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CMS Energy Corporation (CMS) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

CMS Energy Corporation

CMSMarket cap $20BPrice $65.1

Country🇺🇸United States

SectorUtilities

IndustryMulti-Utilities

Supplies electricity and natural gas to nearly two-thirds of Michigan's population through its utility Consumers Energy. One of the few utilities that owns the entire energy chain, from generation to delivery, in a single state.

In Bastion Portfolios?

52W Return-11%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-0%3

Revenue Forecast

Rev CAGR (1y)+5%4

Rev CAGR (3y)+5%4

Rev CAGR (5y)+4%4

Earnings Forecast

EPS Growth Y+1+8%6

EPS Growth Y+2+10%7

EPS Growth Y+3+10%7

Quality

Margins

EBIT Margin21%8

Net Income Margin12%6

Free Cash Flow Margin-22%2

Debt

Net Debt/EBITDA6.01

Efficiency

ROE11%5

ROA2%4

Earnings Stability55

GEAR+AVERAGE36

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)156

P/E Ratio (Forward 3y)145

P/BV2.16

EV Multiples

EV/EBITDA Fwd115

EV/EBIT Fwd204

Yield

Free Cash Flow Yield-9.4%1

Dividend Yield3.5%8

Momentum

Short term

1 month return-5%5

3 month return-14%2

YTD return-5%4

Mid term

Price vs 52wHigh82%6

1 year return-8%4

Long term

3 year return+35%5

5 year return+26%5

Risk Shield

Price Risk

Beta-0.110

Volatility17%10

Free Cash Flow

Free Cash Flow Margin-22%2

Free Cash Flow Yield-9.4%1

Quality

ROCE5%3

Earnings Stability55

Net Debt/EBITDA6.01

02Growth

Is it actually growing, and how fast?

CMSCMS Energy

Revenue FY25$8.5B

GROWTH RATING↗

WEAK34 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-0%3

Revenue, next 1Y+5%4

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+4%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+8%6

EPS growth, FY27E+10%7

EPS growth, FY28E+10%7

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 5%/yr from here.

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 5%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 34% of companies worldwide.

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

Over five years revenue is set to grow 4%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

Revenue held flat over the last 3 years, behind 70% of companies worldwide.3/10

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK31 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return-14%2

YTD return-5%4

MID & LONG-TERM▾SCORE

% of 52-week high82%6

1-year return-8%4

3-year return+35%5

5-year return+26%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+35% over three years and +26% over five), roughly average for the market.

It's down 8% over the past year, now 18% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-5%) and so far this year (-5%).

WEAKNESSES

The stock is underperforming over three months (-14%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the stock is underperforming over three months.

04Value

Are you paying a fair price for it?

Stop guessing on CMS Energy Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

CMSCMS Energy

Revenue FY25$8.5B

GROWTH RATING↗

WEAK34 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-0%3

Revenue, next 1Y+5%4

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+4%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+8%6

EPS growth, FY27E+10%7

EPS growth, FY28E+10%7

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 5%/yr from here.

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 5%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 34% of companies worldwide.

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

Over five years revenue is set to grow 4%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

Revenue held flat over the last 3 years, behind 70% of companies worldwide.3/10

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK31 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return-14%2

YTD return-5%4

MID & LONG-TERM▾SCORE

% of 52-week high82%6

1-year return-8%4

3-year return+35%5

5-year return+26%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+35% over three years and +26% over five), roughly average for the market.

It's down 8% over the past year, now 18% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-5%) and so far this year (-5%).

WEAKNESSES

The stock is underperforming over three months (-14%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on CMS Energy Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community