 3Y7.87%
74.75
+0.19 (+0.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners101.05%
Inst Owner Change-0.77%
Ins Owners0.56%
Ins Owner Change0.39%
Market Cap22.38B
Revenue(TTM)8.02B
Net Income(TTM)1.01B
Analysts76
Price Target77.37 (3.51%)
Short Float %4.21%
Short Ratio5.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend2.11
Dividend Growth(5Y)6.54%
DP71.96%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.85%
Min EPS beat(2)-0.41%
Max EPS beat(2)2.11%
EPS beat(4)2
Avg EPS beat(4)1.89%
Min EPS beat(4)-1.09%
Max EPS beat(4)6.96%
EPS beat(8)4
Avg EPS beat(8)1.62%
EPS beat(12)7
Avg EPS beat(12)5.35%
EPS beat(16)10
Avg EPS beat(16)5.04%
Revenue beat(2)2
Avg Revenue beat(2)6.5%
Min Revenue beat(2)4.73%
Max Revenue beat(2)8.27%
Revenue beat(4)2
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-11.28%
Max Revenue beat(4)8.27%
Revenue beat(8)2
Avg Revenue beat(8)-9.38%
Revenue beat(12)5
Avg Revenue beat(12)-3.72%
Revenue beat(16)9
Avg Revenue beat(16)0.52%
PT rev (1m)-0.35%
PT rev (3m)-0.03%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-3.3%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 19.21 | ||
| P/S | 2.79 | ||
| P/FCF | N/A | ||
| P/OCF | 10.24 | ||
| P/B | 2.67 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 13.87 |
EPS(TTM)3.44
EY4.6%
EPS(NY)3.89
Fwd EY5.21%
FCF(TTM)-3.53
FCFYN/A
OCF(TTM)7.3
OCFY9.77%
SpS26.78
BVpS28.04
TBVpS28.04
PEG (NY)2.56
PEG (5Y)3.59
Graham Number46.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 12.07% | ||
| ROCE | 4.65% | ||
| ROIC | 3.74% | ||
| ROICexc | 3.83% | ||
| ROICexgc | 3.83% | ||
| OM | 20% | ||
| PM (TTM) | 12.64% | ||
| GM | 71.26% | ||
| 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%
ROICexgc growth 3Y1.52%
ROICexgc 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-Score3
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.93 | ||
| Cap/Depr | 259.44% | ||
| Cap/Sales | 40.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.89 |
F-Score3
WACC6.64%
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)4.56%
EPS 3Y5.55%
EPS 5Y6.05%
EPS Q2Q%7.58%
EPS Next Y8.5%
EPS Next 2Y7.95%
EPS Next 3Y7.87%
EPS Next 5Y7.57%
Revenue 1Y (TTM)8.25%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%14.37%
Revenue Next Year2.84%
Revenue Next 2Y3.44%
Revenue Next 3Y3.65%
Revenue Next 5Y4.75%
EBIT growth 1Y16.84%
EBIT growth 3Y9.07%
EBIT growth 5Y3.72%
EBIT Next Year92.04%
EBIT Next 3Y32.08%
EBIT Next 5Y22.84%
FCF growth 1Y-8.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y45.64%
OCF growth 3Y9.22%
OCF growth 5Y5.77%
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.
Can you provide the valuation status for CMS ENERGY CORP?
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 6 / 10.
How financially healthy is CMS ENERGY CORP?
The financial health rating of CMS ENERGY CORP (CMS) is 2 / 10.
Can you provide the expected EPS growth for CMS stock?
The Earnings per Share (EPS) of CMS ENERGY CORP (CMS) is expected to grow by 8.5% in the next year.