CMS Energy CorporationCMS
NYSE•Utilities•Utilities - Regulated Electric
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, purchase, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources. Its distribution system comprises 263 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,619 miles of high-voltage distribution overhead lines; 18 miles of high-voltage distribution underground lines; 82,854 miles of electric distribution overhead lines; 10,027 miles of underground distribution lines; and 1,102 substations. The Gas Utility segment engages in the purchase, transmission, storage, distribution, and sale of natural gas, which includes 2,337 miles of transmission lines; 14 gas storage fields; 28,433 miles of distribution mains; and 8 compressor stations. The NorthStar Clean Energy segment is involved in the independent power production and marketing, including the development and operation of renewable generation. The company 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.
as of March 2026
Are revenues and earnings expanding?
$8.58B in TTM revenue grew 13.3% YoY, reaching $2.67B last quarter. TTM EBITDA of $3.05B on operating income of $490.00M shows growth is flowing through. Net income of $1.11B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 18.3% is down 2.3% YoY — costs are rising relative to revenue. Net margin at 12.7%. ROE of 11.7% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 20.3x P/E, the stock trades in line with market averages — fairly valued. P/S of 2.6x and P/B of 2.4x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $40.28B in assets and $17.46B in long-term debt, the D/E of 1.8 reflects moderate leverage — debt is manageable but worth monitoring.
Is the business self-funding?
FCF of $-334.00M on $705.00M in operating cash flow. The FCF / Net Income ratio of -0.3x shows cash consumption — the business is not yet self-funding. Cash reserves of $175.00M provide financial flexibility. Shares outstanding rose 2.7% YoY — shareholder dilution is eroding per-share value.
Competitive analysis based on 61 quarters of fundamental data
Operating margins are positive at ~20.4% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~12.1% on average, adequate but below the threshold typically associated with wide moats.
5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~18.9% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 61 quarters
Margins are stable or improving at ~20.2% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 1.8 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.
Shares outstanding rose 2.9% — mild dilution. Compare to earnings growth to assess net per-share impact.