CMS Energy
Market Cap
US$19.4b
Last Updated
2020/02/23 00:20 UTC
Data Sources
Company Financials +
Executive Summary
CMS Energy Corporation operates as an energy company primarily in Michigan.
Rewards
Risk Analysis
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
-0.09%
CMS
-0.3%
US Integrated Utilities
-1.1%
US Market
1 Year Return
26.3%
CMS
16.7%
US Integrated Utilities
17.9%
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
| CMS | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.09% | -0.3% | -1.1% |
| 30 Day | 1.4% | 1.8% | 1.4% |
| 90 Day | 11.8% | 8.3% | 6.9% |
| 1 Year | 29.6%26.3% | 20.8%16.7% | 20.3%17.9% |
| 3 Year | 66.8%53.2% | 45.5%31.0% | 47.8%38.3% |
| 5 Year | 126.0%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
1 week ago | Simply Wall St
Is CMS Energy Corporation (NYSE:CMS) Better Than Average At Deploying Capital?2 weeks ago | Simply Wall St
CMS Energy Corporation (NYSE:CMS) Pays A US$0.41 Dividend In Just 2 Days3 weeks ago | Simply Wall St
Should CMS Energy Corporation (NYSE:CMS) Be Part Of Your Dividend Portfolio?Valuation
Is CMS Energy undervalued compared to its fair value and its price relative to the market?
28.49x
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?
7.7%
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?
5.5%
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
Dividend
What is CMS Energy's current dividend yield, its reliability and sustainability?
2.38%
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
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Patti Poppe (50yo)
3.6yrs
Tenure
US$8,091,185
Compensation
Ms. Patricia Kessler Poppe, also known as Patti, has been the Chief Executive Officer and President at CMS Energy Corp. and Consumers Energy Company since July 01, 2016. Ms. Poppe joined Consumers Energy i ...
CEO Compensation Analysis
Compensation vs Market: Patti's total compensation ($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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.6yrs | US$8.09m | 0.17% $33.3m | |
| Executive VP & CFO | 2.8yrs | US$2.51m | 0.038% $7.4m | |
| Executive Vice President of Operations | 2.6yrs | US$1.85m | 0.038% $7.5m | |
| Senior VP & Chief Customer Officer | 5.6yrs | US$1.49m | 0.025% $4.9m | |
| VP, Controller & Chief Accounting Officer | 17yrs | no data | 0.012% $2.3m | |
| VP of Technology & Chief Digital Officer | 0.5yrs | no data | no data | |
| VP of IR & Treasurer | 4.1yrs | no data | no data | |
| VP, Chief Compliance Officer & Corporate Secretary | 4.1yrs | no data | no data | |
| Senior VP & General Counsel | 0.8yrs | no data | 0.0076% $1.5m | |
| Senior Vice President of Governmental | 2.6yrs | no data | 0.011% $2.1m |
3.2yrs
Average Tenure
44yo
Average Age
Experienced Management: CMS's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.6yrs | US$8.09m | 0.17% $33.3m | |
| Presiding Director | 3.8yrs | US$275.00k | 0.012% $2.4m | |
| Independent Director | 14.5yrs | US$240.00k | 0.0059% $1.1m | |
| Chairman of the Board | 3.8yrs | US$386.00k | 0.067% $13.0m | |
| Independent Director | 10.6yrs | US$250.00k | 0.016% $3.0m | |
| Independent Director | 5.1yrs | US$235.00k | 0.0049% $957.9k | |
| Independent Director | 6.3yrs | US$250.00k | 0.0066% $1.3m | |
| Independent Director | 4.6yrs | US$240.00k | 0.0043% $829.7k | |
| Independent Director | 7yrs | US$255.00k | 0.0095% $1.8m | |
| Independent Director | 5.1yrs | US$240.00k | 0.0053% $1.0m |
5.1yrs
Average Tenure
62.5yo
Average Age
Experienced Board: CMS's board of directors are considered experienced (5.1 years average tenure).
Ownership
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
Location
- CMS Energy Corporation
- One Energy Plaza
- Jackson
- Michigan
- 49201
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CMS | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1968 |
| CSG | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1968 |
| 0HR4 | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jan 1968 |
| C1MS34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:20 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.