CMS ENERGY CORP (CMS)
US1258961002 - Common Stock
CMS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of CMS while its profitability can be described as average. CMS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CMS was profitable.
In the past year CMS had a positive cash flow from operations.
In the past 5 years CMS has always been profitable.
Each year in the past 5 years CMS had a positive operating cash flow.
1.2 Ratios
CMS has a Return On Assets (2.98%) which is in line with its industry peers.
With a decent Return On Equity value of 12.79%, CMS is doing good in the industry, outperforming 72.00% of the companies in the same industry.
CMS's Return On Invested Capital of 3.66% is on the low side compared to the rest of the industry. CMS is outperformed by 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 3.68%.
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
CMS has a Profit Margin (13.87%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CMS has grown nicely.
CMS has a worse Operating Margin (19.64%) than 60.00% of its industry peers.
CMS's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 72.06%, CMS is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CMS has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CMS is destroying value.
Compared to 1 year ago, CMS has more shares outstanding
CMS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CMS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that CMS is in the distress zone and has some risk of bankruptcy.
CMS has a better Altman-Z score (0.90) than 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.
CMS has a Debt to Equity ratio of 1.93. This is amonst the worse of the industry: CMS underperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.53
WACC6.88%
2.3 Liquidity
A Current Ratio of 1.23 indicates that CMS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.23, CMS belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that CMS may have some problems paying its short term obligations.
The Quick ratio of CMS (0.83) is better than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
CMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.33%, which is quite impressive.
CMS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.95% yearly.
The Revenue has decreased by -4.03% in the past year.
CMS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.66% yearly.
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
The Earnings Per Share is expected to grow by 7.50% on average over the next years.
CMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.80% yearly.
EPS Next Y8.25%
EPS Next 2Y7.87%
EPS Next 3Y7.76%
EPS Next 5Y7.5%
Revenue Next Year-6.9%
Revenue Next 2Y-1.9%
Revenue Next 3Y-0.24%
Revenue Next 5Y1.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.92 indicates a rather expensive valuation of CMS.
Compared to the rest of the industry, the Price/Earnings ratio of CMS indicates a slightly more expensive valuation: CMS is more expensive than 60.00% of the companies listed in the same industry.
CMS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.41 indicates a rather expensive valuation of CMS.
Based on the Price/Forward Earnings ratio, CMS is valued a bit more expensive than 76.00% of the companies in the same industry.
CMS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CMS indicates a rather expensive valuation: CMS more expensive than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CMS does not grow enough to justify the current Price/Earnings ratio.
CMS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)3.18
EPS Next 2Y7.87%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.13%, CMS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.92, CMS is paying slightly less dividend.
CMS's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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.
The dividend of CMS decreased recently.
Dividend Growth(5Y)6.53%
Div Incr Years1
Div Non Decr Years1
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 2Y7.87%
EPS Next 3Y7.76%
CMS ENERGY CORP
NYSE:CMS (12/20/2024, 8:04:00 PM)
After market: 66.61 0 (0%)66.61
+0.85 (+1.29%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.28%
Inst Owner Change3.15%
Ins Owners0.51%
Ins Owner Change-1.14%
Market Cap19.90B
Analysts75.83
Price Target74.35 (11.62%)
Short Float %2.67%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Dividend Growth(5Y)6.53%
DP59.21%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.72%
Min EPS beat(2)4.48%
Max EPS beat(2)6.96%
EPS beat(4)3
Avg EPS beat(4)3.37%
Min EPS beat(4)-0.57%
Max EPS beat(4)6.96%
EPS beat(8)5
Avg EPS beat(8)7.77%
EPS beat(12)9
Avg EPS beat(12)6.69%
EPS beat(16)12
Avg EPS beat(16)7.4%
Revenue beat(2)0
Avg Revenue beat(2)-8.71%
Min Revenue beat(2)-9.21%
Max Revenue beat(2)-8.21%
Revenue beat(4)0
Avg Revenue beat(4)-13.83%
Min Revenue beat(4)-29.81%
Max Revenue beat(4)-8.11%
Revenue beat(8)2
Avg Revenue beat(8)-7.64%
Revenue beat(12)6
Avg Revenue beat(12)-0.06%
Revenue beat(16)9
Avg Revenue beat(16)0.71%
PT rev (1m)2.27%
PT rev (3m)9.56%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)-9.09%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 18.41 | ||
| P/S | 2.66 | ||
| P/FCF | N/A | ||
| P/OCF | 8.39 | ||
| P/B | 2.45 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 13.25 |
EPS(TTM)3.52
EY5.28%
EPS(NY)3.62
Fwd EY5.43%
FCF(TTM)-1.12
FCFYN/A
OCF(TTM)7.94
OCFY11.92%
SpS25.02
BVpS27.15
TBVpS27.15
PEG (NY)2.29
PEG (5Y)3.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 12.79% | ||
| ROCE | 4.5% | ||
| ROIC | 3.66% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 3.71% | ||
| OM | 19.64% | ||
| PM (TTM) | 13.87% | ||
| GM | 72.06% | ||
| FCFM | N/A |
ROA(3y)3.31%
ROA(5y)3%
ROE(3y)14.58%
ROE(5y)14.21%
ROIC(3y)3.43%
ROIC(5y)3.73%
ROICexc(3y)3.47%
ROICexc(5y)3.76%
ROICexgc(3y)3.47%
ROICexgc(5y)3.76%
ROCE(3y)4.22%
ROCE(5y)4.58%
ROICexcg growth 3Y-7.72%
ROICexcg growth 5Y-5.3%
ROICexc growth 3Y-7.72%
ROICexc growth 5Y-5.3%
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%
F-Score6
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.82 | ||
| Cap/Depr | 221.24% | ||
| Cap/Sales | 36.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.11% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 0.9 |
F-Score6
WACC6.88%
ROIC/WACC0.53
Cap/Depr(3y)200.39%
Cap/Depr(5y)206.87%
Cap/Sales(3y)29.4%
Cap/Sales(5y)30.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.33%
EPS 3Y5.09%
EPS 5Y5.95%
EPS Q2Q%37.7%
EPS Next Y8.25%
EPS Next 2Y7.87%
EPS Next 3Y7.76%
EPS Next 5Y7.5%
Revenue 1Y (TTM)-4.03%
Revenue growth 3Y3.76%
Revenue growth 5Y1.66%
Sales Q2Q%4.18%
Revenue Next Year-6.9%
Revenue Next 2Y-1.9%
Revenue Next 3Y-0.24%
Revenue Next 5Y1.8%
EBIT growth 1Y33.45%
EBIT growth 3Y-3.21%
EBIT growth 5Y1.23%
EBIT Next Year95.59%
EBIT Next 3Y31.31%
EBIT Next 5Y20.55%
FCF growth 1Y75.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y136.49%
OCF growth 3Y21.86%
OCF growth 5Y6.28%