One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
CMS Energy Corporation
CMS · NYQ · Utilities · Utilities - Regulated Electric
Current price
$66.94
52-week range
$62.29 - $80.36
Market cap
$20.99B
Balance sheet
Distressed
2.16x Stretched
Net debt $19.06B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.2% last year.
- Reward Returns 9.2% on equity, ahead of 33% of its peers.
- Reward Trades at 19.9x P/E vs peer median 21.5x (7.2% cheaper).
- Risk Net debt grew 30.0% over 3 years.
What this company does
CMS Energy Corporation
CMS Energy Corporation mainly sells electricity and natural gas to homes and businesses in Michigan. Their income comes from customers paying their utility bills, which is important because these are essential services people need every day. The company also has a newer part that focuses on making clean energy, which helps them diversify their business beyond just traditional power sources.
How the company got here
CMS Energy Corporation was incorporated in 1987, bringing together various energy operations in Michigan. Over the years, it has evolved to meet changing energy needs and regulatory landscapes. A key focus has been on modernizing its infrastructure to ensure reliable service for its customers across the state. The company has also been navigating the transition towards cleaner energy sources, which is a significant shift for a utility provider.
What it actually does
CMS Energy is essentially a large utility company that provides electricity and natural gas to homes and businesses in Michigan. Think of it like the company that sends you your monthly bill for power and heating. It generates, buys, and delivers these essential energy resources, managing a vast network of power plants, pipelines, and distribution lines to ensure a steady supply.
Electric Utility
This is the largest part of CMS Energy's business, responsible for providing electricity to about 1.9 million customers. It's like the part of the company that powers your lights, TV, and all your electric appliances. They generate electricity from various sources, including coal, wind, gas, and renewables, and then deliver it through a massive network of overhead and underground lines. This segment is crucial for the daily lives of millions of people and businesses in Michigan.
Gas Utility
This segment focuses on delivering natural gas to approximately 1.8 million customers, primarily for heating homes and powering businesses. It's the part of CMS Energy that ensures your furnace keeps your house warm in the winter. They purchase, transport, and distribute natural gas through a system of transmission lines, storage fields, and distribution mains. This business is vital for providing essential heating and energy services, especially during colder months.
NorthStar Clean Energy
This is a smaller but growing part of CMS Energy, focused on developing and operating renewable energy projects. Think of this as the company's investment in the future of energy, like building solar farms or wind turbines. It's involved in independent power production, meaning it generates electricity from cleaner sources and sells it. This segment reflects the broader industry trend towards sustainability and reducing reliance on fossil fuels.
What management is betting on now
CMS Energy's management is focused on investing heavily in modernizing its energy infrastructure to ensure reliability and meet future demand. A major priority is the transition to cleaner energy sources, which involves retiring older power plants and developing more renewable energy capacity. They are also focused on improving operational efficiency to manage costs effectively. These strategic moves are aimed at ensuring the company can provide safe, reliable, and increasingly sustainable energy for its customers while navigating a changing energy landscape.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-502.00M
FY2025 Q1
$112.00M
FY2025 Q2
$-470.00M
FY2025 Q3
$-635.00M
FY2026 Q1
$-334.00M
FY2026 Q2
$-345.00M
Revenue
$1.83B
Net income
$120.00M
Diluted EPS
0.37
Operating cash flow
$622.00M
Free cash flow
$-345.00M
Fetching…
Sources
Revenue
$2.73B
Net income
$340.00M
Diluted EPS
1.10
Operating cash flow
$705.00M
Free cash flow
$-334.00M
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Sources
Revenue
$2.23B
Net income
$289.00M
Diluted EPS
0.94
Operating cash flow
$478.00M
Free cash flow
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Sources
Revenue
$2.02B
Net income
$277.00M
Diluted EPS
0.92
Operating cash flow
$343.00M
Free cash flow
$-635.00M
Fetching…
Sources
Revenue
$1.84B
Net income
$201.00M
Diluted EPS
0.66
Operating cash flow
$414.00M
Free cash flow
$-470.00M
Fetching…
Sources
Revenue
$2.45B
Net income
$304.00M
Diluted EPS
1.01
Operating cash flow
$1.00B
Free cash flow
$112.00M
Fetching…
Sources
Revenue
$1.99B
Net income
$265.00M
Diluted EPS
0.88
Operating cash flow
$403.00M
Free cash flow
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Sources
Revenue
$1.74B
Net income
$253.00M
Diluted EPS
0.84
Operating cash flow
$304.00M
Free cash flow
$-502.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $66.94
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $19.1B. Interest coverage 2.2x.
Net debt
$19.06B
Interest coverage
2.16x
CMS Energy Corporation's profit covers its interest bill about 2.2 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
CMS
BASELINE
CMS Energy Corporation
Total debt $19.30B Interest coverage 2.16x This is the baseline the peer rows are being compared against.
Total debt $53.93B Interest coverage 2.44x +13% vs CMS Has roughly the same debt cushion as CMS.
Total debt $41.65B Interest coverage 2.14x -1% vs CMS Has roughly the same debt cushion as CMS.
Total debt $36.66B Interest coverage 2.01x -7% vs CMS Has roughly the same debt cushion as CMS.
Total debt $53.53B Interest coverage 2.66x +23% vs CMS Carries about 1.2x more debt cushion than CMS.
Total debt $43.54B Interest coverage 3.40x +57% vs CMS Carries about 1.6x more debt cushion than CMS.
What you should know
The case for and against CMS
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.2% last year.
-
Returns 9.2% on equity, ahead of 33% of its peers.
-
Trades at 19.9x P/E vs peer median 21.5x (7.2% cheaper).
Risks
-
Net debt grew 30.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.92x
Forward P/E
16.11x
P/B
2.20x
P/S
2.38x
EV/EBITDA
13.55x
PEG ratio
2.41x
Profitability
How much profit each dollar creates
Gross margin
40.3%
Operating margin
17.2%
Net margin
11.6%
ROE
9.2%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.86x
Current ratio
0.94x
Quick ratio
0.41x
Total debt
$19.30B
Total cash
$241.00M
Growth
How the business has been compounding
Revenue TTM
$8.81B
Revenue 5Y CAGR
3.9%
EPS TTM
3.36
EPS 5Y CAGR
6.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.15B
Free CF TTM
$-1.80B
FCF margin
-20.5%
Dividend
Shareholder payout
Yield
3.4%
Payout ratio
66.8%
Last ex-div date
2026-08-07