CMS Energy Corporation

LSE:0HR4 Stock Report

Market Cap: US$21.6b

CMS Energy Valuation

Is 0HR4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0HR4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

US$64.72
Fair Value
10.4% overvalued intrinsic discount
13
Number of Analysts

Below Fair Value: 0HR4 ($71.44) is trading above our estimate of fair value ($64.72)

Significantly Below Fair Value: 0HR4 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HR4?

Key metric: As 0HR4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HR4. This is calculated by dividing 0HR4's market cap by their current earnings.
What is 0HR4's PE Ratio?
PE Ratio20.9x
EarningsUS$1.04b
Market CapUS$21.63b

Price to Earnings Ratio vs Peers

How does 0HR4's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HR4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.5x
NG. National Grid
19.6x11.43%UK£56.3b
TEP Telecom Plus
16.8x10.28%UK£1.1b
SSE SSE
27.2x19.08%UK£26.1b
SVT Severn Trent
26.4x18.80%UK£8.3b
0HR4 CMS Energy
20.9x9.52%US$21.6b

Price-To-Earnings vs Peers: 0HR4 is good value based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

How does 0HR4's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
0HR4 20.9xIndustry Avg. 17.8xNo. of Companies8PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HR4 is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the Global Integrated Utilities industry average (17.8x).

Price to Earnings Ratio vs Fair Ratio

What is 0HR4's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0HR4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.9x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: 0HR4 is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0HR4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$71.44
US$78.62
+10.04%
7.46%US$85.00US$61.00n/a13
Nov ’26US$73.34
US$78.08
+6.46%
7.61%US$85.00US$61.00n/a13
Oct ’26US$73.16
US$76.42
+4.45%
7.28%US$82.00US$61.00n/a12
Sep ’26US$71.68
US$76.54
+6.79%
6.75%US$81.00US$61.00n/a13
Aug ’26US$74.19
US$76.29
+2.83%
7.96%US$82.00US$59.00n/a14
Jul ’26US$69.63
US$75.27
+8.09%
9.45%US$83.00US$59.00n/a16
Jun ’26US$69.69
US$74.90
+7.48%
9.42%US$83.00US$59.00n/a17
May ’26US$73.40
US$75.21
+2.47%
9.13%US$83.00US$59.00n/a17
Apr ’26US$74.94
US$73.80
-1.52%
8.40%US$80.00US$59.00n/a17
Mar ’26US$72.33
US$72.09
-0.33%
7.59%US$78.00US$59.00n/a17
Feb ’26US$66.02
US$71.86
+8.84%
7.89%US$78.00US$59.00n/a17
Jan ’26US$66.34
US$71.56
+7.88%
8.76%US$79.00US$58.11n/a18
Dec ’25US$69.71
US$72.06
+3.37%
8.68%US$79.00US$58.00US$74.0518
Nov ’25US$68.56
US$72.12
+5.21%
8.96%US$81.00US$58.00US$73.3417
Oct ’25US$70.99
US$70.88
-0.16%
7.17%US$76.00US$58.00US$73.1616
Sep ’25US$67.62
US$67.47
-0.23%
8.08%US$75.00US$55.00US$71.6815
Aug ’25US$66.15
US$65.25
-1.36%
7.05%US$72.00US$55.00US$74.1916
Jul ’25US$59.09
US$63.88
+8.10%
6.53%US$71.00US$55.00US$69.6317
Jun ’25US$62.48
US$64.11
+2.61%
6.26%US$71.00US$55.00US$69.6917
May ’25US$60.64
US$63.41
+4.56%
6.10%US$68.00US$55.00US$73.4017
Apr ’25US$60.14
US$62.46
+3.86%
5.68%US$67.00US$55.00US$74.9417
Mar ’25US$57.76
US$62.46
+8.14%
5.81%US$67.00US$55.00US$72.3317
Feb ’25US$58.58
US$62.76
+7.13%
7.18%US$75.00US$55.00US$66.0217
Jan ’25US$57.82
US$60.81
+5.18%
8.65%US$75.00US$54.00US$66.3416
Dec ’24US$57.91
US$59.69
+3.07%
6.72%US$65.00US$54.00US$69.7116
US$79
Fair Value
9.6% undervalued intrinsic discount
13
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/12/06 15:06
End of Day Share Price 2025/12/05 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

CMS Energy Corporation is covered by 30 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jacob KilsteinArgus Research Company
David ParkerBaird
Daniel FordBarclays