NYSE:CMS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

2.7%

NYSE:CMS

2.2%

US Integrated Utilities

0.9%

US Market


1 Year Return

23.7%

NYSE:CMS

13.4%

US Integrated Utilities

0.3%

US Market

CMS outperformed the Integrated Utilities industry which returned 12.2% over the past year.

CMS outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

CMSIndustryMarket
7 Day2.7%2.2%0.9%
30 Day5.7%1.1%-1.9%
90 Day9.3%3.6%1.6%
1 Year27.3%23.7%17.4%13.4%2.6%0.3%
3 Year55.8%42.6%36.4%22.7%41.0%31.8%
5 Year137.9%104.3%72.0%38.2%55.2%38.0%

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

Valuation

Is CMS Energy undervalued based on future cash flows and its price relative to the stock market?

29.86x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

CMS Energy's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

CMS Energy's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

CMS Energy is overvalued based on earnings compared to the US Integrated Utilities industry average.

CMS Energy is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

CMS Energy is poor value based on expected growth next year.


Price Based on Value of Assets

CMS Energy is overvalued based on assets compared to the US Integrated Utilities industry average.


Next Steps

Future Growth

How is CMS Energy expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CMS Energy's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).

CMS Energy's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

CMS Energy's revenue growth is positive but not above the United States of America market average.

CMS Energy's earnings growth is positive but not above the United States of America market average.

CMS Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

CMS Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has CMS Energy performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

CMS Energy's year on year earnings growth rate has been positive over the past 5 years.

CMS Energy's 1-year earnings growth exceeds its 5-year average (6.2% vs 4.2%)

CMS Energy's earnings growth has exceeded the US Integrated Utilities industry average in the past year (6.2% vs -11.4%).


Return on Equity

CMS Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CMS Energy used its assets less efficiently than the US Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

CMS Energy's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CMS Energy's financial position?


Financial Position Analysis

CMS Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

CMS Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

CMS Energy's level of debt (252.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (216.2% vs 252.2% today).

Debt is not well covered by operating cash flow (11.9%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.71%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CMS Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

CMS Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

What is the CEO of CMS Energy's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Patti Poppe (50yo)

3.1yrs

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 served as an Senior Vice  ...


CEO Compensation Analysis

Patti's remuneration is about average for companies of similar size in United States of America.

Patti's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

44yo

Average Age

The tenure for the CMS Energy management team is about average.


Board Age and Tenure

4.6yrs

Average Tenure

62.5yo

Average Age

The tenure for the CMS Energy board of directors is about average.


Insider Trading

CMS Energy individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$238,78513 Aug 19
Brian Rich
EntityIndividual
Role
Chief Technology Officer
Senior VP of Customer Experience & Technology and Chief Information Officer
Shares4,000
Max PriceUS$59.70
SellUS$99,85928 May 19
Catherine Hendrian
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares1,753
Max PriceUS$56.96
SellUS$338,84609 May 19
Catherine Reynolds
EntityIndividual
Shares6,203
Max PriceUS$54.63
SellUS$467,07506 May 19
Glenn Barba
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer
Shares8,500
Max PriceUS$54.95
SellUS$929,88001 May 19
John Russell
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares16,800
Max PriceUS$55.35
SellUS$434,05413 Feb 19
Catherine Reynolds
EntityIndividual
Shares8,187
Max PriceUS$53.02
SellUS$25,94021 Nov 18
Brandon Hofmeister
EntityIndividual
Role
Head of Corporate Communications
Senior Vice President of Governmental
Shares500
Max PriceUS$51.88
SellUS$198,74831 Oct 18
Brian Rich
EntityIndividual
Role
Chief Technology Officer
Senior VP of Customer Experience & Technology and Chief Information Officer
Shares4,000
Max PriceUS$49.69

Ownership Breakdown


Management Team

  • Glenn Barba (53yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 16.5yrs
  • Garrick Rochow (44yo)

    Senior Vice President of Operations

    • Tenure: 2.1yrs
    • Compensation: US$1.85m
  • Patti Poppe (50yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$8.09m
  • Rejji Hayes (44yo)

    Executive VP & CFO

    • Tenure: 2.3yrs
    • Compensation: US$2.51m
  • Brian Rich (44yo)

    Senior VP of Customer Experience & Technology and Chief Information Officer

    • Tenure: 3.1yrs
    • Compensation: US$1.49m
  • Melissa Gleespen (51yo)

    VP, Chief Compliance Officer & Corporate Secretary

    • Tenure: 3.6yrs
  • Cathy Hendrian (50yo)

    Senior Vice President of Human Resources

    • Tenure: 2.3yrs
  • Brandon Hofmeister (42yo)

    Senior Vice President of Governmental

    • Tenure: 2.1yrs
  • Shaun Johnson

    Senior VP & General Counsel

    • Tenure: 0.3yrs
  • Sri Maddipati (36yo)

    VP of Investor Relations & Treasurer

    • Tenure: 3.6yrs

Board Members

  • Bill Harvey (70yo)

    Presiding Director

    • Tenure: 3.3yrs
    • Compensation: US$275.00k
  • Jon Barfield (67yo)

    Director

    • Tenure: 14.0yrs
    • Compensation: US$240.00k
  • John Russell (61yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$386.00k
  • Steven Ewing (75yo)

    Director

    • Tenure: 10.1yrs
    • Compensation: US$250.00k
  • Deborah Butler (65yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$235.00k
  • Kurt Darrow (64yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$250.00k
  • John Sznewajs (51yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$240.00k
  • Laura Wright (59yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: US$255.00k
  • Patti Poppe (50yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$8.09m
  • Myrna Soto (50yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$240.00k

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$17.472b
  • Shares outstanding: 283.77m
  • Website: https://www.cmsenergy.com

Number of Employees


Location

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

Listings

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

Biography

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates in three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment is involved  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 23:34
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.