CMS ENERGY CORP (CMS) Stock Fundamental Analysis
NYSE:CMS - New York Stock Exchange, Inc. - US1258961002 - Common Stock - Currency: USD
Taking everything into account, CMS scores 4 out of 10 in our fundamental rating. CMS was compared to 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. While showing a medium growth rate, CMS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CMS was profitable.
In the past year CMS had a positive cash flow from operations.
In the past 5 years CMS has always been profitable.
In the past 5 years CMS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.78%, CMS perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
With a decent Return On Equity value of 12.12%, CMS is doing good in the industry, outperforming 68.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.75%, CMS is doing worse than 68.00% 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 3.93%.
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
The Profit Margin of CMS (12.97%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CMS has grown nicely.
The Operating Margin of CMS (20.15%) is worse than 64.00% of its industry peers.
CMS's Operating Margin has improved in the last couple of years.
CMS has a Gross Margin of 72.49%. This is comparable to the rest of the industry: CMS outperforms 56.00% of its industry peers.
CMS's Gross Margin has improved in the last couple of years.
| 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
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
The number of shares outstanding for CMS has been increased compared to 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 0.89, we must say that CMS is in the distress zone and has some risk of bankruptcy.
CMS has a better Altman-Z score (0.89) than 72.00% of its industry peers.
A Debt/Equity ratio of 1.95 is on the high side and indicates that CMS has dependencies on debt financing.
CMS's Debt to Equity ratio of 1.95 is on the low side compared to the rest of the industry. CMS is outperformed by 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.56
WACC6.7%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CMS should not have too much problems paying its short term obligations.
CMS has a Current ratio of 1.06. This is in the better half of the industry: CMS outperforms 68.00% of its industry peers.
A Quick Ratio of 0.84 indicates that CMS may have some problems paying its short term obligations.
CMS's Quick ratio of 0.84 is fine compared to the rest of the industry. CMS outperforms 68.00% 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.
The Earnings Per Share has been growing slightly by 6.05% on average over the past years.
The Revenue has been growing slightly by 5.87% in the past 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)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.
CMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.45% yearly.
EPS Next Y8.49%
EPS Next 2Y8%
EPS Next 3Y7.9%
EPS Next 5Y7.48%
Revenue Next Year1.33%
Revenue Next 2Y2.72%
Revenue Next 3Y3.17%
Revenue Next 5Y4.45%
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.
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 20.79, CMS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CMS indicates a slightly more expensive valuation: CMS is more expensive than 76.00% of the companies listed in the same industry.
CMS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
A Price/Forward Earnings ratio of 18.09 indicates a rather expensive valuation of CMS.
72.00% of the companies in the same industry are cheaper than CMS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CMS to the average of the S&P500 Index (21.76), we can say CMS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 18.09 |
4.2 Price Multiples
CMS's Enterprise Value to EBITDA 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.2 |
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)2.45
PEG (5Y)3.44
EPS Next 2Y8%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
CMS has a Yearly Dividend Yield of 3.14%. Purely for dividend investing, there may be better candidates out there.
CMS's Dividend Yield is slightly below the industry average, which is at 4.00.
CMS's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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.
CMS has decreased its dividend 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.
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.
DP62.97%
EPS Next 2Y8%
EPS Next 3Y7.9%
70.47
+0.78 (+1.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.09%
Inst Owner Change1.37%
Ins Owners0.56%
Ins Owner Change4.28%
Market Cap21.08B
Analysts75.65
Price Target77.14 (9.47%)
Short Float %3.59%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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)-0.75%
Min EPS beat(2)-1.09%
Max EPS beat(2)-0.41%
EPS beat(4)2
Avg EPS beat(4)2.48%
Min EPS beat(4)-1.09%
Max EPS beat(4)6.96%
EPS beat(8)4
Avg EPS beat(8)2.18%
EPS beat(12)7
Avg EPS beat(12)5.55%
EPS beat(16)10
Avg EPS beat(16)6.97%
Revenue beat(2)1
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-11.28%
Max Revenue beat(2)8.27%
Revenue beat(4)1
Avg Revenue beat(4)-5.11%
Min Revenue beat(4)-11.28%
Max Revenue beat(4)8.27%
Revenue beat(8)1
Avg Revenue beat(8)-13.04%
Revenue beat(12)5
Avg Revenue beat(12)-2.7%
Revenue beat(16)9
Avg Revenue beat(16)0.41%
PT rev (1m)-0.35%
PT rev (3m)3.45%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 18.09 | ||
| P/S | 2.71 | ||
| P/FCF | N/A | ||
| P/OCF | 8.73 | ||
| P/B | 2.53 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | 13.2 |
EPS(TTM)3.39
EY4.81%
EPS(NY)3.9
Fwd EY5.53%
FCF(TTM)-2.94
FCFYN/A
OCF(TTM)8.07
OCFY11.45%
SpS26.03
BVpS27.87
TBVpS27.87
PEG (NY)2.45
PEG (5Y)3.44
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 | 0.89 |
F-Score4
WACC6.7%
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 Y8.49%
EPS Next 2Y8%
EPS Next 3Y7.9%
EPS Next 5Y7.48%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%12.45%
Revenue Next Year1.33%
Revenue Next 2Y2.72%
Revenue Next 3Y3.17%
Revenue Next 5Y4.45%
EBIT growth 1Y17.7%
EBIT growth 3Y9.07%
EBIT growth 5Y3.72%
EBIT Next Year95.74%
EBIT Next 3Y32.92%
EBIT Next 5Y23.04%
FCF growth 1Y31.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y103.2%
OCF growth 3Y9.22%
OCF growth 5Y5.77%