CMS CMS Energy
$68.71
▲ 2.6%Updated Oct 16, 2:25 PM ET
Report Card
CMS at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Neutral · 54/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 6.7% in the year to Jul 6, 2026
Key Metrics
Market Cap
$24.01B
P/E
19.18x
Forward P/E (est.)
17.96x
ROE
12.3%
Revenue Growth
12.7%
EPS Growth
6.8%
Profit Margin
13.2%
FCF Yield
8.4%
Debt / Equity
2.07x
ROIC
8.0%
Interest Coverage
2.69x
Current Ratio
0.94x
Dividend Yield
3.1%
Implied Growth (rev. DCF)
—
Rating Score
54/100
Business Overview
CMS Energy (CMS) is a large-cap company in the Multi-Utilities industry, part of the Utilities sector of the S&P 500, with a market value around $24.01B.
In its latest reported year it generated about $8.54B in revenue and $1.07B in net profit.
Our model rates CMS Neutral (54/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (10 years of history).
Profit margins and economic moats, explainedThe numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
18.9% average over the last 3 years
±2.0 pts around 17.9% across 10 years
grew in 6 of the last 9 year-over-year periods
positive in 4 of 10 years
8.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what CMS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. CMS trades near $68.71, below its 50-day average ($74.12) and 200-day average ($73.83). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 70 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. CMS's is $1.45 (~2.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, CMS found buyers near $68.84 (support) and sellers near $78.87 (resistance); its 52-week range then was $68.63–$80.36. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
3.9%
Revenue moved from $6.40B in 2016 to $8.54B in 2025, a 3.3% compound annual growth rate. The most recent year grew a steady 12.7% year over year. Consistent top-line growth is one sign of healthy demand.
Profitability
Gross Margin
31.9%
Operating Margin
20.2%
Net Margin
12.5%
ROE
12.3%
CMS Energy keeps about 13.2% of each sales dollar as net profit, with a 31.9% gross margin and 20.2% operating margin. Return on equity is 12.3% and return on invested capital about 8.0%. Margins are moderate — typical of a competitive but profitable business.
Debt Analysis
Total Debt
$7.95B
Net Debt
$7.71B
Net Debt / EBITDA
4.47x
Debt / Equity
2.07x
Leverage: debt-to-equity is 2.1x, and operating profit covers interest about 2.7x, with a current ratio of 0.9x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $7.95B of total debt against $241.00M of cash.
Cash Flow Analysis
Operating CF
$2.23B
Free Cash Flow
$2.23B
FCF Margin
26.2%
In the latest year CMS Energy produced about $2.23B of operating cash flow and $2.23B of free cash flow after capital spending. That is a free-cash-flow yield of about 8.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Valuation Analysis
P/E
19.18x
P/S
2.81x
P/B
2.16x
EV / EBITDA
—
CMS trades at 19.2x trailing earnings (about 18.0x on estimated forward earnings), 2.8x sales, and 2.2x book value. That is a fairly typical valuation for a profitable company.
Metrics vs. Sector Range
Where CMS sits versus the Utilities companies we cover.
Bands show the middle half (25th–75th percentile) of the 38 Utilities companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How CMS stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.
Among the 38 rated Utilities companies we cover, CMS ranks #19 by our overall rating. It trades at roughly in line versus the sector on earnings (19.2x P/E vs. 20.5x median) with a higher return on equity (12.3% vs. 10.3%) and faster revenue growth (12.7% vs. 8.8%).
P/E vs sector
19.2x
median 20.5x
ROE vs sector
12.3%
median 10.3%
Growth vs sector
12.7%
median 8.8%
Sector rank
#19
of 38 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Utilities companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 38 rated companies among the 47 Utilities stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$64.38 – $111.19
vs. $68.71 today · implied CAGR -1% – 10%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $9.65B | $10.90B | $12.32B | $13.92B | $15.73B |
| Net income | $1.25B | $1.42B | $1.60B | $1.81B | $2.05B |
| EPS | $3.59 | $4.06 | $4.58 | $5.18 | $5.85 |
| Share price (low) | $39.48 | $44.62 | $50.42 | $56.97 | $64.38 |
| Share price (high) | $68.20 | $77.06 | $87.08 | $98.40 | $111.19 |
| CAGR (low–high) | -43% / -1% | -19% / 6% | -10% / 8% | -5% / 9% | -1% / 10% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for CMS:
- Revenue is growing 12.7% a year, a sign of real demand.
- Healthy free-cash-flow yield (~8.4%) funds buybacks and dividends.
- Pays a 3.1% dividend on top of any price gains.
Bear Case
The case against CMS:
- Elevated leverage (debt/equity 2.1x) adds financial risk.
- Interest coverage is thin (2.7x), so debt costs bite.
Key Risks
Balance-sheet risk — debt/equity of 2.1x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the picture is mixed: CMS Energy is a large-cap utilities business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 19.2x earnings, which our model scores Neutral (54/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 21 Wall Street analysts covering CMS recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
CMS's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
CMS — frequently asked questions
Is CMS a good stock to buy?
We don't give buy or sell advice. Our model rates CMS Energy Neutral (54/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is CMS's rating on The Stocks School?
CMS Energy currently scores 54/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does CMS's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from CMS Energy's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for CMS calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this CMS analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell CMS. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.