Stock Analysis Report

Executive Summary

CMS Energy Corporation operates as an energy company primarily in Michigan.

Snowflake Analysis

Established dividend payer with acceptable track record.

Similar Companies

Share Price & News

How has CMS Energy's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: CMS has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




US Integrated Utilities


US Market

1 Year Return




US Integrated Utilities


US Market

Return vs Industry: CMS exceeded the US Integrated Utilities industry which returned 16.7% over the past year.

Return vs Market: CMS exceeded the US Market which returned 17.9% over the past year.

Shareholder returns

7 Day-0.09%-0.3%-1.1%
30 Day1.4%1.8%1.4%
90 Day11.8%8.3%6.9%
1 Year29.6%26.3%20.8%16.7%20.3%17.9%
3 Year66.8%53.2%45.5%31.0%47.8%38.3%
5 Year126.0%94.8%78.6%43.4%71.9%53.0%

Price Volatility Vs. Market

How volatile is CMS Energy's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is CMS Energy undervalued compared to its fair value and its price relative to the market?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: CMS ($68.45) is trading above our estimate of fair value ($40.62)

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

Price To Earnings Ratio

PE vs Industry: CMS is poor value based on its PE Ratio (28.5x) compared to the Integrated Utilities industry average (21.4x).

PE vs Market: CMS is poor value based on its PE Ratio (28.5x) compared to the US market (18.2x).

Price to Earnings Growth Ratio

PEG Ratio: CMS is poor value based on its PEG Ratio (3.7x)

Price to Book Ratio

PB vs Industry: CMS is overvalued based on its PB Ratio (3.9x) compared to the US Integrated Utilities industry average (2.2x).

Next Steps

Future Growth

How is CMS Energy forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMS's forecast earnings growth (7.7% per year) is above the savings rate (1.7%).

Earnings vs Market: CMS's earnings (7.7% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: CMS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CMS's revenue (3.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CMS's revenue (3.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CMS's Return on Equity is forecast to be low in 3 years time (14%).

Next Steps

Past Performance

How has CMS Energy performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CMS has high quality earnings.

Growing Profit Margin: CMS's current net profit margins (9.9%) are higher than last year (9.6%).

Past Earnings Growth Analysis

Earnings Trend: CMS's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: CMS's earnings growth over the past year (3.5%) is below its 5-year average (5.5% per year).

Earnings vs Industry: CMS earnings growth over the past year (3.5%) underperformed the Integrated Utilities industry 3.5%.

Return on Equity

High ROE: CMS's Return on Equity (13.5%) is considered low.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is CMS Energy's financial position?

Financial Position Analysis

Short Term Liabilities: CMS's short term assets ($2.3B) do not cover its short term liabilities ($2.7B).

Long Term Liabilities: CMS's short term assets ($2.3B) do not cover its long term liabilities ($19.1B).

Debt to Equity History and Analysis

Debt Level: CMS's debt to equity ratio (260.4%) is considered high.

Reducing Debt: CMS's debt to equity ratio has increased from 231.8% to 260.4% over the past 5 years.

Debt Coverage: CMS's debt is not well covered by operating cash flow (13.6%).

Interest Coverage: CMS's interest payments on its debt are not well covered by EBIT (2.6x coverage).

Balance Sheet

Inventory Level: CMS has a high level of physical assets or inventory.

Debt Coverage by Assets: CMS's debt is not covered by short term assets (assets are 0.2x debt).

Next Steps


What is CMS Energy's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: CMS's dividend (2.38%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CMS's dividend (2.38%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stability and Growth of Payments

Stable Dividend: CMS's dividends per share have been stable in the past 10 years.

Growing Dividend: CMS's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.7%), CMS's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: CMS's dividends in 3 years are forecast to be covered by earnings (61% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Patti Poppe (50yo)





Ms. Patricia Kessler Poppe, also known as Patti, has been the Chief Executive Officer and President at CMS Energy Corp. and Consumers Energy Company since July 01, 2016. Ms. Poppe joined Consumers Energy i ...

