NYSE:CMS

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 8.17% per year

Earnings grew by 13.7% over the past year

Pays a high and reliable dividend of 2.39%

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Solid track record established dividend payer.


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

3.7%

CMS

2.7%

US Integrated Utilities

1.7%

US Market


1 Year Return

28.5%

CMS

21.0%

US Integrated Utilities

23.2%

US Market

Return vs Industry: CMS exceeded the US Integrated Utilities industry which returned 19.5% over the past year.

Return vs Market: CMS exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

CMSIndustryMarket
7 Day3.7%2.7%1.7%
30 Day4.9%2.4%4.2%
90 Day2.1%1.4%11.9%
1 Year32.0%28.5%25.2%21.0%25.8%23.2%
3 Year68.5%54.5%45.1%30.5%52.8%42.9%
5 Year102.3%74.1%58.8%27.4%75.2%55.8%

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?

29.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMS ($63.89) is trading above our estimate of fair value ($39.97)

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 (29.1x) compared to the Integrated Utilities industry average (21x).

PE vs Market: CMS is poor value based on its PE Ratio (29.1x) compared to the US market (18.9x).


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 (2.1x).


Next Steps

Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMS's forecast earnings growth (8.2% per year) is above the savings rate (1.7%).

Earnings vs Market: CMS's earnings (8.2% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: CMS's revenue (2.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CMS's revenue (2.5% 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 (14.3%).


Next Steps

Past Performance

How has CMS Energy performed over the past 5 years?

4.8%

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%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: CMS's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: CMS's earnings growth over the past year (13.7%) exceeds its 5-year average (4.8% per year).

Earnings vs Industry: CMS earnings growth over the past year (13.7%) exceeded the Integrated Utilities industry -9.8%.


Return on Equity

High ROE: CMS's Return on Equity (12.5%) 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) exceed its short term liabilities ($2.2B).

Long Term Liabilities: CMS's short term assets ($2.3B) do not cover its long term liabilities ($18.9B).


Debt to Equity History and Analysis

Debt Level: CMS's debt to equity ratio (262.5%) is considered high.

Reducing Debt: CMS's debt to equity ratio has increased from 235% to 262.5% over the past 5 years.

Debt Coverage: CMS's debt is not well covered by operating cash flow (11.7%).

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?

2.34%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.6%industryaverage3.2%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: CMS's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CMS's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (68.5%), 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 (60.8% 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?

3.1yrs

Average management tenure


CEO

Patti Poppe (50yo)

3.5yrs

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 ($USD8.09M) is about average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

3.1yrs

Average Tenure

44yo

Average Age

Experienced Management: CMS's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CMS's board of directors are considered experienced (5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$509,68915 Nov 19
Jon Barfield
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,390
Max PriceUS$60.75
SellUS$47,05705 Nov 19
Venkat Rao
EntityIndividual
Shares750
Max PriceUS$62.74
SellUS$47,58204 Nov 19
Venkat Rao
EntityIndividual
Shares750
Max PriceUS$63.44
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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Glenn Barba (53yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 16.9yrs
  • Garrick Rochow (44yo)

    Senior Vice President of Operations

    • Tenure: 2.5yrs
    • Compensation: US$1.85m
  • Patti Poppe (50yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$8.09m
  • Rejji Hayes (44yo)

    Executive VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$2.51m
  • Brian Rich (44yo)

    Senior VP & Chief Customer Officer

    • Tenure: 5.5yrs
    • Compensation: US$1.49m
  • Melissa Gleespen (51yo)

    VP, Chief Compliance Officer & Corporate Secretary

    • Tenure: 4yrs
  • Brandon Hofmeister (42yo)

    Senior Vice President of Governmental

    • Tenure: 2.5yrs
  • Shaun Johnson

    Senior VP & General Counsel

    • Tenure: 0.7yrs
  • Tamara Faber-Doty

    VP of Technology & Chief Digital Officer

    • Tenure: 0.4yrs
  • Sri Maddipati (36yo)

    VP of IR & Treasurer

    • Tenure: 4yrs

Board Members

  • Bill Harvey (70yo)

    Presiding Director

    • Tenure: 3.7yrs
    • Compensation: US$275.00k
  • Jon Barfield (67yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: US$240.00k
  • John Russell (61yo)

    Chairman of the Board

    • Tenure: 3.7yrs
    • Compensation: US$386.00k
  • Steven Ewing (75yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$250.00k
  • Deborah Butler (65yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$235.00k
  • Kurt Darrow (64yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$250.00k
  • John Sznewajs (51yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$240.00k
  • Laura Wright (59yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$255.00k
  • Patti Poppe (50yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$8.09m
  • Myrna Soto (50yo)

    Independent Director

    • Tenure: 5yrs
    • 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$18.556b
  • Shares outstanding: 283.82m
  • 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 in the generation, purchase, transmission, distribution, and sale of electricity. The segment generates electricity through coal, gas, renewable energy, oil, and nuclear sources. Its transmission and distribution system includes 214 miles of transmission overhead lines; 195 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,435 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 56,152 miles of electric distribution overhead lines; 10,817 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. Its gas transmission, storage, and distribution system consists of 1,666 miles of transmission lines; 15 gas storage fields; 28,404 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 company also operates an industrial bank providing unsecured consumer installment loans for financing home improvements. It serves 1.8 million electric customers and 1.8 million gas customers, including residential, commercial, and diversified industrial customers in Michigan’s Lower Peninsula. CMS Energy Corporation was founded in 1987 and is headquartered in Jackson, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 01:29
End of Day Share Price2020/01/16 00:00
Earnings2019/09/30
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.