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CMS Energy
(NYSE:CMS)
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Rating:62Neutral
Price Target:
$79.00
â–²(5.76% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by mixed financial performance: stable utility earnings and a sector-typical balance sheet are offset by materially weak free cash flow and funding dependence. The latest earnings call was a notable positive with reaffirmed/expanded guidance and a clearer utility-focused strategy, but valuation (22.0x P/E) is only moderately supported by the ~3.0% dividend yield, and technicals indicate limited near-term momentum.
Positive Factors
Rate-base growth (utility capex)
A $24B regulated utility investment plan that targets 10.5% compounded rate-base growth supports durable, rate‑based earnings. Regulated returns on invested capital provide predictable long‑term cash flows and revenue recovery through rate cases, underpinning multi‑year growth in utility income.
Negative Factors
Deepening negative free cash flow
Persistently large and worsening negative free cash flow means internal cash generation does not cover capex, increasing reliance on external financing. Over multiple years this can raise financing costs, constrain self‑funding of rate‑base growth, and heighten dilution or leverage risk if capital needs remain elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
Rate-base growth (utility capex)
A $24B regulated utility investment plan that targets 10.5% compounded rate-base growth supports durable, rate‑based earnings. Regulated returns on invested capital provide predictable long‑term cash flows and revenue recovery through rate cases, underpinning multi‑year growth in utility income.
Read all positive factors
CMS Energy Key Performance Indicators (KPIs)
Any
Total Electric Deliveries
Tracks the amount of electricity delivered to customers, reflecting demand trends and the company's capacity to supply power reliably. This is crucial for understanding growth potential and service reliability.
Tracks the amount of electricity delivered to customers, reflecting demand trends and the company's capacity to supply power reliably. This is crucial for understanding growth potential and service reliability.
Data provided by:
The Fly
The FlyCMS Energy (CMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.96B
Dividend Yield3.19%
Average Volume (3M)3.27M
Price to Earnings (P/E)20.9
Beta (1Y)-0.03
Revenue Growth9.93%
EPS Growth-1.74%
CountryUS
Employees8,350
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)3.38
Shares Outstanding313,577,150
10 Day Avg. Volume3,587,534
30 Day Avg. Volume3,273,984
Financial Highlights & Ratios
PEG Ratio3.48
Price to Book (P/B)2.30
Price to Sales (P/S)2.46
P/FCF Ratio-13.23
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$80.91Price Target Upside8.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)3.87
Revenue Forecast (FY)$9.00B
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 NorthStar Clean Energy. The Electric Utility segment is involved in the generation, purchas...
How the Company Makes Money
CMS Energy makes money primarily through regulated utility operations, where revenues are largely determined by state regulation rather than market pricing. The main revenue streams are: (1) Electric utility revenues: Consumers Energy sells electr...
CMS Energy Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presents several meaningful strategic positives: reaffirmed 2026 guidance and introduced 2027 guidance, a clear simplification to a utility-focused model, a large $24B utility capital plan with 10.5% rate base growth, improved parent financing and tangible cash-flow retention from Michigan assets. Near-term challenges include storm-related costs, weather variability, remaining equity financing needs (~$3.0B) and timing/ execution risk around NorthStar asset sales and local zoning for data center projects. On balance, the strategic actions and strong utility fundamentals are presented as outweighing near-term operational and execution risks.Positive Updates
Reaffirmed 2026 Guidance and New 2027 Guidance
Reported adjusted EPS of $1.50 for H1 2026 (adjusted net income $464M). Reaffirmed full-year 2026 guidance of $3.83–$3.90 per share with confidence toward the high end and introduced 2027 guidance of $4.08–$4.17, maintaining long-term adjusted EPS growth guidance of 6%–8%.
Negative Updates
Storm-Related Costs and Operational Headwinds
Storm activity was the primary headwind in H1, driving an unfavorable O&M variance of $0.19 per share year-to-date. Company has a pending storm deferral docket and is assuming a constructive outcome to offset costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Reaffirmed 2026 Guidance and New 2027 Guidance
Reported adjusted EPS of $1.50 for H1 2026 (adjusted net income $464M). Reaffirmed full-year 2026 guidance of $3.83–$3.90 per share with confidence toward the high end and introduced 2027 guidance of $4.08–$4.17, maintaining long-term adjusted EPS growth guidance of 6%–8%.
