CMS Energy Corporation 5.875% J
CMS Energy Corporation 5.875% J Fundamental Analysis
CMS Energy Corporation 5.875% J (CMSC) shows moderate financial fundamentals with a PE ratio of 6.65, profit margin of 12.54%, and ROE of 12.33%. The company generates $8.8B 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 39.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CMSC's fundamental strength across five key dimensions:
Efficiency Score
WeakCMSC struggles to generate sufficient returns from assets.
Valuation Score
ModerateCMSC shows balanced valuation metrics.
Growth Score
ModerateCMSC shows steady but slowing expansion.
Financial Health Score
ModerateCMSC shows balanced financial health with some risks.
Profitability Score
WeakCMSC struggles to sustain strong margins.
Key Financial Metrics
Is CMSC Expensive or Cheap?
P/E Ratio
CMSC trades at 6.65 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CMSC's PEG of 2.89 indicates potential overvaluation.
Price to Book
The market values CMS Energy Corporation 5.875% J at 0.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.63 times EBITDA. This is generally considered low.
How Well Does CMSC Make Money?
Net Profit Margin
For every $100 in sales, CMS Energy Corporation 5.875% J 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 5.875% J generates $2.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CMS Energy Corporation 5.875% J generates strong operating cash flow of $2.29B, reflecting robust business health.
Free Cash Flow
CMS Energy Corporation 5.875% J generates strong free cash flow of $2.29B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.49 in free cash annually.
FCF Yield
CMSC converts 30.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.23
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 CMSC Stacks Against Its Sector Peers
| Metric | CMSC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.65 | 19.20 | Better (Cheaper) |
| ROE | 12.33% | 1033.00% | Weak |
| Net Margin | 12.54% | 9191.00% | Weak |
| Debt/Equity | 2.07 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 1.23 | 1.68 | Neutral |
| ROA | 2.68% | -237.00% (disorted) | Weak |
CMSC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CMS Energy Corporation 5.875% J'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