CMS ENERGY CORP (CMS) Fundamental Analysis & Valuation
NYSE:CMS • US1258961002
77.16 USD
-0.04 (-0.05%)
At close: Mar 6, 2026
77.16 USD
0 (0%)
After Hours: 3/6/2026, 8:09:04 PM
This CMS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, CMS scores 3 out of 10 in our fundamental rating. CMS was compared to 26 industry peers in the Multi-Utilities industry. CMS has a medium profitability rating, but doesn't score so well on its financial health evaluation. CMS is quite expensive at the moment. It does show a decent growth rate.
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.
- Each year in the past 5 years CMS had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.66%, CMS is in line with its industry, outperforming 46.15% of the companies in the same industry.
- With a decent Return On Equity value of 11.60%, CMS is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- CMS's Return On Invested Capital of 3.74% is on the low side compared to the rest of the industry. CMS is outperformed by 65.38% 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 3.76%.
- 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 Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 12.43%, CMS is in line with its industry, outperforming 50.00% of the companies in the same industry.
- CMS's Profit Margin has improved in the last couple of years.
- CMS's Operating Margin of 20.22% is on the low side compared to the rest of the industry. CMS is outperformed by 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 has a Gross Margin of 69.45%. This is comparable to the rest of the industry: CMS outperforms 57.69% of its industry peers.
- In the last couple of years the Gross Margin of CMS has remained more or less at the same level.
| Industry Rank | Sector 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%
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.
- 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
- 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.
- CMS has a better Altman-Z score (0.90) than 61.54% of its industry peers.
- CMS has a Debt/Equity ratio of 1.96. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.96, CMS is doing worse than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.58
WACC6.41%
2.3 Liquidity
- CMS has a Current Ratio of 0.98. 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 decent Current ratio value of 0.98, CMS is doing good in the industry, outperforming 65.38% of the companies in the same industry.
- A Quick Ratio of 0.76 indicates that CMS may have some problems paying its short term obligations.
- The Quick ratio of CMS (0.76) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.76 |
3. CMS Growth Analysis
3.1 Past
- CMS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.78%.
- CMS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.08% yearly.
- The Revenue has grown by 13.63% in the past year. This is quite good.
- Measured over the past years, CMS shows a small growth in Revenue. The Revenue has been growing by 5.03% on average per year.
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
- The Earnings Per Share is expected to grow by 8.04% on average over the next years. This is quite good.
- Based on estimates for the next years, CMS will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y8.17%
EPS Next 2Y8.03%
EPS Next 3Y7.88%
EPS Next 5Y8.04%
Revenue Next Year6.65%
Revenue Next 2Y5.68%
Revenue Next 3Y5.36%
Revenue Next 5Y5.53%
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 stable: in the next years the growth will be about the same than in the last years.
4. CMS Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 21.43 indicates a rather expensive valuation of CMS.
- Compared to the rest of the industry, the Price/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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.29.
- With a Price/Forward Earnings ratio of 19.81, CMS is valued on the expensive side.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 24.57. CMS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 19.81 |
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 | 13.81 |
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)2.62
PEG (5Y)3.53
EPS Next 2Y8.03%
EPS Next 3Y7.88%
5. CMS Dividend Analysis
5.1 Amount
- CMS has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
- CMS's Dividend Yield is slightly below the industry average, which is at 3.65.
- Compared to an average S&P500 Dividend Yield of 1.82, CMS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
- On average, the dividend of CMS grows each year by 6.09%, 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)6.09%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 62.49% of the earnings are spent on dividend by CMS. This is not a sustainable payout ratio.
- The dividend of CMS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.49%
EPS Next 2Y8.03%
EPS Next 3Y7.88%
CMS Fundamentals: All Metrics, Ratios and Statistics
77.16
-0.04 (-0.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)04-22 2026-04-22/bmo
Inst Owners99.05%
Inst Owner Change0.1%
Ins Owners0.55%
Ins Owner Change4.1%
Market Cap23.48B
Revenue(TTM)8.54B
Net Income(TTM)1.06B
Analysts75.24
Price Target80.33 (4.11%)
Short Float %4.84%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend2.19
Dividend Growth(5Y)6.09%
DP62.49%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-17 2026-02-17 (0.57)
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)0.29%
PT rev (3m)0.55%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-4.91%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 19.81 | ||
| P/S | 2.75 | ||
| P/FCF | N/A | ||
| P/OCF | 10.51 | ||
| P/B | 2.57 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 13.81 |
EPS(TTM)3.6
EY4.67%
EPS(NY)3.89
Fwd EY5.05%
FCF(TTM)-5.22
FCFYN/A
OCF(TTM)7.34
OCFY9.52%
SpS28.06
BVpS30.05
TBVpS30.05
PEG (NY)2.62
PEG (5Y)3.53
Graham Number49.33
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC6.41%
ROIC/WACC0.58
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 Y8.17%
EPS Next 2Y8.03%
EPS Next 3Y7.88%
EPS Next 5Y8.04%
Revenue 1Y (TTM)13.63%
Revenue growth 3Y-0.22%
Revenue growth 5Y5.03%
Sales Q2Q%12.27%
Revenue Next Year6.65%
Revenue Next 2Y5.68%
Revenue Next 3Y5.36%
Revenue Next 5Y5.53%
EBIT growth 1Y16.14%
EBIT growth 3Y12.16%
EBIT growth 5Y4.86%
EBIT Next Year87.68%
EBIT Next 3Y30.75%
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 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.
What is the profitability of CMS stock?
CMS ENERGY CORP (CMS) has a profitability rating of 5 / 10.
What are the PE and PB ratios of CMS ENERGY CORP (CMS) stock?
The Price/Earnings (PE) ratio for CMS ENERGY CORP (CMS) is 21.43 and the Price/Book (PB) ratio is 2.57.
What is the expected EPS growth for CMS ENERGY CORP (CMS) stock?
The Earnings per Share (EPS) of CMS ENERGY CORP (CMS) is expected to grow by 8.17% in the next year.