CMS ENERGY CORP (CMS) Stock Fundamental Analysis
USA - NYSE:CMS - US1258961002 - Common Stock
72.34 USD
+0.51 (+0.71%)
72.34 USD
0 (0%)
Overall CMS gets a fundamental rating of 4 out of 10. We evaluated CMS against 25 industry peers in the Multi-Utilities industry. While CMS is still in line with the averages on profitability rating, there are concerns on its financial health. CMS is valied quite expensively at the moment, while it does show a decent growth rate. CMS also has an excellent dividend rating.
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.
Each year in the past 5 years CMS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CMS (2.69%) is comparable to the rest of the industry.
CMS's Return On Equity of 12.07% is fine compared to the rest of the industry. CMS outperforms 68.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.74%, CMS is doing worse than 60.00% 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 3.82%.
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 has a Profit Margin of 12.64%. This is comparable to the rest of the industry: CMS outperforms 48.00% of its industry peers.
CMS's Profit Margin has improved in the last couple of years.
CMS's Operating Margin of 20.00% is on the low side compared to the rest of the industry. CMS is outperformed by 64.00% of its industry peers.
CMS's Operating Margin has improved in the last couple of years.
The Gross Margin of CMS (71.26%) 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CMS is destroying value.
CMS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CMS has more shares outstanding
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.
CMS's Altman-Z score of 0.88 is fine compared to the rest of the industry. CMS outperforms 64.00% of its industry peers.
A Debt/Equity ratio of 2.02 is on the high side and indicates that CMS has dependencies on debt financing.
CMS has a worse Debt to Equity ratio (2.02) than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.56
WACC6.66%
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.
The Current ratio of CMS (1.00) is better than 68.00% of its industry peers.
A Quick Ratio of 0.77 indicates that CMS may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.77, CMS is doing good in the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
CMS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.56%.
CMS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.05% yearly.
CMS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.25%.
Measured over the past years, CMS shows a small growth in Revenue. The Revenue has been growing by 1.89% on average per year.
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
CMS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.57% yearly.
Based on estimates for the next years, CMS will show a small growth in Revenue. The Revenue will grow by 4.75% on average per year.
EPS Next Y8.5%
EPS Next 2Y7.97%
EPS Next 3Y7.89%
EPS Next 5Y7.57%
Revenue Next Year2.69%
Revenue Next 2Y3.33%
Revenue Next 3Y3.58%
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
Based on the Price/Earnings ratio of 21.03, the valuation of CMS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CMS indicates a slightly more expensive valuation: CMS is more expensive than 72.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CMS to the average of the S&P500 Index (27.86), we can say CMS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.58, the valuation of CMS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CMS is valued a bit more expensive than 72.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. CMS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.03 | ||
| Fwd PE | 18.58 |
4.2 Price Multiples
76.00% of the companies in the same industry are cheaper than CMS, based on the Enterprise Value to EBITDA ratio.
| 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.
The decent profitability rating of CMS may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)3.48
EPS Next 2Y7.97%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.14%, CMS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.40, CMS pays a better dividend. On top of this CMS pays more dividend than 88.00% of the companies listed in the same industry.
CMS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
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.
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.
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.
DP71.96%
EPS Next 2Y7.97%
EPS Next 3Y7.89%
72.34
+0.51 (+0.71%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners101.05%
Inst Owner Change-0.29%
Ins Owners0.56%
Ins Owner Change0.39%
Market Cap21.65B
Analysts76
Price Target77.37 (6.95%)
Short Float %4.24%
Short Ratio5.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
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)0.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.86%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.03 | ||
| Fwd PE | 18.58 | ||
| P/S | 2.7 | ||
| P/FCF | N/A | ||
| P/OCF | 9.91 | ||
| P/B | 2.58 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 13.62 |
EPS(TTM)3.44
EY4.76%
EPS(NY)3.89
Fwd EY5.38%
FCF(TTM)-3.53
FCFYN/A
OCF(TTM)7.3
OCFY10.1%
SpS26.78
BVpS28.04
TBVpS28.04
PEG (NY)2.47
PEG (5Y)3.48
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%
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-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 | 0.88 |
F-Score3
WACC6.66%
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 2Y7.97%
EPS Next 3Y7.89%
EPS Next 5Y7.57%
Revenue 1Y (TTM)8.25%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%14.37%
Revenue Next Year2.69%
Revenue Next 2Y3.33%
Revenue Next 3Y3.58%
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%