CMS Energy (CMS) AI Stock Analysis

• Market Cap: $22.20B
• Dividend Yield: 3%
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 21.1
• 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): 0.93
• Shares Outstanding: 304,319,760
• 10 Day Avg. Volume: 3,350,918
• 30 Day Avg. Volume: 2,660,960
• PEG Ratio: 1.80
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 2.64
• P/FCF Ratio: -30.61
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 4.88
• Enterprise Value/Gross Profit: 12.55
• Enterprise Value/Ebitda: 12.13
• 1Y Price Target: $80.78
• Price Target Upside: 11.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 3.59
• Revenue Forecast (FY): $8.14B

• Rating: 72 Outperform
• Price Target: $82.00 ▲(13.34% Upside)

CMS Energy's overall stock score is driven by strong earnings call results and a reasonable valuation. Financial performance shows moderate health with some profitability concerns, while technical analysis indicates mild bullish momentum. The company's positive regulatory outcomes and growth outlook further support the score.

Positive Factors

Regulatory Approvals

The approval for significant renewable energy projects enhances CMS Energy's competitive positioning in sustainable energy, aligning with long-term industry trends and regulatory requirements.

Revenue Growth

Consistent revenue growth reflects strong demand for CMS Energy's services, supporting long-term financial stability and market presence.

Operational Expansion

The expansion in industrial connections and contracts indicates robust demand and supports future revenue streams, contributing to sustained growth.

Negative Factors

Profitability Margins

Decreasing profitability margins suggest challenges in cost management, which could impact long-term financial health if not addressed.

Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting CMS Energy's ability to invest in growth opportunities without additional financing.

Increased Costs

Rising operational costs can pressure margins and profitability, necessitating improved cost control measures to maintain financial performance.

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 the sale of electricity and natural gas to residential, commercial, and industrial customers within its service territories. The company's revenue model is supported by regulated rates set by the Michigan Public Service Commission, which allows it to recover costs and earn a regulated return on its investments in infrastructure. Key revenue streams include residential and commercial electricity sales, natural gas distribution, and ancillary services such as energy efficiency programs. Additionally, CMS Enterprises contributes to revenue through investments in power generation projects and partnerships that enhance its portfolio in renewable energy. Factors such as regulatory approvals, energy demand, and operational efficiencies also play significant roles in driving the company's earnings.

CMS Energy Financial Statement Overview

Summary

CMS Energy demonstrates moderate financial health with positive revenue growth and improved leverage. However, profitability margins have decreased, and free cash flow remains a concern. The company shows potential for stability with better cost management and cash flow improvements.

Income Statement

CMS Energy shows a solid revenue growth rate of 3.47% in the TTM, indicating a positive trend. The gross profit margin has decreased from 42.70% in 2024 to 31.77% in TTM, suggesting some pressure on cost management. Net profit margin is stable at 12.62% in TTM, slightly down from 13.35% in 2024. EBIT and EBITDA margins have also decreased, reflecting potential operational challenges. Overall, the income statement reflects moderate growth with some profitability concerns.

Balance Sheet

The debt-to-equity ratio has improved to 0.99 in TTM from 2.02 in 2024, indicating better leverage management. Return on equity is slightly lower at 11.24% in TTM compared to 12.19% in 2024, showing stable profitability. The equity ratio has improved, suggesting a stronger equity base. Overall, the balance sheet shows improved leverage but stable profitability.

Cash Flow

Operating cash flow has increased, with a coverage ratio of 1.11 in TTM, indicating good cash generation relative to net income. However, free cash flow remains negative, although it has improved from previous periods. The free cash flow to net income ratio is negative, highlighting ongoing cash flow challenges. Overall, cash flow shows improvement in operating cash but persistent free cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.29B	7.51B	7.46B	8.60B	7.33B	6.42B
Gross Profit	3.22B	3.21B	2.86B	2.76B	2.65B	2.63B
EBITDA	3.33B	3.07B	2.78B	2.55B	2.44B	2.36B
Net Income	1.05B	1.00B	887.00M	837.00M	1.35B	755.00M
Balance Sheet
Total Assets	38.01B	35.92B	33.52B	31.35B	28.75B	29.67B
Cash, Cash Equivalents and Short-Term Investments	432.00M	103.00M	227.00M	164.00M	452.00M	32.00M
Total Debt	18.07B	16.59B	15.67B	14.34B	12.50B	12.42B
Total Liabilities	28.58B	27.17B	25.39B	23.76B	21.57B	23.59B
Stockholders Equity	8.86B	8.23B	7.54B	7.01B	6.63B	5.50B
Cash Flow
Free Cash Flow	-1.51B	-648.00M	-910.00M	-1.52B	-257.00M	-1.03B
Operating Cash Flow	2.16B	2.37B	2.31B	855.00M	1.82B	1.28B
Investing Cash Flow	-3.87B	-3.05B	-3.38B	-2.47B	-1.23B	-2.84B
Financing Cash Flow	1.68B	609.00M	1.14B	1.32B	-296.00M	1.59B

CMS Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.35
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 72.35 is below the 20-day moving average (MA) of 73.92, below the 50-day MA of 72.55, and above the 200-day MA of 71.06, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.80 is Neutral, neither overbought nor oversold. The STOCH value of 31.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMS.

CMS Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIX	76 Outperform	$21.85B	7.43	19.13%	5.85%	4.43%	123.35%
CMS	72 Outperform	$22.20B	21.06	12.34%	3.00%	10.96%	-0.77%
AEE	72 Outperform	$27.56B	22.38	11.47%	2.74%	22.71%	22.86%
FE	72 Outperform	$26.39B	19.85	10.54%	3.84%	7.64%	48.61%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ES	65 Neutral	$27.40B	20.28	―	4.15%	13.12%	―
DTE	65 Neutral	$27.71B	19.99	11.64%	3.25%	19.42%	-9.68%

CMS Energy Corporate Events

CMS Energy’s Positive Earnings Call Highlights Growth

CMS Energy’s recent earnings call conveyed a positive sentiment, underscored by strong regulatory outcomes, economic growth, and robust financial performance. Despite noting increased costs and some negative variances, the overall outlook remains optimistic, with expectations of continued growth and financial stability.

CMS Energy Reports Strong Q3 Results and Raises Guidance

CMS Energy, a Michigan-based energy company, primarily operates through its Consumers Energy segment, providing electricity and natural gas services. The company also engages in independent power generation activities.

CMS Energy Reports Strong Q3 2025 Earnings Growth

On October 30, 2025, CMS Energy announced strong third-quarter results, reporting earnings per share of $0.92, up from $0.84 in 2024, and adjusted earnings per share of $0.93, compared to $0.84 in the previous year. The company raised its 2025 adjusted earnings guidance and initiated 2026 guidance, reflecting confidence in its long-term growth strategy. CMS Energy’s performance was bolstered by favorable regulatory outcomes and weather conditions, positioning it well to meet its operational and financial goals.

The most recent analyst rating on (CMS) stock is a Hold with a $77.00 price target. To see the full list of analyst forecasts on CMS Energy stock, see the CMS Stock Forecast page.