CMS Energy (CMS) AI Stock Analysis

• Market Cap: $23.92B
• Dividend Yield: 3.1%
• Average Volume (3M): 3.32M
• Price to Earnings (P/E): 22.1
• Beta (1Y): -0.01
• Revenue Growth: 10.96%
• EPS Growth: -0.77%
• Country: US
• Employees: 8,324
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.95
• Shares Outstanding: 306,420,900
• 10 Day Avg. Volume: 3,393,990
• 30 Day Avg. Volume: 3,315,423
• PEG Ratio: 3.45
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 2.46
• P/FCF Ratio: -13.23
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 4.94
• Enterprise Value/Gross Profit: 8.11
• Enterprise Value/Ebitda: 13.24
• 1Y Price Target: $81.11
• Price Target Upside: 3.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 3.87
• Revenue Forecast (FY): $8.63B

• Rating: 66 Neutral
• Price Target: $82.00 ▲(5.03% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven by constructive technical strength and a positive earnings-call outlook (raised guidance and visible investment/rate-base growth), partially offset by financial-profile constraints typical for the sector—rising debt and historically negative free cash flow—plus some data-quality uncertainty in 2025 line items.

Positive Factors

Rate-base & capital investment growth

A larger five‑year $24B investment plan and ~10.5% rate‑base growth provide durable, regulated earnings tailwinds: higher allowed rate base expands the utility’s earnings base and cash flow predictability over multiple years, underpinning long‑term revenue and return stability.

Long-term renewables growth pipeline

Regulatory approval of a 20‑year renewables plan creates multi‑year capital deployment visibility and customer‑backed demand for solar/wind. This diversifies generation, secures long‑dated project opportunities and predictable recovery mechanisms that support sustainable earnings growth beyond short‑term commodity swings.

Improving cash generation and funding flexibility

Stronger operating cash flow funding recent investments, combined with affirmed credit and access to well‑priced financings, gives durable financing capacity for heavy capex. Consistent OCF and investment‑grade status reduce refinancing risk and support multi‑year capital plans and dividend policy.

Negative Factors

Elevated and rising leverage

A material increase in total debt constrains financial flexibility and raises sensitivity to interest costs and refinancing risk. For a capex‑intensive utility, higher leverage increases reliance on external funding and magnifies downside to credit metrics if regulatory outcomes or cash flow slip.

Persistent negative free cash flow

Consistent FCF deficits from heavy capex mean the company repeatedly depends on external financing and equity issuance to fund growth. This dynamic can dilute shareholders, introduce financing timing risk, and creates volatility in true cash conversion despite improving operating cash flow.

Regulatory/ROE uncertainty

A preliminary ALJ recommendation for a materially lower ROE threatens allowed returns on invested capital. Lower authorized ROEs or revenue deficiencies can reduce long‑term earnings power and undermine planned investments until final regulatory resolution, creating persistent policy risk for a regulated utility.

CMS Energy Business Overview & Revenue Model

Company Description

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources. Its distribution system comprises 208 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,428 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 82,474 miles of electric distribution overhead lines; 9,395 miles of underground distribution lines; 1,093 substations; and 3 battery facilities. The Gas Utility segment engages in the purchase, transmission, storage, distribution, and sale of natural gas, which includes 2,392 miles of transmission lines; 15 gas storage fields; 28,065 miles of distribution mains; and 8 compressor stations. The Enterprises segment is involved in the independent power production and marketing, including the development and operation of renewable generation. It serves 1.9 million electric and 1.8 million gas customers, including residential, commercial, and diversified industrial customers. The company was incorporated in 1987 and is headquartered in Jackson, Michigan.

