CMS ENERGY CORP (CMS) Fundamental Analysis & Valuation

NYSE:CMS • US1258961002

Current stock price

76.64 USD
+0.37 (+0.49%)
Last:

This CMS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. CMS Profitability Analysis

1.1 Basic Checks

  • CMS had positive earnings in the past year.
  • In the past year CMS had a positive cash flow from operations.
  • Each year in the past 5 years CMS has been profitable.
  • CMS had a positive operating cash flow in each of the past 5 years.
CMS Yearly Net Income VS EBIT VS OCF VS FCFCMS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B

1.2 Ratios

  • CMS has a Return On Assets (2.66%) which is comparable to the rest of the industry.
  • The Return On Equity of CMS (11.60%) is better than 65.38% of its industry peers.
  • With a Return On Invested Capital value of 3.74%, CMS is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
  • CMS had an Average Return On Invested Capital over the past 3 years of 3.50%. This is in line with the industry average of 3.75%.
  • The last Return On Invested Capital (3.74%) for CMS is above the 3 year average (3.50%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.66%
ROE 11.6%
ROIC 3.74%
ROA(3y)2.68%
ROA(5y)3.07%
ROE(3y)11.76%
ROE(5y)13.48%
ROIC(3y)3.5%
ROIC(5y)3.46%
CMS Yearly ROA, ROE, ROICCMS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • The Profit Margin of CMS (12.43%) is comparable to the rest of the industry.
  • CMS's Profit Margin has improved in the last couple of years.
  • CMS has a worse Operating Margin (20.22%) than 65.38% of its industry peers.
  • In the last couple of years the Operating Margin of CMS has remained more or less at the same level.
  • CMS's Gross Margin of 69.45% is in line compared to the rest of the industry. CMS outperforms 57.69% of its industry peers.
  • CMS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.22%
PM (TTM) 12.43%
GM 69.45%
OM growth 3Y12.41%
OM growth 5Y-0.16%
PM growth 3Y8.9%
PM growth 5Y1.91%
GM growth 3Y3.81%
GM growth 5Y0.4%
CMS Yearly Profit, Operating, Gross MarginsCMS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. CMS Health Analysis

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.
  • 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 is higher compared to a year ago.
CMS Yearly Shares OutstandingCMS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
CMS Yearly Total Debt VS Total AssetsCMS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • CMS has an Altman-Z score of 0.90. This is a bad value and indicates that CMS is not financially healthy and even has some risk of bankruptcy.
  • With a decent Altman-Z score value of 0.90, CMS is doing good in the industry, outperforming 61.54% of the companies in the same industry.
  • A Debt/Equity ratio of 1.96 is on the high side and indicates that CMS has dependencies on debt financing.
  • CMS has a worse Debt to Equity ratio (1.96) than 73.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.96
Debt/FCF N/A
Altman-Z 0.9
ROIC/WACC0.57
WACC6.52%
CMS Yearly LT Debt VS Equity VS FCFCMS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.98 indicates that CMS may have some problems paying its short term obligations.
  • CMS has a Current ratio of 0.98. This is in the better half of the industry: CMS outperforms 65.38% of its industry peers.
  • A Quick Ratio of 0.76 indicates that CMS may have some problems paying its short term obligations.
  • CMS has a Quick ratio (0.76) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.76
CMS Yearly Current Assets VS Current LiabilitesCMS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. CMS Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.78% over the past year.
  • The Earnings Per Share has been growing slightly by 6.08% on average over the past years.
  • The Revenue has grown by 13.63% in the past year. This is quite good.
  • The Revenue has been growing slightly by 5.03% on average over the past years.
EPS 1Y (TTM)7.78%
EPS 3Y7.6%
EPS 5Y6.08%
EPS Q2Q%8.05%
Revenue 1Y (TTM)13.63%
Revenue growth 3Y-0.22%
Revenue growth 5Y5.03%
Sales Q2Q%12.27%

