CMS ENERGY CORP (CMS) Stock Fundamental Analysis
USA - NYSE:CMS - US1258961002 - Common Stock
74.46 USD
+0.52 (+0.7%)
74.46 USD
0 (0%)
Taking everything into account, CMS scores 4 out of 10 in our fundamental rating. CMS was compared to 26 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. 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.
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.
1.2 Ratios
The Return On Assets of CMS (2.73%) is better than 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 11.70%, CMS belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
With a Return On Invested Capital value of 3.95%, CMS is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
CMS had an Average Return On Invested Capital over the past 3 years of 3.46%. This is in line with the industry average of 3.96%.
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 has a Profit Margin (12.50%) which 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 (20.70%) is worse than 65.38% of its industry peers.
In the last couple of years the Operating Margin of CMS has grown nicely.
CMS has a Gross Margin (70.26%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CMS has grown nicely.
| 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.
Compared to 1 year ago, CMS has more shares outstanding
Compared to 5 years ago, CMS has more shares outstanding
CMS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that CMS is in the distress zone and has some risk of bankruptcy.
CMS has a Altman-Z score of 0.90. This is in the better half of the industry: CMS outperforms 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.
CMS has a worse Debt to Equity ratio (1.91) than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.61
WACC6.51%
2.3 Liquidity
CMS has a Current Ratio of 0.90. This is a bad value and indicates that CMS is not financially healthy enough and could expect problems in meeting its short term obligations.
CMS's Current ratio of 0.90 is on the low side compared to the rest of the industry. CMS is outperformed by 69.23% of its industry peers.
CMS has a Quick Ratio of 0.90. This is a bad value and indicates that CMS is not financially healthy enough and could expect problems in meeting 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
The Earnings Per Share has been growing slightly by 0.28% over the past year.
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
The Earnings Per Share is expected to grow by 7.58% on average over the next years.
CMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.66% yearly.
EPS Next Y8.48%
EPS Next 2Y7.9%
EPS Next 3Y7.87%
EPS Next 5Y7.58%
Revenue Next Year2.8%
Revenue Next 2Y3.47%
Revenue Next 3Y3.72%
Revenue Next 5Y4.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 21.09, CMS is valued on the expensive side.
Based on the Price/Earnings ratio, CMS is valued a bit more expensive than 76.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.56. CMS is around the same levels.
A Price/Forward Earnings ratio of 19.15 indicates a rather expensive valuation of CMS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CMS indicates a slightly more expensive valuation: CMS is more expensive than 73.08% of the companies listed in the same industry.
CMS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 19.15 |
4.2 Price Multiples
73.08% 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 | 13.3 |
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)2.49
PEG (5Y)3.49
EPS Next 2Y7.9%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
CMS has a Yearly Dividend Yield of 2.94%.
CMS's Dividend Yield is slightly below the industry average, which is at 4.19.
Compared to an average S&P500 Dividend Yield of 2.44, CMS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of CMS is nicely growing with an annual growth rate of 6.54%!
CMS has paid a dividend for at least 10 years, which is 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
62.87% of the earnings are spent on dividend by CMS. This is not a sustainable payout ratio.
The dividend of CMS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP62.87%
EPS Next 2Y7.9%
EPS Next 3Y7.87%
74.46
+0.52 (+0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners101.05%
Inst Owner Change1.1%
Ins Owners0.56%
Ins Owner Change-0.48%
Market Cap22.29B
Revenue(TTM)8.29B
Net Income(TTM)1.04B
Analysts75.24
Price Target79.58 (6.88%)
Short Float %3.18%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)2.86%
PT rev (3m)2%
EPS NQ rev (1m)-7.96%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)8.34%
Revenue NQ rev (3m)8.34%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 19.15 | ||
| P/S | 2.69 | ||
| P/FCF | N/A | ||
| P/OCF | 10.32 | ||
| P/B | 2.51 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 13.3 |
EPS(TTM)3.53
EY4.74%
EPS(NY)3.89
Fwd EY5.22%
FCF(TTM)-5.04
FCFYN/A
OCF(TTM)7.22
OCFY9.69%
SpS27.71
BVpS29.61
TBVpS29.61
PEG (NY)2.49
PEG (5Y)3.49
Graham Number48.5
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 | 0.9 |
F-Score5
WACC6.51%
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 Y8.48%
EPS Next 2Y7.9%
EPS Next 3Y7.87%
EPS Next 5Y7.58%
Revenue 1Y (TTM)10.96%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%15.95%
Revenue Next Year2.8%
Revenue Next 2Y3.47%
Revenue Next 3Y3.72%
Revenue Next 5Y4.66%
EBIT growth 1Y16.96%
EBIT growth 3Y9.07%
EBIT growth 5Y3.72%
EBIT Next Year92.04%
EBIT Next 3Y32.08%
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 1 / 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 6 / 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 8.48% in the next year.