CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 Fundamental Analysis
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) shows moderate financial fundamentals with a PE ratio of 6.62, 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 38.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CMSD's fundamental strength across five key dimensions:
Efficiency Score
WeakCMSD struggles to generate sufficient returns from assets.
Valuation Score
ModerateCMSD shows balanced valuation metrics.
Growth Score
ModerateCMSD shows steady but slowing expansion.
Financial Health Score
WeakCMSD carries high financial risk with limited liquidity.
Profitability Score
WeakCMSD struggles to sustain strong margins.
Key Financial Metrics
Is CMSD Expensive or Cheap?
P/E Ratio
CMSD trades at 6.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CMSD's PEG of 3.83 indicates potential overvaluation.
Price to Book
The market values CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 at 0.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.65 times EBITDA. This is generally considered low.
How Well Does CMSD Make Money?
Net Profit Margin
For every $100 in sales, CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 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% Junior Subordinated Notes due 2079 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% Junior Subordinated Notes due 2079 generates strong operating cash flow of $2.29B, reflecting robust business health.
Free Cash Flow
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 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
CMSD converts 30.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.85
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 CMSD Stacks Against Its Sector Peers
| Metric | CMSD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.62 | 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 | 0.98 | 1.68 | Weak Liquidity |
| ROA | 2.68% | -237.00% (disorted) | Weak |
CMSD 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% Junior Subordinated Notes due 2079'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