3.2 Future

  • Based on estimates for the next years, CMS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.02% on average per year.
  • CMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.47% yearly.
EPS Next Y8.74%
EPS Next 2Y8.3%
EPS Next 3Y8.14%
EPS Next 5Y8.02%
Revenue Next Year6.78%
Revenue Next 2Y5.72%
Revenue Next 3Y5.22%
Revenue Next 5Y6.47%

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.
CMS Yearly Revenue VS EstimatesCMS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
CMS Yearly EPS VS EstimatesCMS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1 2 3 4 5

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1

4. CMS Valuation Analysis

4.1 Price/Earnings Ratio

  • CMS is valuated rather expensively with a Price/Earnings ratio of 21.29.
  • 73.08% of the companies in the same industry are cheaper than CMS, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, CMS is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 19.58, CMS is valued on the expensive side.
  • 73.08% 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 (22.29), we can say CMS is valued inline with the index average.
Industry RankSector Rank
PE 21.29
Fwd PE 19.58
CMS Price Earnings VS Forward Price EarningsCMS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • CMS's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CMS is more expensive than 80.77% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.81
CMS Per share dataCMS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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.
PEG (NY)2.43
PEG (5Y)3.5
EPS Next 2Y8.3%
EPS Next 3Y8.14%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. CMS Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.98%, CMS has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 3.38, CMS is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.81, CMS pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.98%

5.2 History

  • The dividend of CMS is nicely growing with an annual growth rate of 6.09%!
  • CMS has paid a dividend for at least 10 years, which is a reliable track record.
  • CMS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.09%
Div Incr Years2
Div Non Decr Years2
CMS Yearly Dividends per shareCMS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • CMS pays out 62.49% of its income as dividend. This is not a sustainable payout ratio.
  • CMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.49%
EPS Next 2Y8.3%
EPS Next 3Y8.14%
CMS Yearly Income VS Free CF VS DividendCMS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B -1B -1.5B
CMS Dividend Payout.CMS Dividend Payout, showing the Payout Ratio.CMS Dividend Payout.PayoutRetained Earnings

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CMS Fundamentals: All Metrics, Ratios and Statistics

CMS ENERGY CORP

NYSE:CMS (4/27/2026, 10:54:05 AM)

