CMS Stock Overview
CMS Energy Corporation operates as an energy company primarily in Michigan.
CMS Energy Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$66.11|
|52 Week High||US$73.76|
|52 Week Low||US$58.51|
|1 Month Change||-7.07%|
|3 Month Change||-10.13%|
|1 Year Change||10.53%|
|3 Year Change||12.28%|
|5 Year Change||45.07%|
|Change since IPO||75.71%|
Recent News & Updates
Why It's Time To Redeploy From CMS Energy
CMS Energy is a $20.0 billion holding company for a gas and electric utility serving Michigan. It also has a small operation (financially) as an unregulated power generator. The company’s dividend yields 2.7%. Its beta is low and attractive at 0.26. However, it is subject to rising cost inflation across the board, including in its debt costs. CMS has reconfigured its future electric generation capacity away from reliable coal, natural gas, and nuclear and toward intermittent renewables. Yet its grid operator is already warning of blackouts.
A Look At The Fair Value Of CMS Energy Corporation (NYSE:CMS)
Today we will run through one way of estimating the intrinsic value of CMS Energy Corporation ( NYSE:CMS ) by...
|CMS||US Integrated Utilities||US Market|
Return vs Industry: CMS underperformed the US Integrated Utilities industry which returned 14.1% over the past year.
Return vs Market: CMS exceeded the US Market which returned -19.1% over the past year.
|CMS Average Weekly Movement||3.3%|
|Integrated Utilities Industry Average Movement||3.4%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.3%|
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
CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity.
CMS Energy Fundamentals Summary
|CMS fundamental statistics|
Is CMS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CMS income statement (TTM)|
|Cost of Revenue||US$5.00b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||2.68|
|Net Profit Margin||10.12%|
How did CMS perform over the long term?See historical performance and comparison
2.8%Current Dividend Yield
Is CMS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 0/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CMS?
Other financial metrics that can be useful for relative valuation.
|What is CMS's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does CMS's PE Ratio compare to its peers?
|CMS PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
CNP CenterPoint Energy
DTE DTE Energy
WEC WEC Energy Group
CMS CMS Energy
Price-To-Earnings vs Peers: CMS is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the peer average (23.6x).
Price to Earnings Ratio vs Industry
How does CMS's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?
Price-To-Earnings vs Industry: CMS is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the US Integrated Utilities industry average (23.7x)
Price to Earnings Ratio vs Fair Ratio
What is CMS'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.
|Current PE Ratio||24.7x|
|Fair PE Ratio||22.9x|
Price-To-Earnings vs Fair Ratio: CMS is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).
Share Price vs Fair Value
What is the Fair Price of CMS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CMS ($66.11) is trading above our estimate of fair value ($60.13)
Significantly Below Fair Value: CMS is trading above our estimate of fair value.
Price to Earnings Growth Ratio
PEG Ratio: CMS is poor value based on its PEG Ratio (2.9x)
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How is CMS Energy forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CMS's forecast earnings growth (8.6% per year) is above the savings rate (1.9%).
Earnings vs Market: CMS's earnings (8.6% per year) are forecast to grow slower than the US market (12.8% per year).
High Growth Earnings: CMS's earnings are forecast to grow, but not significantly.
Revenue vs Market: CMS's revenue (3.5% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: CMS's revenue (3.5% 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 (13.3%).
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How has CMS Energy performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CMS has high quality earnings.
Growing Profit Margin: CMS's current net profit margins (10.1%) are lower than last year (11.8%).
Past Earnings Growth Analysis
Earnings Trend: CMS's earnings have grown by 9.2% per year over the past 5 years.
Accelerating Growth: CMS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CMS had negative earnings growth (-0.6%) over the past year, making it difficult to compare to the Integrated Utilities industry average (6.6%).
Return on Equity
High ROE: CMS's Return on Equity (10.3%) is considered low.
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How is CMS Energy's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: CMS's short term assets ($2.5B) exceed its short term liabilities ($1.8B).
Long Term Liabilities: CMS's short term assets ($2.5B) do not cover its long term liabilities ($19.5B).
Debt to Equity History and Analysis
Debt Level: CMS's net debt to equity ratio (161.8%) is considered high.
Reducing Debt: CMS's debt to equity ratio has reduced from 225% to 167.8% over the past 5 years.
Debt Coverage: CMS's debt is not well covered by operating cash flow (13.6%).
Interest Coverage: CMS's interest payments on its debt are not well covered by EBIT (2.7x coverage).
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What is CMS Energy current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CMS's dividend (2.78%) is higher than the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: CMS's dividend (2.78%) is low compared to the top 25% of dividend payers in the US market (4.24%).
Stability and Growth of Payments
Stable Dividend: CMS's dividends per share have been stable in the past 10 years.
Growing Dividend: CMS's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (65.6%), CMS's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: CMS is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Garrick Rochow (47 yo)
Mr. Garrick J. Rochow has been Chief Executive Officer and President at CMS Energy Corp. and Consumers Energy Company since December 1, 2020. He serves as Director of CMS Energy Corp & Consumers Energy Com...
CEO Compensation Analysis
Compensation vs Market: Garrick's total compensation ($USD6.87M) is below average for companies of similar size in the US market ($USD13.41M).
Compensation vs Earnings: Garrick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: CMS's management team is seasoned and experienced (5.1 years average tenure).
Experienced Board: CMS's board of directors are considered experienced (7.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
CMS Energy Corporation's employee growth, exchange listings and data sources
- Name: CMS Energy Corporation
- Ticker: CMS
- Exchange: NYSE
- Founded: 1987
- Industry: Multi-Utilities
- Sector: Utilities
- Implied Market Cap: US$19.180b
- Shares outstanding: 290.13m
- Website: https://www.cmsenergy.com
Number of Employees
- CMS Energy Corporation
- One Energy Plaza
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/05 00:00|
|End of Day Share Price||2022/07/05 00:00|
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.