CMS ENERGY CORP - CMS 5 7/8 10/15/2078 (CMSC) Stock Fundamental Analysis
USA - NYSE:CMSC - US1258968528
23.64 USD
-0.05 (-0.21%)
We assign a fundamental rating of 5 out of 10 to CMSC. CMSC was compared to 25 industry peers in the Multi-Utilities industry. While CMSC has a great profitability rating, there are quite some concerns on its financial health. CMSC is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years CMSC has always been profitable.
Each year in the past 5 years CMSC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.69%, CMSC is in line with its industry, outperforming 60.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.07%, CMSC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
CMSC has a Return On Invested Capital of 3.74%. This is comparable to the rest of the industry: CMSC outperforms 52.00% of 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 3 year average ROIC (3.46%) for CMSC 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
CMSC has a Profit Margin (12.64%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CMSC has grown nicely.
CMSC has a Operating Margin of 20.00%. This is comparable to the rest of the industry: CMSC outperforms 48.00% of its industry peers.
In the last couple of years the Operating Margin of CMSC has grown nicely.
CMSC has a better Gross Margin (71.26%) than 68.00% 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
CMSC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CMSC has been increased compared to 1 year ago.
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.
With a Altman-Z score value of 0.58, CMSC is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
CMSC has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
CMSC has a worse Debt to Equity ratio (2.02) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.58 |
ROIC/WACC0.71
WACC5.28%
2.3 Liquidity
A Current Ratio of 1.00 indicates that CMSC may have some problems paying its short term obligations.
With a decent Current ratio value of 1.00, CMSC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that CMSC may have some problems paying its short term obligations.
CMSC's Quick ratio of 0.77 is fine compared to the rest of the industry. CMSC outperforms 80.00% 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%.
CMSC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.05% yearly.
CMSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.25%.
Measured over the past years, CMSC shows a small growth in Revenue. The Revenue has been growing by 1.89% on average per year.
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 7.57% on average per year.
Based on estimates for the next years, CMSC will show a small growth in Revenue. The Revenue will grow by 4.75% on average per year.
EPS Next Y8.5%
EPS Next 2Y7.97%
EPS Next 3Y7.89%
EPS Next 5Y7.57%
Revenue Next Year2.69%
Revenue Next 2Y3.33%
Revenue Next 3Y3.58%
Revenue Next 5Y4.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 6.87, the valuation of CMSC can be described as very cheap.
CMSC's Price/Earnings ratio is rather cheap when compared to the industry. CMSC is cheaper than 84.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.02, CMSC is valued rather cheaply.
CMSC is valuated cheaply with a Price/Forward Earnings ratio of 6.07.
Based on the Price/Forward Earnings ratio, CMSC is valued cheaper than 84.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, CMSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.87 | ||
| Fwd PE | 6.07 |
4.2 Price Multiples
84.00% of the companies in the same industry are more expensive than CMSC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.51 |
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)0.81
PEG (5Y)1.14
EPS Next 2Y7.97%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.14%, CMSC is a good candidate for dividend investing.
CMSC's Dividend Yield is a higher than the industry average which is at 4.41.
Compared to an average S&P500 Dividend Yield of 2.44, CMSC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
5.2 History
On average, the dividend of CMSC grows each year by 6.54%, which is quite nice.
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.
The dividend of CMSC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP71.96%
EPS Next 2Y7.97%
EPS Next 3Y7.89%
CMS ENERGY CORP - CMS 5 7/8 10/15/2078
NYSE:CMSC (10/10/2025, 9:18:32 PM)
23.64
-0.05 (-0.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners101.05%
Inst Owner ChangeN/A
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap7.08B
Analysts76
Price Target26.08 (10.32%)
Short Float %0%
Short Ratio0.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
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)4.65%
PT rev (3m)4.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.86%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.87 | ||
| Fwd PE | 6.07 | ||
| P/S | 0.88 | ||
| P/FCF | N/A | ||
| P/OCF | 3.24 | ||
| P/B | 0.84 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)3.44
EY14.55%
EPS(NY)3.89
Fwd EY16.47%
FCF(TTM)-3.53
FCFYN/A
OCF(TTM)7.3
OCFY30.89%
SpS26.78
BVpS28.04
TBVpS28.04
PEG (NY)0.81
PEG (5Y)1.14
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
WACC5.28%
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 Y8.5%
EPS Next 2Y7.97%
EPS Next 3Y7.89%
EPS Next 5Y7.57%
Revenue 1Y (TTM)8.25%
Revenue growth 3Y0.84%
Revenue growth 5Y1.89%
Sales Q2Q%14.37%
Revenue Next Year2.69%
Revenue Next 2Y3.33%
Revenue Next 3Y3.58%
Revenue Next 5Y4.75%
EBIT growth 1Y16.84%
EBIT growth 3Y9.07%
EBIT growth 5Y3.72%
EBIT Next Year92.04%
EBIT Next 3Y32.08%
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%