Cms Energy Corp (CMS)
Utilities · Multi-Utilities · US stock · S&P 500 component
$70.30
▲ +2.17 (3.19%)
Fair valueUndervalued
$87 +23.8% to fair value
$44fair band $74–$106$131
Day's range
$68.34 – $70.37
52-week range
$62.29 – $80.36
About Cms Energy Corp
CMS Energy is a Michigan energy company whose main subsidiary, Consumers Energy, provides electricity and natural gas to customers across much of the state. It generates and distributes electricity from a mix of sources including gas, wind, solar and coal, and runs natural gas pipelines and storage. A smaller non-utility arm, NorthStar Clean Energy, invests in independent power and related energy businesses. Customers are residential, commercial and industrial users.
Revenue comes mostly from regulated rates charged to customers and approved by Michigan regulators. It totals $8.8 billion over the last twelve months, with revenue growth over three years of -0.2% a year. The operating margin is 18.9%, and the business earns a profit of 5% on the capital invested in it. CMS carries net debt of 6.2 times EBITDA, and the dividend yield is 3.2%. On the site's X-Ray Score it receives 46 out of 100.
Price chart
52-wk range $62.29 – $80.36Volume 4,459,306Daily, split-adjusted
Vitals
Market cap$21.8B
52-week range$62.29 – $80.36
Volume (last day)4,459,306
P/E (TTM)20.9
EBIT / EV yield4.0%
Free-cash-flow yield–
Dividend yield3.2%
Revenue (TTM)$8.8B
Net income (TTM)$1.0B
Operating margin18.9%
Return on capital4.6%
Debt incl. leases$19.0B
Cash & securities$241M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$87middle half of models $70 – $101
Undervalued
+23.8% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $70
Undervalued < $74Fair $74 – $106Overvalued > $106
P/E multiple
$70
P/B multiple
$74
P/S multiple
$70
EV/EBITDA multiple
$70
EV/EBIT multiple
$70
EV/revenue multiple
$70
10-year DCF, EBITDA exit
$122
5-year DCF, EBITDA exit
$102
10-year DCF, revenue exit
$122
5-year DCF, revenue exit
$101
10-year DCF, growth exit
$100
5-year DCF, growth exit
$77
Dividend discount, stable
$116
Dividend discount, multi-stage · not used
$220
Earnings power value
$57
Growth the price implies
12.3%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, but the price is low
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Utilities peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
61/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield4.0%
Fair value vs price1.2×
Growth
Fair
50/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)-0.2%
EPS growth (3y)7.4%
Growth consistency80%
Profitability
Weak
33/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital4.6%
Operating margin18.9%
Financial health
Weak
45/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA6.2×
Interest cover2.0×
Dividends
Weak
31/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield3.2%
Quarterly results: last 6 quarters
+12.5%
Mar '25
+14.4%
Jun '25
+15.9%
Sep '25
+12.3%
Dec '25
+11.6%
Mar '26
-0.5%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.8B, diluted EPS $0.37.
Compare with peers
ED Consolidated Edison In...70 NI Nisource Inc.54 AEE Ameren Corp54 DTB Dte Energy Co54Other Multi-Utilities companies by X-Ray Score.
SWOT analysis: Cms Energy Corp
Strengthsinside the company
- No standout strength in the figures we track.
Weaknessesinside the company
- Return on invested capital is only 4.6% (median 4.9% for industry peers), so the business earns little above its cost of capital.
- Revenue has fallen 0.2% a year over three years while industry peers grew 3.7%.
- Net debt is 6.2x EBITDA, above the 3x level that lenders usually watch.
- Operating profit covers interest only 2.0x.
Opportunitiesvaluation and setting
- Revenue growth picked up to 13.6% last year from -0.2% a year over three years.
- The price is 24% below our fair value estimate, with the gap larger than the margin we allow for error.
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Our Market Compass rates the backdrop for Utilities as unfavourable.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare CMS with peers and sector
Medians of 11 Multi-Utilities peers and of 30 Utilities stocks in our universe.
Largest peers (X-Ray Score): NEE 45, D 53, SRE 33, XEL 27, ED 70, AEE 54.
