CMS ENERGY CORP (CMS)
US1258961002 - Common Stock
Overall CMS gets a fundamental rating of 4 out of 10. We evaluated CMS against 26 industry peers in the Multi-Utilities industry. There are concerns on the financial health of CMS while its profitability can be described as average. CMS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CMS was profitable.
CMS had a positive operating cash flow in the past year.
Each year in the past 5 years CMS has been profitable.
In the past 5 years CMS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.83%, CMS is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
CMS's Return On Equity of 12.08% is amongst the best of the industry. CMS outperforms 84.62% of its industry peers.
CMS has a worse Return On Invested Capital (3.43%) than 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMS is in line with the industry average of 3.63%.
The last Return On Invested Capital (3.43%) for CMS is above the 3 year average (3.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 12.08% | ||
| ROIC | 3.43% |
ROA(3y)3.31%
ROA(5y)3%
ROE(3y)14.58%
ROE(5y)14.21%
ROIC(3y)3.43%
ROIC(5y)3.73%
1.3 Margins
CMS's Profit Margin of 13.05% is in line compared to the rest of the industry. CMS outperforms 53.85% of its industry peers.
In the last couple of years the Profit Margin of CMS has grown nicely.
CMS has a worse Operating Margin (18.13%) than 69.23% of its industry peers.
CMS's Operating Margin has been stable in the last couple of years.
The Gross Margin of CMS (71.06%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CMS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.13% | ||
| PM (TTM) | 13.05% | ||
| GM | 71.06% |
OM growth 3Y-6.72%
OM growth 5Y-0.42%
PM growth 3Y1.31%
PM growth 5Y4.22%
GM growth 3Y0.2%
GM growth 5Y1.62%
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.
CMS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that CMS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.87, CMS is doing good in the industry, outperforming 65.38% of the companies in the same industry.
A Debt/Equity ratio of 1.89 is on the high side and indicates that CMS has dependencies on debt financing.
CMS's Debt to Equity ratio of 1.89 is on the low side compared to the rest of the industry. CMS is outperformed by 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.87 |
ROIC/WACC0.51
WACC6.77%
2.3 Liquidity
A Current Ratio of 1.35 indicates that CMS should not have too much problems paying its short term obligations.
CMS's Current ratio of 1.35 is amongst the best of the industry. CMS outperforms 88.46% of its industry peers.
CMS has a Quick Ratio of 1.05. This is a normal value and indicates that CMS is financially healthy and should not expect problems in meeting its short term obligations.
CMS's Quick ratio of 1.05 is amongst the best of the industry. CMS outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
CMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.42%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.95% on average over the past years.
The Revenue for CMS has decreased by -13.54% in the past year. This is quite bad
CMS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.66% yearly.
EPS 1Y (TTM)41.42%
EPS 3Y5.09%
EPS 5Y5.95%
EPS growth Q2Q38.57%
Revenue 1Y (TTM)-13.54%
Revenue growth 3Y3.76%
Revenue growth 5Y1.66%
Revenue growth Q2Q-4.73%
3.2 Future
The Earnings Per Share is expected to grow by 7.69% on average over the next years.
Based on estimates for the next years, CMS will show a small growth in Revenue. The Revenue will grow by 1.79% on average per year.
EPS Next Y8.39%
EPS Next 2Y8.15%
EPS Next 3Y7.94%
EPS Next 5Y7.69%
Revenue Next Year-3.24%
Revenue Next 2Y-0.21%
Revenue Next 3Y1.36%
Revenue Next 5Y1.79%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.21, CMS is valued on the expensive side.
Based on the Price/Earnings ratio, CMS is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of CMS to the average of the S&P500 Index (27.73), we can say CMS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.92, the valuation of CMS can be described as correct.
Based on the Price/Forward Earnings ratio, CMS is valued a bit more expensive than 69.23% of the companies in the same industry.
CMS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMS is valued expensively inside the industry as 80.77% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CMS may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)3.06
EPS Next 2Y8.15%
EPS Next 3Y7.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.36%, CMS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.21, CMS is paying slightly less dividend.
CMS's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
5.2 History
On average, the dividend of CMS grows each year by 6.53%, which is quite nice.
CMS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.53%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
72.81% 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.
DP72.81%
EPS Next 2Y8.15%
EPS Next 3Y7.94%
CMS ENERGY CORP
NYSE:CMS (5/3/2024, 7:04:00 PM)
After market: 61.56 0 (0%)61.56
+0.29 (+0.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.17
PEG (5Y)3.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 12.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.13% | ||
| PM (TTM) | 13.05% | ||
| GM | 71.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)41.42%
EPS 3Y5.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.54%
Revenue growth 3Y3.76%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y