How the Company Makes Money

CMS Energy generates revenue primarily through its regulated utility business, Consumers Energy, which earns money by providing electricity and natural gas services. This revenue is derived from customer bills, which are regulated by state authorities to ensure fair pricing and service reliability. The company also benefits from long-term contracts and partnerships in its non-regulated segment, CMS Enterprises, which involve renewable energy projects and energy marketing. Additionally, CMS Energy invests in infrastructure improvements and renewable energy initiatives, which can further enhance its revenue through incentives and subsidies. The company’s financial performance is bolstered by its focus on operational efficiency and customer service, ensuring a stable and growing customer base.

CMS Energy Financial Statement Overview

Summary

Income statement strength (72) reflects stable-to-improving revenue and solid regulated-utility profitability, but this is offset by elevated and rising leverage on the balance sheet (58) and weak/volatile free cash flow (46) tied to heavy capex, with additional confidence reduced by missing/zero 2025 margin and leverage fields plus a 2025 free-cash-flow consistency red flag.

Income Statement

Revenue has been broadly stable with a return to growth in 2024 (~+0.7%) and a stronger step-up in 2025 (~+2.9%) after a 2023 decline. Profitability is solid for a regulated utility, with net margin generally in the low-to-mid teens (about 11.9% in 2023, 13.3% in 2024, and 12.5% in 2025). EBITDA margin improved meaningfully versus 2022 and remains healthy. Key weakness: several 2025 margin fields (gross and EBIT margins) appear missing/zero in the data, limiting confidence in trend analysis for those line items.

Balance Sheet

Leverage is elevated and rising: total debt increased from ~$12.4B (2020) to ~$19.0B (2025). Where available, debt relative to equity runs around ~1.9–2.3x (2020–2024), which is high but not unusual for regulated utilities. Equity has grown steadily (from ~$5.5B in 2020 to ~$8.9B in 2025), helping support asset growth, and returns on equity were steady around ~12% in 2022–2024 (with 2021 higher). Main concern is the continued debt build and missing/zero leverage and return fields in 2025, which reduces visibility into current balance-sheet quality.

Cash Flow

Operating cash flow is generally strong and improving (from ~$1.28B in 2020 to ~$2.31B–$2.37B in 2023–2024 and ~$2.24B in 2025). However, free cash flow has been persistently negative in most years (2020–2024), consistent with heavy capital spending needs; free cash flow was notably weak in 2022–2024 (about -$1.52B, -$0.91B, and -$0.65B). 2025 shows positive free cash flow (~$2.24B) and a 1.0x conversion of free cash flow to net income, but the reported free cash flow growth is sharply negative (-248%), creating a data consistency red flag and suggesting volatility or classification changes.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.54B	7.51B	7.46B	8.60B	7.33B
Gross Profit	5.20B	3.21B	2.86B	2.76B	2.65B
EBITDA	3.19B	3.07B	2.78B	2.55B	2.44B
Net Income	1.07B	1.00B	887.00M	837.00M	1.35B
Balance Sheet
Total Assets	40.39B	35.92B	33.52B	31.35B	28.75B
Cash, Cash Equivalents and Short-Term Investments	615.00M	103.00M	227.00M	164.00M	452.00M
Total Debt	18.94B	16.59B	15.67B	14.34B	12.50B
Total Liabilities	30.68B	27.17B	25.39B	23.76B	21.57B
Stockholders Equity	9.14B	8.23B	7.54B	7.01B	6.63B
Cash Flow
Free Cash Flow	-1.59B	-648.00M	-910.00M	-1.52B	-257.00M
Operating Cash Flow	2.23B	2.37B	2.31B	855.00M	1.82B
Investing Cash Flow	-4.03B	-3.05B	-3.38B	-2.47B	-1.23B
Financing Cash Flow	2.24B	609.00M	1.14B	1.32B	-296.00M

CMS Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMS, the sentiment is Positive. The current price of 78.07 is above the 20-day moving average (MA) of 74.27, above the 50-day MA of 71.70, and above the 200-day MA of 70.98, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 76.27 is Negative, neither overbought nor oversold. The STOCH value of 85.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMS.