76.64

+0.37 (+0.49%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners97.63%
Inst Owner Change0.17%
Ins Owners0.59%
Ins Owner Change3.74%
Market Cap23.61B
Revenue(TTM)8.54B
Net Income(TTM)1.06B
Analysts75.24
Price Target81.1 (5.82%)
Short Float %5.38%
Short Ratio5.34
Dividend
Industry RankSector Rank
Dividend Yield 2.98%
Yearly Dividend2.19
Dividend Growth(5Y)6.09%
DP62.49%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-17
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.85%
Min EPS beat(2)-1.18%
Max EPS beat(2)8.88%
EPS beat(4)2
Avg EPS beat(4)2.35%
Min EPS beat(4)-1.18%
Max EPS beat(4)8.88%
EPS beat(8)5
Avg EPS beat(8)2.8%
EPS beat(12)6
Avg EPS beat(12)1.5%
EPS beat(16)10
Avg EPS beat(16)5.18%
Revenue beat(2)2
Avg Revenue beat(2)12.91%
Min Revenue beat(2)8.42%
Max Revenue beat(2)17.4%
Revenue beat(4)4
Avg Revenue beat(4)9.71%
Min Revenue beat(4)4.73%
Max Revenue beat(4)17.4%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)5
Avg Revenue beat(12)-6.02%
Revenue beat(16)9
Avg Revenue beat(16)0.64%
PT rev (1m)0.95%
PT rev (3m)1.25%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)0.89%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.63%
Valuation
Industry RankSector Rank
PE 21.29
Fwd PE 19.58
P/S 2.76
P/FCF N/A
P/OCF 10.56
P/B 2.58
P/tB 2.58
EV/EBITDA 13.81
EPS(TTM)3.6
EY4.7%
EPS(NY)3.91
Fwd EY5.11%
FCF(TTM)-5.16
FCFYN/A
OCF(TTM)7.26
OCFY9.47%
SpS27.72
BVpS29.69
TBVpS29.69
PEG (NY)2.43
PEG (5Y)3.5
Graham Number49.0383 (-36.01%)
Profitability
Industry RankSector Rank
ROA 2.66%
ROE 11.6%
ROCE 4.75%
ROIC 3.74%
ROICexc 3.79%
ROICexgc 3.79%
OM 20.22%
PM (TTM) 12.43%
GM 69.45%
FCFM N/A
ROA(3y)2.68%
ROA(5y)3.07%
ROE(3y)11.76%
ROE(5y)13.48%
ROIC(3y)3.5%
ROIC(5y)3.46%
ROICexc(3y)3.53%
ROICexc(5y)3.49%
ROICexgc(3y)3.53%
ROICexgc(5y)3.49%
ROCE(3y)4.46%
ROCE(5y)4.4%
ROICexgc growth 3Y3.53%
ROICexgc growth 5Y-1.36%
ROICexc growth 3Y3.53%
ROICexc growth 5Y-1.36%
OM growth 3Y12.41%
OM growth 5Y-0.16%
PM growth 3Y8.9%
PM growth 5Y1.91%
GM growth 3Y3.81%
GM growth 5Y0.4%
F-Score5
Asset Turnover0.21
Health
Industry RankSector Rank
Debt/Equity 1.96
Debt/FCF N/A
Debt/EBITDA 5.92
Cap/Depr 292.8%
Cap/Sales 44.78%
Interest Coverage 2.33
Cash Conversion 73.69%
Profit Quality N/A
Current Ratio 0.98
Quick Ratio 0.76
Altman-Z 0.9
F-Score5
WACC6.52%
ROIC/WACC0.57
Cap/Depr(3y)246.72%
Cap/Depr(5y)227.47%
Cap/Sales(3y)39.07%
Cap/Sales(5y)34.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.78%
EPS 3Y7.6%
EPS 5Y6.08%
EPS Q2Q%8.05%
EPS Next Y8.74%
EPS Next 2Y8.3%
EPS Next 3Y8.14%
EPS Next 5Y8.02%
Revenue 1Y (TTM)13.63%
Revenue growth 3Y-0.22%
Revenue growth 5Y5.03%
Sales Q2Q%12.27%
Revenue Next Year6.78%
Revenue Next 2Y5.72%
Revenue Next 3Y5.22%
Revenue Next 5Y6.47%
EBIT growth 1Y16.14%
EBIT growth 3Y12.16%
EBIT growth 5Y4.86%
EBIT Next Year89.31%
EBIT Next 3Y31.51%
EBIT Next 5Y22.98%
FCF growth 1Y-145.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.7%
OCF growth 3Y37.75%
OCF growth 5Y11.86%

CMS ENERGY CORP / CMS Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CMS ENERGY CORP (CMS) stock?

ChartMill assigns a fundamental rating of 3 / 10 to CMS.


What is the valuation status of CMS ENERGY CORP (CMS) stock?

ChartMill assigns a valuation rating of 1 / 10 to CMS ENERGY CORP (CMS). This can be considered as Overvalued.


How profitable is CMS ENERGY CORP (CMS) stock?

CMS ENERGY CORP (CMS) has a profitability rating of 5 / 10.


How financially healthy is CMS ENERGY CORP?

The financial health rating of CMS ENERGY CORP (CMS) is 1 / 10.


How sustainable is the dividend of CMS ENERGY CORP (CMS) stock?

The dividend rating of CMS ENERGY CORP (CMS) is 5 / 10 and the dividend payout ratio is 62.49%.