CMS ENERGY CORP (CMS) Stock Fundamental Analysis
NYSE:CMS - US1258961002 - Common Stock
73.12 USD
+0.34 (+0.47%)
73.12 USD
0 (0%)
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. There are concerns on the financial health of CMS while its profitability can be described as average. 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.
CMS had a positive operating cash flow in the past year.
In the past 5 years CMS has always been profitable.
CMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CMS has a Return On Assets (2.69%) which is in line with its industry peers.
CMS has a Return On Equity of 12.07%. This is in the better half of the industry: CMS outperforms 68.00% of its industry peers.
The Return On Invested Capital of CMS (3.74%) is worse than 68.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CMS is in line with the industry average of 3.89%.
The 3 year average ROIC (3.46%) for CMS is below the current ROIC(3.74%), indicating increased profibility in the last year.
| 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 (12.64%) which is in line with 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.
Looking at the Gross Margin, with a value of 71.26%, CMS is in line with its industry, outperforming 56.00% of the companies in the same 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.
Compared to 1 year ago, CMS has more shares outstanding
CMS has more shares outstanding than it did 5 years ago.
CMS has a better debt/assets ratio than last year.
2.2 Solvency
CMS has an Altman-Z score of 0.88. This is a bad value and indicates that CMS is not financially healthy and even has some risk of bankruptcy.
CMS has a better Altman-Z score (0.88) than 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.
With a Debt to Equity ratio value of 2.02, CMS is not doing good in the industry: 92.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.55
WACC6.8%
2.3 Liquidity
A Current Ratio of 1.00 indicates that CMS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, CMS is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that CMS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, CMS is in the better half of 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
The Earnings Per Share has been growing slightly by 4.56% over the past year.
CMS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.05% yearly.
The Revenue has grown by 8.25% in the past year. This is quite good.
The Revenue has been growing slightly by 1.89% on average over the past years.
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
Based on estimates for the next years, CMS will show a small growth in Earnings Per Share. The EPS will grow by 7.59% on average per year.
Based on estimates for the next years, CMS will show a small growth in Revenue. The Revenue will grow by 4.50% on average per year.
EPS Next Y8.44%
EPS Next 2Y7.99%
EPS Next 3Y7.9%
EPS Next 5Y7.59%
Revenue Next Year1.67%
Revenue Next 2Y2.88%
Revenue Next 3Y3.33%
Revenue Next 5Y4.5%
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 21.26, CMS is valued on the expensive side.
Based on the Price/Earnings ratio, CMS is valued a bit more expensive than 76.00% of the companies in the same industry.
CMS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 18.77, the valuation of CMS can be described as rather expensive.
68.00% of the companies in the same industry are cheaper than CMS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, CMS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.26 | ||
| Fwd PE | 18.77 |
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 | 13.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CMS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)3.51
EPS Next 2Y7.99%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
CMS has a Yearly Dividend Yield of 2.99%.
Compared to an average industry Dividend Yield of 3.61, CMS is paying slightly less dividend.
CMS's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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.
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 2Y7.99%
EPS Next 3Y7.9%
73.12
+0.34 (+0.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.16%
Inst Owner Change-0.29%
Ins Owners0.56%
Ins Owner Change0.29%
Market Cap21.87B
Analysts75.45
Price Target78.02 (6.7%)
Short Float %3.45%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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)1.14%
PT rev (3m)0.79%
EPS NQ rev (1m)-2.28%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.26 | ||
| Fwd PE | 18.77 | ||
| P/S | 2.73 | ||
| P/FCF | N/A | ||
| P/OCF | 10.01 | ||
| P/B | 2.61 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 13.66 |
EPS(TTM)3.44
EY4.7%
EPS(NY)3.9
Fwd EY5.33%
FCF(TTM)-3.53
FCFYN/A
OCF(TTM)7.31
OCFY9.99%
SpS26.8
BVpS28.06
TBVpS28.06
PEG (NY)2.52
PEG (5Y)3.51
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
WACC6.8%
ROIC/WACC0.55
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 Y8.44%
EPS Next 2Y7.99%
EPS Next 3Y7.9%
EPS Next 5Y7.59%
Revenue 1Y (TTM)8.25%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%14.37%
Revenue Next Year1.67%
Revenue Next 2Y2.88%
Revenue Next 3Y3.33%
Revenue Next 5Y4.5%
EBIT growth 1Y16.84%
EBIT growth 3Y9.07%
EBIT growth 5Y3.72%
EBIT Next Year94.38%
EBIT Next 3Y32.6%
EBIT Next 5Y22.86%
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%