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CMS

CMS EnergyNYSE:CMS Stock Report

Market Cap

US$17.8b

7D

0.7%

1Y

1.4%

Updated

07 Dec, 2021

Data

Company Financials +
CMS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance5/6
Financial Health1/6
Dividends5/6

CMS Stock Overview

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

CMS Energy Competitors

WEC Energy Group

NYSE:WEC

US$29.1b

Consolidated Edison

NYSE:ED

US$28.8b

Ameren

NYSE:AEE

US$22.1b

DTE Energy

NYSE:DTE

US$22.1b

Price History & Performance

Summary of all time highs, changes and price drops for CMS Energy
Historical stock prices
Current Share PriceUS$61.57
52 Week HighUS$65.79
52 Week LowUS$53.19
Beta0.22
1 Month Change1.74%
3 Month Change-3.07%
1 Year Change1.43%
3 Year Change15.86%
5 Year Change47.58%
Change since IPO63.64%

Recent News & Updates

Nov 01
These 4 Measures Indicate That CMS Energy (NYSE:CMS) Is Using Debt Extensively

These 4 Measures Indicate That CMS Energy (NYSE:CMS) Is Using Debt Extensively

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Oct 19
A Look At The Fair Value Of CMS Energy Corporation (NYSE:CMS)

A Look At The Fair Value Of CMS Energy Corporation (NYSE:CMS)

In this article we are going to estimate the intrinsic value of CMS Energy Corporation ( NYSE:CMS ) by projecting its...

Oct 04
Do CMS Energy's (NYSE:CMS) Earnings Warrant Your Attention?

Do CMS Energy's (NYSE:CMS) Earnings Warrant Your Attention?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Sep 19
The Returns At CMS Energy (NYSE:CMS) Aren't Growing

The Returns At CMS Energy (NYSE:CMS) Aren't Growing

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to...

Shareholder Returns

CMSUS Integrated UtilitiesUS Market
7D0.7%0.9%-2.6%
1Y1.4%3.3%17.8%

Return vs Industry: CMS matched the US Integrated Utilities industry which returned 2% over the past year.

Return vs Market: CMS underperformed the US Market which returned 16.5% over the past year.

Price Volatility

Is CMS's price volatile compared to industry and market?
CMS volatility
CMS Average Weekly Movement2.6%
Integrated Utilities Industry Average Movement2.9%
Market Average Movement6.2%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: CMS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CMS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19878,191Garrick Rochowhttps://www.cmsenergy.com

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

CMS Energy Fundamentals Summary

How do CMS Energy's earnings and revenue compare to its market cap?
CMS fundamental statistics
Market CapUS$17.84b
Earnings (TTM)US$821.00m
Revenue (TTM)US$7.29b

21.7x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMS income statement (TTM)
RevenueUS$7.29b
Cost of RevenueUS$4.41b
Gross ProfitUS$2.87b
ExpensesUS$2.05b
EarningsUS$821.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.83
Gross Margin39.41%
Net Profit Margin11.27%
Debt/Equity Ratio189.6%

How did CMS perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

60%

Payout Ratio

Valuation

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

21.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMS ($61.57) is trading above our estimate of fair value ($53.8)

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


Price To Earnings Ratio

PE vs Industry: CMS's PE Ratio (21.7x) is in line with the US Integrated Utilities industry average.

PE vs Market: CMS is poor value based on its PE Ratio (21.7x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: CMS is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: CMS is overvalued based on its PB Ratio (3x) compared to the US Integrated Utilities industry average (2.1x).


Future Growth

How is CMS Energy forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMS's forecast earnings growth (6.9% per year) is above the savings rate (2%).

Earnings vs Market: CMS's earnings (6.9% per year) are forecast to grow slower than the US market (13.8% per year).

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

Revenue vs Market: CMS's revenue (2.3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: CMS's revenue (2.3% 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 (14.1%).


Past Performance

How has CMS Energy performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMS has high quality earnings.

Growing Profit Margin: CMS's current net profit margins (11.3%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: CMS's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: CMS's earnings growth over the past year (12.5%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: CMS earnings growth over the past year (12.5%) exceeded the Integrated Utilities industry 11.5%.


Return on Equity

High ROE: CMS's Return on Equity (12.2%) is considered low.


Financial Health

How is CMS Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CMS's short term assets ($2.5B) do not cover its short term liabilities ($3.3B).

Long Term Liabilities: CMS's short term assets ($2.5B) do not cover its long term liabilities ($20.6B).


Debt to Equity History and Analysis

Debt Level: CMS's net debt to equity ratio (188%) is considered high.

Reducing Debt: CMS's debt to equity ratio has reduced from 227.7% to 189.6% over the past 5 years.

Debt Coverage: CMS's debt is not well covered by operating cash flow (12.8%).

Interest Coverage: CMS's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Dividend

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

2.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMS's dividend (2.83%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: CMS's dividend (2.83%) is low compared to the top 25% of dividend payers in the US market (3.62%).


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 (60.1%), 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 (61.5% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Garrick Rochow (46 yo)

1

Tenure

US$2,615,131

Compensation

Mr. Garrick J. Rochow has been Chief Executive Officer and President at CMS Energy Corp. and Consumers Energy Company since December 1, 2020. He serves as Director of CMS Energy Corp & Consumers Energy Com...


CEO Compensation Analysis

Compensation vs Market: Garrick's total compensation ($USD2.62M) is below average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Garrick's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CMS's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: CMS's board of directors are considered experienced (6.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CMS insiders have only sold shares 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 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$17.837b
  • Shares outstanding: 289.70m
  • Website: https://www.cmsenergy.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:18
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.