Cms Energy (CMS)
NYSE:CMS
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CMS Energy
(NYSE:CMS)
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Rating:66Neutral
Price Target:
$82.00
▲(6.20% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
CMS Energy (CMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.66B
Dividend Yield3.1%
Average Volume (3M)2.89M
Price to Earnings (P/E)19.6
Beta (1Y)>-0.01
Revenue Growth10.96%
EPS Growth-0.77%
CountryUS
Employees8,324
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.95
Shares Outstanding306,420,900
10 Day Avg. Volume2,557,454
30 Day Avg. Volume2,889,981
Financial Highlights & Ratios
PEG Ratio3.45
Price to Book (P/B)2.30
Price to Sales (P/S)2.46
P/FCF Ratio-13.23
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue4.93
Enterprise Value/Gross Profit8.09
Enterprise Value/Ebitda13.20
Forecast
1Y Price Target
$81.18Price Target Upside5.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)3.88
Revenue Forecast (FY)$8.64B
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, transmis...
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 authori...
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 Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call emphasized numerous constructive regulatory approvals, strong operational execution, and clear growth initiatives (renewables plan, $24B five-year investments, data center tariff and pipeline, solid 2025 EPS performance and raised 2026 guidance). Key risks discussed include a recent adverse ALJ preliminary rate decision (low ROE), elevated equity and refinancing needs that dilute headline growth, and weather/municipal zoning timing risks. On balance, highlights substantially outweigh the lowlights, driven by confirmed investment opportunities, strong cost-saving programs, maintained credit profile, and management confidence in constructive final regulatory outcomes.Positive Updates
Record Adjusted EPS and Growth
2025 adjusted EPS of $3.61, up over 8% versus 2024; 2026 guidance raised to $3.83–$3.90 (a $0.03 increase on both ends) implying 6%–8% growth and management guiding toward the high end.
Negative Updates
Adverse ALJ Preliminary Rate Case Recommendation
Administrative Law Judge proposed an ROE materially below management expectations (cited ~8.2%), creating regulatory uncertainty; management considers the ALJ outcome an outlier and expects a final ROE of 9.9% or better.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Adjusted EPS and Growth
2025 adjusted EPS of $3.61, up over 8% versus 2024; 2026 guidance raised to $3.83–$3.90 (a $0.03 increase on both ends) implying 6%–8% growth and management guiding toward the high end.
Read all positive updates
Company Guidance
CMS reported 2025 adjusted EPS of $3.61 (up >8% vs. 2024) and raised 2026 adjusted EPS guidance to $3.83–$3.90, implying 6%–8% growth off 2025 with confidence toward the high end; management expects the 2026 guide to be driven by utility adjusted earnings of roughly $4.28–$4.33 and a NorthStar contribution of $0.25–$0.30, with a weather normalizing headwind of ~$0.22, rate relief pickup of ~$0.37, productivity/storm normalization benefit of ~$0.12 and other net items of –$0.05 to +$0.02. Capital and funding metrics include a five‑year $24 billion utility customer investment plan (up $4 billion), ~$14 billion of customer investment opportunity from the approved 20‑year renewable plan over the next decade, 10.5% rate base growth through 2030, planned 2026 utility issuances of a little over $1.7 billion, parent equity issuance of ≈$700 million in 2026 (ATM) and average equity needs of ≈$750 million/year (historical $0.40 equity per $1 incremental CapEx), plus >$1 billion of junior subs over the plan and parent refinancings of roughly $1.7 billion. Other notable metrics embedded in the guidance: near‑term load growth ~3% (weather‑normalized) with 2–3% run‑rate thereafter, nearly $50 million of FCM incentives by decade‑end, ~ $65 million/year of energy efficiency incentives, CE Way savings >$100 million in 2025, energy‑waste reduction savings ≈$1.2 billion for customers in 2025, targeted dividend payout ≈60% in 2026 (~55% over the five‑year plan), and the company expects to maintain solid investment‑grade credit metrics.CMS Energy Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| 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
Positive
77.21
Price Trends
74.74
Positive
72.95
Positive
71.85
Positive
Market Momentum
0.27
Positive
56.99
Neutral
54.18
Neutral
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 77.21 is above the 20-day moving average (MA) of 76.77, above the 50-day MA of 74.74, and above the 200-day MA of 71.85, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 54.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $27.64B | 5.07 | 27.18% | 5.68% | 4.43% | 123.35% | |
67 Neutral | $30.32B | 18.55 | 11.48% | 2.86% | 22.71% | 22.86% | |
66 Neutral | $23.66B | 19.63 | 12.33% | 3.10% | 10.96% | -0.77% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $29.14B | 25.33 | 8.04% | 3.94% | 7.64% | 48.61% | |
61 Neutral | $30.35B | 18.26 | 12.16% | 3.45% | 19.42% | -9.68% | |
56 Neutral | $25.69B | 14.75 | 10.71% | 4.54% | 13.12% | ― |
* Utilities Sector Average
CMS
CMS Energy
77.58
4.65
6.37%
AEE
Ameren
109.92
12.08
12.35%
DTE
DTE Energy
146.22
12.77
9.57%
EIX
Edison International
73.18
17.90
32.39%
FE
FirstEnergy
50.66
11.84
30.51%
ES
Eversource Energy
69.28
9.94
16.75%
CMS Energy Corporate Events
Executive/Board Changes
CMS Energy Adds Experienced Leaders to Expanded Board
Positive
Feb 20, 2026
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, posit...
Private Placements and FinancingRegulatory Filings and Compliance
CMS Energy Updates $1 Billion At-the-Market Equity Program
Neutral
Feb 11, 2026
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 ro...
Business Operations and StrategyDividendsFinancial Disclosures
CMS Energy boosts 2026 guidance and raises dividend
Positive
Feb 5, 2026
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 segme...
Business Operations and StrategyPrivate Placements and Financing
CMS Energy Expands Credit Facilities for Growth
Positive
Nov 21, 2025
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. Thes...
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.