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

0.7%

CMS

-0.3%

US Integrated Utilities

0.5%

US Market


1 Year Return

26.7%

CMS

16.3%

US Integrated Utilities

6.8%

US Market

Return vs Industry: CMS exceeded the US Integrated Utilities industry which returned 16.3% over the past year.

Return vs Market: CMS exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

CMSIndustryMarket
7 Day0.7%-0.3%0.5%
30 Day1.3%-0.2%-0.8%
90 Day9.7%4.8%-0.9%
1 Year30.3%26.7%20.4%16.3%9.2%6.8%
3 Year68.9%54.5%46.3%31.6%45.6%36.2%
5 Year131.9%99.2%71.4%37.5%63.2%45.4%

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 compared to its fair value and its price relative to the market?

31.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMS ($64.01) is trading above our estimate of fair value ($34.84)

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 (31x) compared to the Integrated Utilities industry average (21.6x).

PE vs Market: CMS is poor value based on its PE Ratio (31x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CMS is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: CMS is overvalued based on its PB Ratio (3.7x) 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 14 analysts?

8.6%

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 (2.7%).

Earnings vs Market: CMS's earnings (8.6% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: CMS's revenue (2.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CMS's revenue (2.4% 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 (14.6%).


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

Earnings Trend: CMS's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: CMS's earnings growth over the past year (6.2%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: CMS earnings growth over the past year (6.2%) exceeded the Integrated Utilities industry -11.4%.


Return on Equity

High ROE: CMS's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: CMS's Return on Assets is below or equal to the Integrated Utilities industry average last year.


Return on Capital Employed

ROCE Improving: CMS's Return on Capital Employed has declined over the past 3 years.


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 ($2.4B)

Long Term Liabilities: CMS's short term assets (2.3B) do not cover its long term liabilities (18.0B)


Debt to Equity History and Analysis

Debt Level: CMS's debt to equity ratio (252.2%) is considered high

Reducing Debt: CMS's debt to equity ratio has increased from 216.2% to 252.2% over the past 5 years.

Debt Coverage: CMS's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: CMS's interest payments on its debt are not well covered by EBIT (2.5x 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?

2.39%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CMS's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CMS's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (71.8%), 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 (60.9% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Patti Poppe (50yo)

3.3yrs

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 ($USD8.09M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

2.8yrs

Average Tenure

44yo

Average Age

Experienced Management: CMS's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CMS's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: CMS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$31,18026 Aug 19
Brandon Hofmeister
EntityIndividual
Role
Head of Corporate Communications
Senior Vice President of Governmental
Shares500
Max PriceUS$62.36
SellUS$238,78513 Aug 19
Brian Rich
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Customer Officer
Shares4,000
Max PriceUS$59.70
SellUS$99,85928 May 19
Catherine Hendrian
EntityIndividual
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
Senior Key Executive
Senior VP & Chief Customer Officer
Shares4,000
Max PriceUS$49.69

Ownership Breakdown


Management Team

  • Glenn Barba (53yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 16.7yrs
  • Garrick Rochow (44yo)

    Senior Vice President of Operations

    • Tenure: 2.3yrs
    • Compensation: US$1.85m
  • Patti Poppe (50yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$8.09m
  • Rejji Hayes (44yo)

    Executive VP & CFO

    • Tenure: 2.4yrs
    • Compensation: US$2.51m
  • Brian Rich (44yo)

    Senior VP & Chief Customer Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.49m
  • Melissa Gleespen (51yo)

    VP, Chief Compliance Officer & Corporate Secretary

    • Tenure: 3.8yrs
  • Brandon Hofmeister (42yo)

    Senior Vice President of Governmental

    • Tenure: 2.3yrs
  • Shaun Johnson

    Senior VP & General Counsel

    • Tenure: 0.4yrs
  • Tamara Faber-Doty

    VP of Technology & Chief Digital Officer

    • Tenure: 0.2yrs
  • Sri Maddipati (36yo)

    VP of IR & Treasurer

    • Tenure: 3.8yrs

Board Members

  • Bill Harvey (70yo)

    Presiding Director

    • Tenure: 3.4yrs
    • Compensation: US$275.00k
  • Jon Barfield (67yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$240.00k
  • John Russell (61yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: US$386.00k
  • Steven Ewing (75yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$250.00k
  • Deborah Butler (65yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$235.00k
  • Kurt Darrow (64yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$250.00k
  • John Sznewajs (51yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$240.00k
  • Laura Wright (59yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$255.00k
  • Patti Poppe (50yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$8.09m
  • Myrna Soto (50yo)

    Director

    • Tenure: 4.8yrs
    • 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$18.147b
  • 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 Analysis2019/10/21 23:33
End of Day Share Price2019/10/21 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.