CMS ENERGY CORP (CMS) Stock Fundamental Analysis
NYSE:CMS - New York Stock Exchange, Inc. - US1258961002 - Common Stock
We assign a fundamental rating of 4 out of 10 to CMS. CMS was compared to 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CMS had positive earnings in the past year.
CMS had a positive operating cash flow in the past year.
CMS had positive earnings in each of the past 5 years.
CMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CMS's Return On Assets of 2.98% is in line compared to the rest of the industry. CMS outperforms 60.00% of its industry peers.
CMS's Return On Equity of 12.79% is fine compared to the rest of the industry. CMS outperforms 72.00% of its industry peers.
With a Return On Invested Capital value of 3.66%, CMS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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.
CMS's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 19.64%, CMS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CMS is destroying value.
CMS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CMS has been increased compared to 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 0.91, we must say that CMS is in the distress zone and has some risk of bankruptcy.
CMS has a Altman-Z score of 0.91. This is in the better half of the industry: CMS outperforms 64.00% of its industry peers.
A Debt/Equity ratio of 1.93 is on the high side and indicates that CMS has dependencies on debt financing.
CMS's Debt to Equity ratio of 1.93 is on the low side compared to the rest of the industry. CMS is outperformed by 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.53
WACC6.93%
2.3 Liquidity
A Current Ratio of 1.23 indicates that CMS should not have too much problems paying its short term obligations.
The Current ratio of CMS (1.23) is better 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.
With a decent Quick ratio value of 0.83, CMS is doing good in the industry, outperforming 76.00% of the companies in the same industry.
| 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.
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.
Looking at the last year, CMS shows a decrease in Revenue. The Revenue has decreased by -4.03% in the last 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 7.52% on average over the next years.
Based on estimates for the next years, CMS will show a small growth in Revenue. The Revenue will grow by 1.80% on average per year.
EPS Next Y8.25%
EPS Next 2Y7.87%
EPS Next 3Y7.76%
EPS Next 5Y7.52%
Revenue Next Year-6.97%
Revenue Next 2Y-1.88%
Revenue Next 3Y-0.23%
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
Based on the Price/Earnings ratio of 18.91, the valuation of CMS can be described as rather expensive.
Based on the Price/Earnings ratio, CMS is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of CMS to the average of the S&P500 Index (28.29), we can say CMS is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.39 indicates a rather expensive valuation of CMS.
CMS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CMS is more expensive than 72.00% of the companies in the same industry.
CMS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.91 | ||
| Fwd PE | 18.39 |
4.2 Price Multiples
CMS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CMS is more expensive than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.43 |
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 3.03%, CMS has a reasonable but not impressive dividend return.
CMS's Dividend Yield is slightly below the industry average, which is at 3.82.
CMS's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
On average, the dividend of CMS grows each year by 6.53%, which is quite nice.
CMS has paid a dividend for at least 10 years, which is a reliable track record.
CMS has decreased its dividend recently.
Dividend Growth(5Y)6.53%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
59.21% of the earnings are spent on dividend by CMS. 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 (1/22/2025, 11:39:09 AM)
66.555
-1.74 (-2.55%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.28%
Inst Owner Change-0.11%
Ins Owners0.51%
Ins Owner Change-1.14%
Market Cap19.89B
Analysts75.83
Price Target74.41 (11.8%)
Short Float %2.52%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend1.98
Dividend Growth(5Y)6.53%
DP59.21%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.08%
PT rev (3m)7.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.91 | ||
| Fwd PE | 18.39 | ||
| P/S | 2.66 | ||
| P/FCF | N/A | ||
| P/OCF | 8.38 | ||
| P/B | 2.45 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 13.43 |
EPS(TTM)3.52
EY5.29%
EPS(NY)3.62
Fwd EY5.44%
FCF(TTM)-1.12
FCFYN/A
OCF(TTM)7.94
OCFY11.93%
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 | 0.91 |
F-Score6
WACC6.93%
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 5Y7.52%
Revenue 1Y (TTM)-4.03%
Revenue growth 3Y3.76%
Revenue growth 5Y1.66%
Sales Q2Q%4.18%
Revenue Next Year-6.97%
Revenue Next 2Y-1.88%
Revenue Next 3Y-0.23%
Revenue Next 5Y1.8%
EBIT growth 1Y33.45%
EBIT growth 3Y-3.21%
EBIT growth 5Y1.23%
EBIT Next Year94.45%
EBIT Next 3Y31.22%
EBIT Next 5Y20.58%
FCF growth 1Y75.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y136.49%
OCF growth 3Y21.86%
OCF growth 5Y6.28%