(CMS) CMS Energy - Overview
Sector: Utilities | Industry: Utilities - Regulated Electric | Exchange: NYSE (USA) | Market Cap: 22.749m USD | Total Return: 10% in 12m
Avg Turnover: 186M
EPS Trend: 85.9%
Qual. Beats: 1
Rev. Trend: 63.5%
Qual. Beats: 2
Warnings
High Debt while negative Cash Flow
Altman Z'' 0.57 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Confidence
CMS Energy Corporation is a Michigan-based energy provider operating through three core segments: Electric Utility, Gas Utility, and NorthStar Clean Energy. The company manages an extensive infrastructure network to serve approximately 1.9 million electric and 1.8 million gas customers across residential, commercial, and industrial sectors. Its generation portfolio is diversified across coal, wind, gas, and nuclear sources, while its NorthStar division focuses on independent power production and renewable energy development.
As a regulated utility, CMS Energy operates under a cost-of-service business model, where rates are set by state regulators to allow for the recovery of capital investments plus a reasonable rate of return. This structure typically provides more predictable cash flows compared to non-regulated industries, though it requires significant ongoing capital expenditure to maintain and modernize aging grid infrastructure. Detailed performance metrics and valuation models are available on ValueRay for those seeking deeper fundamental analysis.
- Michigan Public Service Commission rate case approvals dictate utility revenue growth
- Clean energy transition capital expenditures drive long-term rate base expansion
- Fluctuating natural gas prices impact residential and industrial heating demand
- Interest rate volatility affects financing costs for large scale infrastructure projects
- Extreme weather events influence maintenance costs and energy distribution reliability
| Net Income: 1.11b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.05 > 0.02 and ΔFCF/TA -2.63 > 1.0 |
| NWC/Revenue: -6.43% < 20% (prev 1.99%; Δ -8.42% < -1%) |
| CFO/TA 0.05 > 3% & CFO 1.94b > Net Income 1.11b |
| Net Debt (19.1b) to EBITDA (3.23b): 5.90 < 3 |
| Current Ratio: 0.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (300.6m) vs 12m ago 0.49% < -2% |
| Gross Margin: 40.79% > 18% (prev 0.43%; Δ 4.04k% > 0.5%) |
| Asset Turnover: 23.04% > 50% (prev 21.45%; Δ 1.59% > 0%) |
| Interest Coverage Ratio: 2.56 > 6 (EBITDA TTM 3.23b / Interest Expense TTM 805.0m) |
| A: -0.01 (Total Current Assets 3.02b - Total Current Liabilities 3.59b) / Total Assets 40.3b |
| B: 0.06 (Retained Earnings 2.60b / Total Assets 40.3b) |
| C: 0.05 (EBIT TTM 2.06b / Avg Total Assets 38.3b) |
| D: 0.09 (Book Value of Equity 2.57b / Total Liabilities 30.2b) |
| Altman-Z'' = 0.57 = B |
| DSRI: 1.22 (Receivables 1.42b/1.03b, Revenue 8.82b/7.79b) |
| GMI: 1.04 (GM 40.79% / 42.61%) |
| AQI: 0.92 (AQ_t 0.14 / AQ_t-1 0.15) |
| SGI: 1.13 (Revenue 8.82b / 7.79b) |
| TATA: -0.02 (NI 1.11b - CFO 1.94b) / TA 40.3b) |
| Beneish M = -2.78 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 74.53 with a total of 2,153,900 shares traded.
Over the past week, the price has changed by +4.03%,
over one month by -1.24%,
over three months by -1.93% and
over the past year by +10.02%.
CMS Energy has received a consensus analysts rating of 3.79. Therefore, it is recommended to hold CMS.
- StrongBuy: 6
- Buy: 4
- Hold: 8
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 81.1 | 8.9% |
P/E Trailing = 20.3425
P/E Forward = 19.0476
P/S = 2.5786
P/B = 2.4615
P/EG = 2.8437
Revenue TTM = 8.82b USD
EBIT TTM = 2.06b USD
EBITDA TTM = 3.23b USD
Long Term Debt = 17.5b USD (from longTermDebt, last quarter)
Short Term Debt = 1.36b USD (from shortTermDebt, last quarter)
Debt = 19.3b USD (from shortLongTermDebtTotal, last quarter) + Leases 262.0m
Net Debt = 19.1b USD (calculated: Debt 19.3b - CCE 263.0m)
Enterprise Value = 41.8b USD (22.7b + Debt 19.3b - CCE 263.0m)
Interest Coverage Ratio = 2.56 (Ebit TTM 2.06b / Interest Expense TTM 805.0m)
EV/FCF = -20.55x (Enterprise Value 41.8b / FCF TTM -2.04b)
FCF Yield = -4.87% (FCF TTM -2.04b / Enterprise Value 41.8b)
FCF Margin = -23.07% (FCF TTM -2.04b / Revenue TTM 8.82b)
Net Margin = 12.55% (Net Income TTM 1.11b / Revenue TTM 8.82b)
Gross Margin = 40.79% ((Revenue TTM 8.82b - Cost of Revenue TTM 5.22b) / Revenue TTM)
Gross Margin QoQ = 56.52% (prev 33.76%)
Tobins Q-Ratio = 1.04 (Enterprise Value 41.8b / Total Assets 40.3b)
Interest Expense / Debt = 4.16% (Interest Expense 805.0m / Debt 19.3b)
Taxrate = 23.48% (85.0m / 362.0m)
NOPAT = 1.57b (EBIT 2.06b * (1 - 23.48%))
Current Ratio = 0.84 (Total Current Assets 3.02b / Total Current Liabilities 3.59b)
Debt / Equity = 2.04 (Debt 19.3b / totalStockholderEquity, last quarter 9.47b)
Debt / EBITDA = 5.90 (Net Debt 19.1b / EBITDA 3.23b)
Debt / FCF = -9.37 (negative FCF - burning cash) (Net Debt 19.1b / FCF TTM -2.04b)
Total Stockholder Equity = 8.97b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.89% (Net Income 1.11b / Total Assets 40.3b)
RoE = 12.35% (Net Income TTM 1.11b / Total Stockholder Equity 8.97b)
RoCE = 7.78% (EBIT 2.06b / Capital Employed (Equity 8.97b + L.T.Debt 17.5b))
RoIC = 4.14% (NOPAT 1.57b / Invested Capital 38.0b)
WACC = 4.49% (E(22.7b)/V(42.1b) * Re(5.60%) + D(19.3b)/V(42.1b) * Rd(4.16%) * (1-Tc(0.23)))
Discount Rate = 5.60% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 93.21 | Cagr: 0.93%
[DCF] Fair Price = unknown (Cash Flow -2.04b)
EPS Correlation: 85.91 | EPS CAGR: 11.31% | SUE: 1.41 | # QB: 1
Revenue Correlation: 63.45 | Revenue CAGR: 4.34% | SUE: 0.94 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.78 | Chg30d=+9.55% | Revisions=+27% | Analysts=11
EPS next Quarter (2026-09-30): EPS=1.06 | Chg30d=+3.68% | Revisions=+40% | Analysts=11
EPS current Year (2026-12-31): EPS=3.88 | Chg30d=+0.25% | Revisions=+33% | GrowthEPS=+7.6% | GrowthRev=+4.5%
EPS next Year (2027-12-31): EPS=4.17 | Chg30d=-0.04% | Revisions=-33% | GrowthEPS=+7.4% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: +40%