CMS Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIX	70 Outperform	$28.76B	6.47	27.88%	5.68%	4.43%	123.35%
AEE	68 Neutral	$31.31B	21.18	11.41%	2.86%	22.71%	22.86%
CMS	66 Neutral	$23.92B	22.15	12.33%	3.10%	10.96%	-0.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$29.57B	28.99	8.17%	3.94%	7.64%	48.61%
ES	63 Neutral	$28.62B	16.70	10.84%	4.54%	13.12%	―
DTE	62 Neutral	$30.80B	21.03	12.16%	3.45%	19.42%	-9.68%

CMS Energy Corporate Events

CMS Energy Adds Experienced Leaders to Expanded Board

CMS Energy (NYSE: CMS) is a Michigan-based energy company whose primary business is Consumers Energy, a regulated electric and natural gas utility serving the state. The company also owns and operates independent power generation businesses, positioning it as a diversified player in the regional utility and power markets.

CMS Energy and Consumers Energy expanded their boards from nine to eleven members and, effective February 20, 2026, elected former Dominion Energy executive Diane Leopold and Meijer chief executive Richard Keyes as directors. Leopold, bringing more than three decades of utility experience, will serve on the Compensation and Human Resources and Finance committees, while Keyes, with over 35 years of operational and strategic leadership in retail, will sit on the Audit and Governance, Sustainability and Public Responsibility committees and receive pro-rated director compensation including restricted stock grants.

The most recent analyst rating on (CMS) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on CMS Energy stock, see the CMS Stock Forecast page.

CMS Energy Updates $1 Billion At-the-Market Equity Program

On February 11, 2026, CMS Energy filed an updated prospectus supplement with the SEC to continue its existing at-the-market equity offering program for up to $1 billion of common stock, under which about $507.7 million has already been sold and roughly $492.3 million remains available. The remaining shares may be issued over time through various sales methods, including forward sale transactions with several major banks, providing CMS Energy with flexible access to equity capital while potentially diluting existing shareholders depending on the scale and timing of future issuances.

The program, conducted under an equity distribution agreement originally dated December 7, 2023, allows CMS Energy to adjust issuance based on market conditions, stock price and funding needs, and the company may suspend or terminate the arrangement at any time. Forward sale structures mean CMS Energy will typically receive cash only upon physical settlement of those contracts, which could influence the timing of capital inflows and balance-sheet impacts, while the intermediaries involved earn compensation under the agreement.

The most recent analyst rating on (CMS) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on CMS Energy stock, see the CMS Stock Forecast page.

CMS Energy boosts 2026 guidance and raises dividend

On February 5, 2026, CMS Energy reported 2025 diluted earnings per share of $3.53, up from $3.33 in 2024, with adjusted EPS rising to $3.61 from $3.34 and exceeding guidance, driven largely by strong performance at its NorthStar Clean Energy segment and solid cost control at the utility. The company raised its 2026 adjusted earnings guidance to a range of $3.83 to $3.90 per share, increased its annual dividend for 2026 by $0.11 to $2.28—marking its 20th consecutive yearly increase—and highlighted constructive regulatory outcomes and a focus on reliability and affordability, signaling ongoing earnings growth and continued support for shareholders and customers.

The most recent analyst rating on (CMS) stock is a Hold with a $79.00 price target. To see the full list of analyst forecasts on CMS Energy stock, see the CMS Stock Forecast page.

CMS Energy Expands Credit Facilities for Growth

On November 21, 2025, CMS Energy Corporation and Consumers Energy Company amended and expanded their revolving credit facilities with a consortium of banks, increasing CMS’s facility to $750 million and Consumers’ to $1.1 billion. These facilities, which have five-year terms expiring in 2030, are intended for general corporate purposes and working capital, and replace existing facilities set to expire in 2027. Additionally, Consumers entered a new $300 million secured revolving credit facility with similar terms, expiring in 2028. These financial arrangements are expected to enhance the companies’ operational flexibility and financial stability.

The most recent analyst rating on (CMS) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on CMS Energy stock, see the CMS Stock Forecast page.