CEO Compensation Analysis

Compensation vs Market: Patti's total compensation ($USD8.09M) is about average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Patti's compensation has been consistent with company performance over the past year.

Leadership Team

Patricia Poppe
President3.6yrsUS$8.09m0.17% $33.3m
Rejji Hayes
Executive VP & CFO2.8yrsUS$2.51m0.038% $7.4m
Garrick Rochow
Executive Vice President of Operations2.6yrsUS$1.85m0.038% $7.5m
Brian Rich
Senior VP & Chief Customer Officer5.6yrsUS$1.49m0.025% $4.9m
Glenn Barba
VP, Controller & Chief Accounting Officer17yrsno data0.012% $2.3m
Tamara Faber-Doty
VP of Technology & Chief Digital Officer0.5yrsno datano data
Srikanth Maddipati
VP of IR & Treasurer4.1yrsno datano data
Melissa Gleespen
VP, Chief Compliance Officer & Corporate Secretary4.1yrsno datano data
Shaun Johnson
Senior VP & General Counsel0.8yrsno data0.0076% $1.5m
Brandon Hofmeister
Senior Vice President of Governmental2.6yrsno data0.011% $2.1m


Average Tenure


Average Age

Experienced Management: CMS's management team is considered experienced (3.2 years average tenure).

Board Members

Patricia Poppe
President3.6yrsUS$8.09m0.17% $33.3m
William Harvey
Presiding Director3.8yrsUS$275.00k0.012% $2.4m
Jon Barfield
Independent Director14.5yrsUS$240.00k0.0059% $1.1m
John Russell
Chairman of the Board3.8yrsUS$386.00k0.067% $13.0m
Stephen Ewing
Independent Director10.6yrsUS$250.00k0.016% $3.0m
Deborah Butler
Independent Director5.1yrsUS$235.00k0.0049% $957.9k
Kurt Darrow
Independent Director6.3yrsUS$250.00k0.0066% $1.3m
John Sznewajs
Independent Director4.6yrsUS$240.00k0.0043% $829.7k
Laura Wright
Independent Director7yrsUS$255.00k0.0095% $1.8m
Myrna Soto
Independent Director5.1yrsUS$240.00k0.0053% $1.0m


Average Tenure


Average Age

Experienced Board: CMS's board of directors are considered experienced (5.1 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

CMS Energy Corporation's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: CMS Energy Corporation
  • Ticker: CMS
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$19.431b
  • Shares outstanding: 283.87m
  • Website: https://www.cmsenergy.com

Number of Employees


  • CMS Energy Corporation
  • One Energy Plaza
  • Jackson
  • Michigan
  • 49201
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMSNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
CSGDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0HR4LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
C1MS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020


CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates in four segments: Electric Utility, Gas Utility, Enterprises, and EnerBank. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources. Its transmission and distribution system comprises 213 miles of transmission overhead lines; 205 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,430 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 66,917 miles of electric distribution overhead lines; 9,314 miles of underground distribution lines; substations; and a battery facility. The Gas Utility segment engages in the purchase, transmission, storage, distribution, and sale of natural gas, which includes 2,426 miles of transmission lines; 15 gas storage fields; 27,729 miles of distribution mains; and 8 compressor stations. The Enterprises segment is involved in the independent power production and marketing, including the development and operation of renewable generation. It owns interests in independent power plants totaling 1,335 megawatts. The EnterBank segment operates an industrial bank providing unsecured consumer installment loans for financing home improvements. It serves 1.8 million electric and 1.8 million gas customers, including residential, commercial, and diversified industrial customers. CMS Energy Corporation was founded in 1987 and is headquartered in Jackson, Michigan. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:20
End of Day Share Price2020/02/21 00:00
Annual Earnings2019/12/31

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 here.