CMS Energy Corporation
CMS Energy Corporation Fundamental Analysis
CMS Energy Corporation (CMS-PC) shows moderate financial fundamentals with a PE ratio of 21.38, profit margin of 12.54%, and ROE of 12.33%. The company generates $8.5B in annual revenue with weak year-over-year growth of 0.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CMS-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakCMS-PC struggles to generate sufficient returns from assets.
Valuation Score
ModerateCMS-PC shows balanced valuation metrics.
Growth Score
ModerateCMS-PC shows steady but slowing expansion.
Financial Health Score
WeakCMS-PC carries high financial risk with limited liquidity.
Profitability Score
WeakCMS-PC struggles to sustain strong margins.
Key Financial Metrics
Is CMS-PC Expensive or Cheap?
P/E Ratio
CMS-PC trades at 21.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CMS-PC's PEG of 12.36 indicates potential overvaluation.
Price to Book
The market values CMS Energy Corporation at 2.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.59 times EBITDA. This is generally considered low.
How Well Does CMS-PC Make Money?
Net Profit Margin
For every $100 in sales, CMS Energy Corporation keeps $12.54 as profit after all expenses.
Operating Margin
Core operations generate 20.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.33 in profit for every $100 of shareholder equity.
ROA
CMS Energy Corporation generates $2.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CMS Energy Corporation generates strong operating cash flow of $2.23B, reflecting robust business health.
Free Cash Flow
CMS Energy Corporation generates weak or negative free cash flow of $-1.63B, restricting financial flexibility.
FCF Per Share
Each share generates $-5.41 in free cash annually.
FCF Yield
CMS-PC converts -6.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How CMS-PC Stacks Against Its Sector Peers
| Metric | CMS-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.38 | 19.20 | Worse (Expensive) |
| ROE | 12.33% | 1033.00% | Weak |
| Net Margin | 12.54% | 9191.00% | Weak |
| Debt/Equity | 2.07 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 0.98 | 1.68 | Weak Liquidity |
| ROA | 2.65% | -237.00% (disorted) | Weak |
CMS-PC outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CMS Energy Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.89%
Industry Style: Defensive, Dividend, Income
GrowingEPS CAGR
40.26%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
25.91%
Industry Style: Defensive, Dividend, Income
High Growth