| Metric | CMS | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 46 | 45 | 51 |
| Valuation | 61 | 40 | 49 |
| Growth | 50 | 53 | 53 |
| Profitability | 33 | 41 | 50 |
| Financial health | 45 | 47 | 52 |
| Dividends | 31 | 55 | 55 |
Sector leaders: highest X-Ray Score in Utilities
CMS ranks #19 of 31 in Utilities and #6 of 12 in Multi-Utilities by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for CMS
Each factor is rated by where CMS stands among the 31 Utilities stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 2 Good · 12 Average · 4 Bad of 18
Growth: 1 · 1 · 1
Profitability: 0 · 2 · 2
Financial strength: 0 · 3 · 1
Valuation: 0 · 4 · 0
Cash flow: 1 · 2 · 0
| Factor | CMS | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | −0.2% | Bad beats 18% | +3.4% | – | – |
| Revenue growth, last year | +13.6% | Good beats 78% | +9.6% | +13.6% | ≈ In line |
| EPS growth, 3 years a year | +7.4% | Average beats 46% | +8.1% | – | – |
| Profitability | |||||
| Operating margin | 18.9% | Bad beats 25% | 22.9% | 16.6% | ▲ Better |
| Net margin | 11.6% | Average beats 35% | 14.4% | 12.5% | ≈ In line |
| Return on invested capital | 4.6% | Bad beats 15% | 5.5% | – | – |
| Return on equity | 10.5% | Average beats 60% | 10.1% | 11.9% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 6.2x | Average beats 42% | 5.8x | 6.0x | ≈ In line |
| Interest cover | 2.0x | Bad beats 24% | 2.5x | 2.2x | ≈ In line |
| Current ratio | 0.94 | Average beats 63% | 0.78 | 0.98 | ≈ In line |
| Piotroski F-score | 6 / 9 | Average beats 58% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 21.3x | Average beats 56% | 21.8x | 19.7x | ≈ In line |
| Price / book | 2.2x | Average beats 37% | 2.1x | 2.4x | ≈ In line |
| Price / sales | 2.5x | Average beats 62% | 2.9x | 2.5x | ≈ In line |
| EV / EBITDA | 13.7x | Average beats 53% | 14.0x | 13.4x | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 24.4% | Good beats 82% | -9.1% | 26.2% | ≈ In line |
| Cash from operations / net income | 2.09 | Average beats 37% | 2.20 | 2.09 | ≈ In line |
| Accruals (lower is better) | −2.7% | Average beats 37% | −3.3% | – | – |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 1 Good · ● 8 Average · ● 4 BadCash quality
Earnings backed by cashAverage
Risk models
Altman Z''Average
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Average
Revenue growth (3y)Bad
Growth consistencyAverage
Balance sheet
Current ratioAverage
Net debt / EBITDAAverage
Interest coverBad
Valuation
Fair value vs priceGood
EBIT / EV yieldAverage
Profitability
Return on invested capitalBad
Operating marginBad
Each check is graded against the company's sector, not a fixed number. Checklist score 39/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $7.3B | $8.6B | $7.5B | $7.5B | $8.5B |
| Operating income | $1.1B | $1.2B | $1.2B | $1.5B | $1.7B |
| Net income | $1.4B | $837M | $887M | $1.0B | $1.1B |
| Operating cash flow | $1.8B | $855M | $2.3B | $2.4B | $2.2B |
| Operating margin | 15.6% | 14.2% | 16.6% | 19.8% | 20.2% |
| Free cash flow | −$257M | −$1.5B | – | – | – |
| Diluted EPS | $4.66 | $2.85 | $3.01 | $3.33 | $3.53 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
11 bullish · 0 neutral · 5 bearish
Weekly
Bullish
7 bullish · 1 neutral · 4 bearish
Monthly
Neutral
4 bullish · 1 neutral · 3 bearish
Moving averages (daily)
| SMA 10 | 67.43 | Bullish |
| EMA 10 | 67.64 | Bullish |
| SMA 20 | 65.67 | Bullish |
| EMA 20 | 66.76 | Bullish |
| SMA 50 | 66.94 | Bullish |
| EMA 50 | 67.34 | Bullish |
| SMA 100 | 70.06 | Bullish |
| EMA 100 | 69.03 | Bullish |
| SMA 200 | 71.85 | Bearish |
| EMA 200 | 70.24 | Bullish |
Oscillators (daily)
| RSI (14) | 70.17 | Bearish |
| MACD (12, 26) | 0.70 | Bullish |
| Momentum (12) | 8.04 | Bullish |
| Stochastic %K (14) | 99.07 | Bearish |
| Williams %R (14) | -0.93 | Bearish |
| CCI (20) | 157.8 | Bearish |
Pivot points (classic, last session)
S3 66.95 | S2 67.64 | S1 68.97 | Pivot 69.67 | R1 71.00 | R2 71.69 | R3 73.02 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
2.25 USD
Yield on today's price
3.20%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.5700 | |
| 0.5700 | |
| 0.5700 | |
| 0.5425 | |
| 0.5425 | |
| 0.5425 | |
| 0.5425 | |
| 0.5150 | |
| 0.5150 | |
| 0.5150 | |
| 0.5150 | |
| 0.4875 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold CMS
| ETF | Share of the fund |
|---|---|
| XLU Utilities Select Sector SPDR | 1.66% |
| VPU Vanguard Utilities | 1.45% |
| FUTY Fidelity MSCI Utilities Index | 1.44% |
| IDU iShares U.S. Utilities | 1.37% |
| SPLV Invesco S&P 500 Low Volatility | 1.18% |
| MFSV MFS Active Value | 1.04% |
| EMLP First Trust North American Energy Infr... | 0.94% |
| DVY iShares Select Dividend | 0.92% |
The eight funds with the largest weight in CMS among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
CMS SEC filings
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Other events
424B5SEC EDGAR
424B5
8-KSEC EDGAR
Shareholder vote results
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.