CMS ENERGY CORP (CMS)
US1258961002 - Common Stock
Overall CMS gets a fundamental rating of 4 out of 10. We evaluated CMS against 25 industry peers in the Multi-Utilities industry. CMS has a medium profitability rating, but doesn't score so well on its financial health evaluation. CMS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CMS had positive earnings in the past year.
In the past year CMS had a positive cash flow from operations.
In the past 5 years CMS has always been profitable.
CMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CMS has a Return On Assets of 2.98%. This is comparable to the rest of the industry: CMS outperforms 60.00% of its industry peers.
CMS has a Return On Equity of 12.79%. This is in the better half of the industry: CMS outperforms 72.00% of its industry peers.
The Return On Invested Capital of CMS (3.66%) is worse than 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CMS is in line with the industry average of 3.69%.
The 3 year average ROIC (3.43%) for CMS is below the current ROIC(3.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 12.79% | ||
| ROIC | 3.66% |
ROA(3y)3.31%
ROA(5y)3%
ROE(3y)14.58%
ROE(5y)14.21%
ROIC(3y)3.43%
ROIC(5y)3.73%
1.3 Margins
Looking at the Profit Margin, with a value of 13.87%, CMS is in line with its industry, outperforming 56.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CMS has grown nicely.
Looking at the Operating Margin, with a value of 19.64%, CMS is doing worse than 60.00% of the companies in the same industry.
CMS's Operating Margin has been stable in the last couple of years.
The Gross Margin of CMS (72.06%) is comparable to the rest of the industry.
CMS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.64% | ||
| PM (TTM) | 13.87% | ||
| GM | 72.06% |
OM growth 3Y-6.72%
OM growth 5Y-0.42%
PM growth 3Y1.31%
PM growth 5Y4.22%
GM growth 3Y0.2%
GM growth 5Y1.62%
2. Health
2.1 Basic Checks
CMS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CMS has more shares outstanding
The number of shares outstanding for CMS has been increased compared to 5 years ago.
CMS has a worse debt/assets ratio than last year.
2.2 Solvency
CMS has an Altman-Z score of 0.91. This is a bad value and indicates that CMS is not financially healthy and even has some risk of bankruptcy.
CMS's Altman-Z score of 0.91 is fine compared to the rest of the industry. CMS outperforms 68.00% of its industry peers.
CMS has a Debt/Equity ratio of 1.93. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.93, CMS is not doing good in the industry: 92.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.54
WACC6.81%
2.3 Liquidity
CMS has a Current Ratio of 1.23. This is a normal value and indicates that CMS is financially healthy and should not expect problems in meeting its short term obligations.
CMS has a better Current ratio (1.23) than 88.00% of its industry peers.
A Quick Ratio of 0.83 indicates that CMS may have some problems paying its short term obligations.
CMS's Quick ratio of 0.83 is fine compared to the rest of the industry. CMS outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.33% over the past year.
Measured over the past 5 years, CMS shows a small growth in Earnings Per Share. The EPS has been growing by 5.95% on average per year.
The Revenue has decreased by -4.03% in the past year.
Measured over the past years, CMS shows a small growth in Revenue. The Revenue has been growing by 1.66% on average per year.
EPS 1Y (TTM)32.33%
EPS 3Y5.09%
EPS 5Y5.95%
EPS Q2Q%37.7%
Revenue 1Y (TTM)-4.03%
Revenue growth 3Y3.76%
Revenue growth 5Y1.66%
Sales Q2Q%4.18%
3.2 Future
CMS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.22% yearly.
Based on estimates for the next years, CMS will show a small growth in Revenue. The Revenue will grow by 2.17% on average per year.
EPS Next Y8.24%
EPS Next 2Y7.86%
EPS Next 3Y7.73%
EPS Next 5Y7.22%
Revenue Next Year-7.4%
Revenue Next 2Y-2.15%
Revenue Next 3Y-0.39%
Revenue Next 5Y2.17%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CMS is valuated rather expensively with a Price/Earnings ratio of 19.47.
Compared to the rest of the industry, the Price/Earnings ratio of CMS is on the same level as its industry peers.
CMS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.94, the valuation of CMS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CMS is valued a bit more expensive than the industry average as 76.00% of the companies are valued more cheaply.
CMS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.47 | ||
| Fwd PE | 18.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMS is valued more expensive than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CMS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.36
PEG (5Y)3.27
EPS Next 2Y7.86%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
CMS has a Yearly Dividend Yield of 3.06%.
CMS's Dividend Yield is comparable with the industry average which is at 3.95.
Compared to an average S&P500 Dividend Yield of 2.23, CMS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
On average, the dividend of CMS grows each year by 6.53%, which is quite nice.
CMS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.53%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CMS pays out 59.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CMS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP59.21%
EPS Next 2Y7.86%
EPS Next 3Y7.73%
CMS ENERGY CORP
NYSE:CMS (11/20/2024, 8:14:18 PM)
After market: 68.52 0 (0%)68.52
-0.05 (-0.07%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.47 | ||
| Fwd PE | 18.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.36
PEG (5Y)3.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 12.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.64% | ||
| PM (TTM) | 13.87% | ||
| GM | 72.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)32.33%
EPS 3Y5.09%
EPS 5Y
EPS Q2Q%
EPS Next Y8.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.03%
Revenue growth 3Y3.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y