CMS Energy (CMS) AI Stock Analysis

• Market Cap: $21.27B
• Dividend Yield: 3.1%
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): 20.2
• 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: 2,006,340
• 30 Day Avg. Volume: 2,392,015
• 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: 1.90
• Enterprise Value/Revenue: 4.88
• Enterprise Value/Gross Profit: 12.55
• Enterprise Value/Ebitda: 12.14
• 1Y Price Target: $79.40
• Price Target Upside: 13.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 3.59
• Revenue Forecast (FY): $8.19B

• Rating: 67 Neutral
• Price Target: $77.00 ▲(10.14% Upside)

CMS Energy's overall stock score reflects moderate financial health with positive revenue growth and improved leverage, but declining profitability margins and free cash flow concerns. Technical analysis indicates bearish momentum, while valuation is fair with a stable dividend yield. The positive earnings call and corporate events bolster the outlook, highlighting strong regulatory outcomes and financial flexibility.

Positive Factors

Regulatory Approvals

Securing regulatory approvals for significant renewable energy projects enhances CMS Energy's long-term growth prospects and aligns with clean energy trends.

Financial Flexibility

Expanded credit facilities improve financial flexibility, supporting operational growth and stability, and enabling strategic investments.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, contributing to long-term financial health.

Negative Factors

Profitability Margins

Declining profitability margins suggest challenges in cost management, potentially affecting long-term earnings and operational efficiency.

Free Cash Flow Concerns

Persistent negative free cash flow indicates ongoing cash management challenges, which could limit future investment and growth opportunities.

Increased Costs

Rising operational costs can pressure margins and reduce profitability, impacting financial performance and strategic flexibility over time.

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

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	362.00M	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: 69.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 69.91 is below the 20-day moving average (MA) of 72.33, below the 50-day MA of 73.04, and below the 200-day MA of 71.27, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 35.75 is Neutral, neither overbought nor oversold. The STOCH value of 23.26 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	75 Outperform	$22.44B	7.64	19.13%	5.68%	4.43%	123.35%
AEE	68 Neutral	$26.51B	18.85	11.47%	2.90%	22.71%	22.86%
CMS	67 Neutral	$21.27B	20.18	12.34%	3.10%	10.96%	-0.77%
FE	67 Neutral	$25.43B	19.13	10.54%	4.00%	7.64%	48.61%
ES	66 Neutral	$25.47B	18.66	8.65%	4.45%	13.12%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
DTE	65 Neutral	$26.72B	19.27	11.64%	3.42%	19.42%	-9.68%

CMS Energy Corporate Events

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.

CMS Energy Completes $1 Billion Convertible Notes Sale

On November 6, 2025, CMS Energy completed the sale of $1 billion in Convertible Senior Notes due 2031, including an additional $150 million from an option exercised by initial purchasers. These notes, sold in a private offering to qualified institutional buyers, bear a fixed interest rate of 3.125% and are convertible into cash or CMS Energy common stock. This financial move is expected to enhance CMS Energy’s capital structure, providing flexibility in managing its debt obligations and potentially impacting its market positioning by offering a premium conversion price over its common stock’s last reported sale price.

CMS Energy Upsizes $850M Convertible Notes Offering

On November 4, 2025, CMS Energy announced the pricing and upsize of a private placement of $850 million in 3.125% Convertible Senior Notes due 2031. The proceeds will be used to retire existing senior notes and for general corporate purposes, impacting the company’s financial strategy and potentially its market positioning.

CMS Energy Announces $750M Convertible Notes Offering

On November 3, 2025, CMS Energy announced a private placement offering of $750 million in convertible senior notes due 2031, with an option for initial purchasers to buy an additional $112.5 million. The proceeds will be used to retire existing senior notes and for general corporate purposes. This move is expected to impact the company’s financial strategy by addressing upcoming debt maturities and providing additional capital for operations.

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.