CMS ENERGY CORP (CMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMS - US1258961002 - Common Stock
70.43 USD
-0.09 (-0.13%)
70.43 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. While CMS has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, CMS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CMS had positive earnings in the past year.
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 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.
With a Return On Invested Capital value of 3.95%, CMS perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
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 3.94%.
The 3 year average ROIC (3.46%) for CMS is below the current ROIC(3.95%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of CMS has grown nicely.
With a Operating Margin value of 20.70%, CMS is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CMS has grown nicely.
CMS's Gross Margin of 70.26% is in line compared to the rest of the industry. CMS outperforms 57.69% of its industry peers.
CMS's Gross Margin has improved in the last couple of years.
| 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
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.
The debt/assets ratio for CMS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that CMS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CMS (0.88) is better than 61.54% of its industry peers.
CMS has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.91, CMS is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.61
WACC6.48%
2.3 Liquidity
A Current Ratio of 0.90 indicates that CMS may have some problems paying its short term obligations.
CMS has a Current ratio of 0.90. This is in the lower half of the industry: CMS underperforms 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
CMS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.28%.
The Earnings Per Share has been growing slightly by 6.05% on average over the past years.
Looking at the last year, CMS shows a quite strong growth in Revenue. The Revenue has grown by 10.96% in the last year.
The Revenue has been growing slightly by 1.89% on average over the past years.
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 7.58% on average per year.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y8.59%
EPS Next 2Y7.95%
EPS Next 3Y7.93%
EPS Next 5Y7.58%
Revenue Next Year3.18%
Revenue Next 2Y3.47%
Revenue Next 3Y3.69%
Revenue Next 5Y4.66%
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
CMS is valuated rather expensively with a Price/Earnings ratio of 19.95.
CMS's Price/Earnings ratio is rather expensive when compared to the industry. CMS is more expensive than 80.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.28. CMS is valued slightly cheaper when compared to this.
CMS is valuated rather expensively with a Price/Forward Earnings ratio of 18.09.
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 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.95 | ||
| Fwd PE | 18.09 |
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 73.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.02 |
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)2.32
PEG (5Y)3.3
EPS Next 2Y7.95%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
CMS has a Yearly Dividend Yield of 3.03%.
Compared to an average industry Dividend Yield of 3.54, CMS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, CMS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
On average, the dividend of CMS grows each year by 6.54%, which is quite nice.
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
62.87% of the earnings are spent on dividend by CMS. This is not a sustainable payout ratio.
CMS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP62.87%
EPS Next 2Y7.95%
EPS Next 3Y7.93%
70.43
-0.09 (-0.13%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.59%
Inst Owner Change1.12%
Ins Owners0.55%
Ins Owner Change-0.24%
Market Cap21.43B
Revenue(TTM)8.29B
Net Income(TTM)1.04B
Analysts75.24
Price Target80.21 (13.89%)
Short Float %3.94%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend2.11
Dividend Growth(5Y)6.54%
DP62.87%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.49%
Min EPS beat(2)2.11%
Max EPS beat(2)8.88%
EPS beat(4)2
Avg EPS beat(4)2.37%
Min EPS beat(4)-1.09%
Max EPS beat(4)8.88%
EPS beat(8)5
Avg EPS beat(8)2.87%
EPS beat(12)7
Avg EPS beat(12)5.97%
EPS beat(16)11
Avg EPS beat(16)5.61%
Revenue beat(2)2
Avg Revenue beat(2)6.58%
Min Revenue beat(2)4.73%
Max Revenue beat(2)8.42%
Revenue beat(4)3
Avg Revenue beat(4)2.54%
Min Revenue beat(4)-11.28%
Max Revenue beat(4)8.42%
Revenue beat(8)3
Avg Revenue beat(8)-5.65%
Revenue beat(12)5
Avg Revenue beat(12)-4.25%
Revenue beat(16)9
Avg Revenue beat(16)0.59%
PT rev (1m)0.79%
PT rev (3m)3.31%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)-6.11%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.34%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.95 | ||
| Fwd PE | 18.09 | ||
| P/S | 2.58 | ||
| P/FCF | N/A | ||
| P/OCF | 9.92 | ||
| P/B | 2.42 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 13.02 |
EPS(TTM)3.53
EY5.01%
EPS(NY)3.89
Fwd EY5.53%
FCF(TTM)-4.96
FCFYN/A
OCF(TTM)7.1
OCFY10.08%
SpS27.26
BVpS29.13
TBVpS29.13
PEG (NY)2.32
PEG (5Y)3.3
Graham Number48.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 11.7% | ||
| ROCE | 4.91% | ||
| ROIC | 3.95% | ||
| ROICexc | 3.99% | ||
| ROICexgc | 3.99% | ||
| OM | 20.7% | ||
| PM (TTM) | 12.5% | ||
| GM | 70.26% | ||
| 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-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.62 | ||
| Cap/Depr | 284.34% | ||
| Cap/Sales | 44.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.88 |
F-Score5
WACC6.48%
ROIC/WACC0.61
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)0.28%
EPS 3Y5.55%
EPS 5Y6.05%
EPS Q2Q%10.71%
EPS Next Y8.59%
EPS Next 2Y7.95%
EPS Next 3Y7.93%
EPS Next 5Y7.58%
Revenue 1Y (TTM)10.96%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%15.95%
Revenue Next Year3.18%
Revenue Next 2Y3.47%
Revenue Next 3Y3.69%
Revenue Next 5Y4.66%
EBIT growth 1Y16.96%
EBIT growth 3Y9.07%
EBIT growth 5Y3.72%
EBIT Next Year93.89%
EBIT Next 3Y32.47%
EBIT Next 5Y23.09%
FCF growth 1Y-339.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.25%
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 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.
How financially healthy is CMS ENERGY CORP?
The financial health rating of CMS ENERGY CORP (CMS) is 1 / 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 8.59% in the next year.