Skip to content

CMS

S&P 500
Neutral · 54/100

CMS Energy

Utilities
Multi-Utilities

$73.80

0.6%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 6.7% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$22.67B

P/E

20.48x

Forward P/E (est.)

19.18x

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

0.84x

Dividend Yield

3.1%

Implied Growth (rev. DCF)

Rating Score

54/100

Technical Analysis (Educational)
Research

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 $73.80, around its 50-day average ($74.49) and 200-day average ($73.58). Price tangled in its moving averages means there is no clear trend — the stock is ranging.

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 51 it is in neutral territory — neither stretched nor washed out.

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 $1.59 (~2.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month CMS found buyers near $68.84 (support) and sellers near $75.00 (resistance); its 52-week range is $68.41–$80.36. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.6× 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. It updates daily as the price and indicators change.

Business Overview
Research

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 $22.67B.

In its latest reported year it generated about $8.30B 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.

Revenue Growth
Research

4Y CAGR

4.1%

Revenue moved from $7.08B in 2021 to $8.30B in 2025, a 4.1% 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
Research

Gross Margin

31.9%

Operating Margin

20.8%

Net Margin

12.9%

ROE

12.3%

CMS Energy keeps about 13.2% of each sales dollar as net profit, with a 31.9% gross margin and 20.8% 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
Research

Total Debt

$7.95B

Net Debt

$7.78B

Net Debt / EBITDA

4.5x

Debt / Equity

2.07x

Leverage: debt-to-equity is 2.1x, and operating profit covers interest about 2.7x, with a current ratio of 0.8x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $7.95B of total debt against $175.00M of cash.

Cash Flow Analysis
Research

Operating CF

$2.23B

Free Cash Flow

$2.23B

FCF Margin

26.9%

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
Research

P/E

20.48x

P/S

2.81x

P/B

2.31x

EV / EBITDA

10.1x

CMS trades at 20.5x trailing earnings (about 19.2x on estimated forward earnings), 2.8x sales, and 2.3x book value. That is a fairly typical valuation for a profitable company.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
20.5xFair
Forward P/E
19.2xFair
P/S ratio
2.8xExpensive
Revenue growth
12.7%Strong
EPS growth
6.8%Weak
Gross margin
31.9%Weak
Net margin
13.2%Strong
ROE
12.3%Average

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How CMS stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.

In the Utilities sector (31 S&P 500 companies), CMS ranks #16 of 31 by our overall rating. It trades at roughly in line versus the sector on earnings (20.5x P/E vs. 21.8x median) with a higher return on equity (12.3% vs. 10.4%) and faster revenue growth (12.7% vs. 9.0%).

P/E vs sector

20.5x

median 21.8x

ROE vs sector

12.3%

median 10.4%

Growth vs sector

12.7%

median 9.0%

Sector rank

#16

of 31 by rating

CompanyP/ERev Gr.Rating
CMSThis stock20.5x12.7%Neutral· 54
NI23.4x15.7%Neutral· 57
CNP26x1.4%Weak· 37
AEE19.7x12.3%Favorable· 64
DTE24.4x-15.5%Weak· 34
PCG12.3x5.3%Neutral· 51
ED18.1x9.1%Neutral· 56
PNW19.1x4.8%Neutral· 50
Utilities median21.8x9.0%54/100

Valuation vs. quality map

sector medianNICNPAEEDTEPCGEDPNWCMSP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Utilities companies by sub-industry and size. Sector median is across all 31 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$77.27$128.78

vs. $73.80 today · expected CAGR 1%12%

Metric20262027202820292030
Revenue$9.38B$10.60B$11.98B$13.54B$15.30B
Net income$1.22B$1.38B$1.56B$1.76B$1.99B
EPS$3.95$4.46$5.04$5.70$6.44
Share price (low)$47.39$53.55$60.51$68.38$77.27
Share price (high)$78.99$89.25$100.86$113.97$128.78
CAGR (low–high)-36% / 7%-15% / 10%-6% / 11%-2% / 11%1% / 12%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your 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
Research

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
Research

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 20.5x earnings, which our model scores Neutral (54/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

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.