CMS ENERGY CORP - CMS 5 7/8 10/15/2078 (CMSC) Stock Fundamental Analysis
USA - NYSE:CMSC - US1258968528
24.25 USD
-0.08 (-0.33%)
We assign a fundamental rating of 5 out of 10 to CMSC. CMSC was compared to 25 industry peers in the Multi-Utilities industry. CMSC has an excellent profitability rating, but there are concerns on its financial health. CMSC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CMSC had positive earnings in the past year.
In the past year CMSC had a positive cash flow from operations.
Each year in the past 5 years CMSC has been profitable.
CMSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.69%, CMSC is in line with its industry, outperforming 56.00% of the companies in the same industry.
CMSC has a Return On Equity of 12.07%. This is in the better half of the industry: CMSC outperforms 76.00% of its industry peers.
CMSC has a Return On Invested Capital (3.74%) which is in line with its industry peers.
CMSC had an Average Return On Invested Capital over the past 3 years of 3.46%. This is in line with the industry average of 3.82%.
The last Return On Invested Capital (3.74%) for CMSC is above the 3 year average (3.46%), which is a sign of increasing profitability.
| 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
CMSC has a Profit Margin (12.64%) which is in line with its industry peers.
CMSC's Profit Margin has improved in the last couple of years.
CMSC has a Operating Margin (20.00%) which is comparable to the rest of the industry.
CMSC's Operating Margin has improved in the last couple of years.
CMSC has a better Gross Margin (71.26%) than 64.00% of its industry peers.
In the last couple of years the Gross Margin of CMSC has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CMSC is destroying value.
Compared to 1 year ago, CMSC has more shares outstanding
Compared to 5 years ago, CMSC has more shares outstanding
CMSC has a better debt/assets ratio than last year.
2.2 Solvency
CMSC has an Altman-Z score of 0.58. This is a bad value and indicates that CMSC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CMSC (0.58) is worse than 80.00% of its industry peers.
A Debt/Equity ratio of 2.02 is on the high side and indicates that CMSC has dependencies on debt financing.
CMSC has a worse Debt to Equity ratio (2.02) than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.58 |
ROIC/WACC0.71
WACC5.3%
2.3 Liquidity
CMSC has a Current Ratio of 1.00. This is a bad value and indicates that CMSC is not financially healthy enough and could expect problems in meeting its short term obligations.
CMSC has a Current ratio of 1.00. This is in the better half of the industry: CMSC outperforms 76.00% of its industry peers.
A Quick Ratio of 0.77 indicates that CMSC may have some problems paying its short term obligations.
CMSC has a better Quick ratio (0.77) than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
CMSC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.56%.
The Earnings Per Share has been growing slightly by 6.05% on average over the past years.
The Revenue has grown by 8.25% in the past year. This is quite good.
CMSC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.89% yearly.
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, CMSC will show a small growth in Earnings Per Share. The EPS will grow by 7.60% on average per year.
Based on estimates for the next years, CMSC will show a small growth in Revenue. The Revenue will grow by 4.67% on average per year.
EPS Next Y8.4%
EPS Next 2Y7.91%
EPS Next 3Y7.87%
EPS Next 5Y7.6%
Revenue Next Year2.73%
Revenue Next 2Y3.36%
Revenue Next 3Y3.58%
Revenue Next 5Y4.67%
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.
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
The Price/Earnings ratio is 7.05, which indicates a rather cheap valuation of CMSC.
Based on the Price/Earnings ratio, CMSC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
CMSC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
With a Price/Forward Earnings ratio of 6.23, the valuation of CMSC can be described as very cheap.
Based on the Price/Forward Earnings ratio, CMSC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
CMSC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 6.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CMSC indicates a somewhat cheap valuation: CMSC is cheaper than 76.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
CMSC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CMSC may justify a higher PE ratio.
PEG (NY)0.84
PEG (5Y)1.17
EPS Next 2Y7.91%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
CMSC has a Yearly Dividend Yield of 3.03%.
Compared to an average industry Dividend Yield of 3.64, CMSC's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than CMSC!
CMSC's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
The dividend of CMSC is nicely growing with an annual growth rate of 6.54%!
CMSC has been paying a dividend for over 5 years, so it has already some track record.
CMSC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.54%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
CMSC pays out 71.96% of its income as dividend. This is not a sustainable payout ratio.
CMSC'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 2Y7.91%
EPS Next 3Y7.87%
CMS ENERGY CORP - CMS 5 7/8 10/15/2078
NYSE:CMSC (9/19/2025, 8:04:00 PM)
24.25
-0.08 (-0.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.16%
Inst Owner ChangeN/A
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap7.26B
Analysts75.24
Price Target26.41 (8.91%)
Short Float %0.01%
Short Ratio0.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend2.11
Dividend Growth(5Y)6.54%
DP71.96%
Div Incr Years2
Div Non Decr Years4
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)9.56%
PT rev (3m)8.21%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 6.23 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 3.32 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 8.58 |
EPS(TTM)3.44
EY14.19%
EPS(NY)3.89
Fwd EY16.04%
FCF(TTM)-3.53
FCFYN/A
OCF(TTM)7.3
OCFY30.11%
SpS26.78
BVpS28.04
TBVpS28.04
PEG (NY)0.84
PEG (5Y)1.17
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 | 0.58 |
F-Score3
WACC5.3%
ROIC/WACC0.71
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 Y8.4%
EPS Next 2Y7.91%
EPS Next 3Y7.87%
EPS Next 5Y7.6%
Revenue 1Y (TTM)8.25%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%14.37%
Revenue Next Year2.73%
Revenue Next 2Y3.36%
Revenue Next 3Y3.58%
Revenue Next 5Y4.67%
EBIT growth 1Y16.84%
EBIT growth 3Y9.07%
EBIT growth 5Y3.72%
EBIT Next Year94.38%
EBIT Next 3Y32.6%
EBIT Next 5Y22.84%
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%