Read all positive updates
Company Guidance
CMS Energy reaffirmed full‑year 2026 adjusted EPS guidance of $3.83–$3.90 (H1 adjusted EPS $1.50 / adjusted net income $464M) with confidence toward the high end, introduced 2027 guidance of $4.08–$4.17 and reiterated long‑term adjusted EPS growth of 6%–8% (toward the high end) paired with an approximately 3% dividend yield; the company expects nearly 100% of post‑2027 earnings to be utility rate‑based after repositioning NorthStar, which frees ~$1.7B of planned 5‑year nonutility renewables capital and is expected to reduce parent funding needs by over $500M through 2030 (including at least $350M less equity versus a prior $3.75B new‑equity 5‑year assumption — $700M planned for 2026, nearly $500M already issued); the $24B utility investment plan drives 10.5% compounded rate‑base growth with $2B REP renewables and $1B distribution reliability upside, rate filings request a $456M electric revenue increase (10.25% ROE, 51.75% equity ratio) and a revised $232M gas request (51.75% equity), and near‑term financial bridges include H2 drivers of +$0.22 from rates net of investments, +$0.25 from O&M normalization/storm deferral, a to‑go benefit of ~$0.16–$0.23, plus operational assumptions of 2%–3% sales growth and up to 2% electric energy‑efficiency savings (and an illustrative ~$7.50/month residential bill benefit per GW of new large load).CMS Energy Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
61
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.81B | 8.54B | 7.51B | 7.46B | 8.60B | 7.33B |
| Gross Profit | 6.14B | 5.20B | 3.21B | 2.86B | 2.76B | 2.65B |
| EBITDA | 3.12B | 3.19B | 3.07B | 2.78B | 2.55B | 2.44B |
| Net Income | 1.03B | 1.07B | 1.00B | 887.00M | 837.00M | 1.35B |
Balance Sheet | ||||||
| Total Assets | 41.10B | 40.39B | 35.92B | 33.52B | 31.35B | 28.75B |
| Cash, Cash Equivalents and Short-Term Investments | 241.00M | 615.00M | 103.00M | 227.00M | 164.00M | 452.00M |
| Total Debt | 19.30B | 18.94B | 16.59B | 15.67B | 14.34B | 12.50B |
| Total Liabilities | 30.71B | 30.68B | 27.17B | 25.39B | 23.76B | 21.57B |
| Stockholders Equity | 9.77B | 9.14B | 8.23B | 7.54B | 7.01B | 6.63B |
Cash Flow | ||||||
| Free Cash Flow | -1.91B | -1.59B | -648.00M | -910.00M | -1.52B | -257.00M |
| Operating Cash Flow | 2.15B | 2.23B | 2.37B | 2.31B | 855.00M | 1.82B |
| Investing Cash Flow | -4.25B | -4.03B | -3.05B | -3.38B | -2.47B | -1.23B |
| Financing Cash Flow | 1.52B | 2.24B | 609.00M | 1.14B | 1.32B | -296.00M |
CMS Energy Technical Analysis
Negative
74.70
Price Trends
73.16
Negative
73.82
Negative
72.70
Negative
Market Momentum
-1.07
Positive
40.71
Neutral
31.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMS, the sentiment is Negative. The current price of 74.7 is above the 20-day moving average (MA) of 71.84, above the 50-day MA of 73.16, and above the 200-day MA of 72.70, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 40.71 is Neutral, neither overbought nor oversold. The STOCH value of 31.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMS.
CMS Energy Risk Analysis
CMS Energy disclosed 31 risk factors in its most recent earnings report. CMS Energy reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CMS Energy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $26.71B | 7.26 | 22.06% | 4.34% | 10.74% | 42.37% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $21.96B | 20.86 | 11.02% | 2.98% | 9.93% | -1.74% | |
62 Neutral | $27.20B | 24.98 | 8.53% | 3.61% | 12.63% | -17.19% | |
62 Neutral | $26.95B | 18.71 | 8.91% | 4.11% | 7.75% | 66.25% | |
60 Neutral | $30.13B | 19.04 | 11.70% | 2.57% | 3.76% | 25.15% | |
60 Neutral | $28.86B | 21.90 | 10.78% | 3.07% | 17.53% | -8.86% |
* Utilities Sector Average
CMS
CMS Energy
70.51
0.12
0.17%
AEE
Ameren
109.12
10.50
10.65%
DTE
DTE Energy
139.53
4.11
3.04%
EIX
Edison International
70.68
17.59
33.12%
FE
FirstEnergy
46.84
4.87
11.60%
ES
Eversource Energy
72.22
9.58
15.29%
CMS Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
CMS Energy Q2 Earnings Decline, Reaffirms EPS Guidance
Negative
Jul 28, 2026
On July 28, 2026, CMS Energy reported second-quarter 2026 diluted earnings per share of $0.37, down from $0.66 a year earlier, with adjusted EPS also at $0.37 versus $0.71 in 2025, and year-to-date adjusted EPS of $1.50 compared with $1.73. Operat...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
CMS Energy names new CFO, affirms financial guidance
Positive
Jun 3, 2026
On June 3, 2026, CMS Energy announced the retirement of executive vice president and chief financial officer Rejji P. Hayes and the appointment of longtime company executive Srikanth (Sri) Maddipati as his successor, with immediate effect. Maddipa...
Private Placements and FinancingRegulatory Filings and Compliance
CMS Energy Launches Flexible $3 Billion Equity Offering Program
Neutral
May 13, 2026
CMS Energy Corporation has launched an equity offering program allowing it to issue and sell up to $3 billion of its common stock over time, according to a prospectus supplement filed with the SEC dated May 13, 2026. The shares may be sold at CMS ...
Business Operations and StrategyShareholder Meetings
CMS Energy Shareholders Approve Governance Changes and Proposals
Positive
May 13, 2026
At their 2026 annual meetings of shareholders held on May 8, 2026 for CMS Energy and concurrently for Consumers Energy, investors approved all management proposals, including the election of all director nominees, advisory votes backing executive ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.