NYSE:CMS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer with solid 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

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.


Market Performance


7 Day Return

-3.6%

CMS

-2.7%

US Integrated Utilities

1.5%

US Market


1 Year Return

-2.8%

CMS

-5.1%

US Integrated Utilities

22.3%

US Market

Return vs Industry: CMS exceeded the US Integrated Utilities industry which returned -4.1% over the past year.

Return vs Market: CMS underperformed the US Market which returned 22.1% over the past year.


Shareholder returns

CMSIndustryMarket
7 Day-3.6%-2.7%1.5%
30 Day-7.4%-2.8%8.8%
90 Day-3.1%2.8%10.8%
1 Year-0.1%-2.8%-1.7%-5.1%25.1%22.3%
3 Year30.4%19.9%15.0%3.2%49.5%39.6%
5 Year97.9%71.5%74.4%45.9%105.8%83.3%

Long-Term 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?

22.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMS ($59.77) is trading above our estimate of fair value ($37.42)

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 (22.3x) compared to the US Integrated Utilities industry average (20.4x).

PE vs Market: CMS is poor value based on its PE Ratio (22.3x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: CMS is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: CMS is overvalued based on its PB Ratio (3.2x) compared to the US Integrated Utilities industry average (1.9x).


Next Steps

Future Growth

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

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMS's forecast earnings growth (7.5% per year) is above the savings rate (2.2%).

Earnings vs Market: CMS's earnings (7.5% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: CMS's revenue (3.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: CMS's revenue (3.1% 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%).


Next Steps

Past Performance

How has CMS Energy performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMS has high quality earnings.

Growing Profit Margin: CMS's current net profit margins (11.4%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: CMS's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: CMS's earnings growth over the past year (22.9%) exceeds its 5-year average (7.4% per year).

Earnings vs Industry: CMS earnings growth over the past year (22.9%) exceeded the Integrated Utilities industry 5.9%.


Return on Equity

High ROE: CMS's Return on Equity (12.9%) is considered low.


Next Steps

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 ($3.0B).

Long Term Liabilities: CMS's short term assets ($2.5B) do not cover its long term liabilities ($20.4B).


Debt to Equity History and Analysis

Debt Level: CMS's debt to equity ratio (255.3%) is considered high.

Reducing Debt: CMS's debt to equity ratio has increased from 221% to 255.3% over the past 5 years.

Debt Coverage: CMS's debt is not well covered by operating cash flow (10.2%).

Interest Coverage: CMS's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMS's dividend (2.73%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: CMS's dividend (2.73%) is low compared to the top 25% of dividend payers in the US market (4.1%).


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 (59.8%), 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 (61.1% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Garrick Rochow (45 yo)

no data

Tenure

US$2,003,424

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. since December 1, 202...


CEO Compensation Analysis

Compensation vs Market: Garrick's total compensation ($USD2.00M) is below average for companies of similar size in the US market ($USD10.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Garrick Rochow
Presidentno dataUS$2.00m0.038%
$ 6.5m
Rejji Hayes
Executive VP & CFO3.58yrsUS$2.83m0.034%
$ 5.8m
Brian Rich
Senior VP & Chief Customer Officer6.42yrsUS$1.64m0.022%
$ 3.8m
Jean-Francois Brossoit
Senior Vice President of Transformation3.67yrsUS$1.61m0.016%
$ 2.8m
LeeRoy Wells
Senior Vice President of Operationsno datano datano data
Glenn Barba
VP, Controller & Chief Accounting Officer17.83yrsno data0.012%
$ 2.0m
Tamara Faber-Doty
VP of Technology & Chief Digital Officer1.33yrsno datano data
Srikanth Maddipati
VP of IR & Treasurer4.92yrsno datano data
Melissa Gleespen
VP, Chief Compliance Officer & Corporate Secretary4.92yrsno datano data
Shaun Johnson
Senior VP & General Counsel1.58yrsno data0.0075%
$ 1.3m
Brandon Hofmeister
Senior Vice President of Governmental3.42yrsno data0.011%
$ 1.8m
Catherine Hendrian
Senior Vice President of People & Culture3.67yrsno data0.014%
$ 2.5m

3.7yrs

Average Tenure

45yo

Average Age

Experienced Management: CMS's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Garrick Rochow
Presidentno dataUS$2.00m0.038%
$ 6.5m
William Harvey
Independent Presiding Director4.58yrsUS$296.25k0.013%
$ 2.3m
Jon Barfield
Independent Director15.33yrsUS$272.08k0.0051%
$ 876.2k
John Russell
Chairman of the Board4.58yrsUS$436.00k0.063%
$ 10.9m
Ronald Tanski
Independent Director1.08yrsUS$93.33k0.0014%
$ 241.3k
Deborah Butler
Independent Director5.92yrsUS$263.33k0.0059%
$ 1.0m
Kurt Darrow
Independent Director7.08yrsUS$275.00k0.0076%
$ 1.3m
John Sznewajs
Independent Director5.42yrsUS$275.00k0.0052%
$ 891.6k
Laura Wright
Independent Director7.83yrsUS$280.00k0.011%
$ 1.8m
Suzanne Shank-Werdlow
Independent Director1.92yrsUS$308.33k0.0013%
$ 220.8k
Myrna Soto
Independent Director5.92yrsUS$265.00k0.0063%
$ 1.1m

5.7yrs

Average Tenure

62yo

Average Age

Experienced Board: CMS's board of directors are considered experienced (5.7 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 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$17.113b
  • Shares outstanding: 286.32m
  • 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
CMS1 *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
C1MS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 00:05
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.