CMS
CMS Energy
$75.33
▲ 2.1%Updated Today 5:06 AM ET
▲ Up 6.7% over the last 12 months
Market Cap
$23.27B
P/E
21.02x
Forward P/E (est.)
19.69x
ROE
12.3%
Revenue Growth
12.7%
EPS Growth
6.8%
Profit Margin
13.2%
FCF Yield
8.4%
Debt / Equity
2.07x
ROIC
8.0%
Interest Coverage
2.69x
Current Ratio
0.84x
Dividend Yield
3.1%
Implied Growth (rev. DCF)
—
Rating Score
54/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what CMS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. CMS trades near $75.33, above its 50-day average ($74.17) and 200-day average ($73.62). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 65 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. CMS's is $1.56 (~2.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month CMS found buyers near $68.84 (support) and sellers near $75.43 (resistance); its 52-week range is $68.41–$80.36. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.0× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
CMS Energy (CMS) is a large-cap company in the Multi-Utilities industry, part of the Utilities sector of the S&P 500, with a market value around $23.27B.
In its latest reported year it generated about $8.30B in revenue and $1.07B in net profit.
Our model rates CMS Neutral (54/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
4.1%
Revenue moved from $7.08B in 2021 to $8.30B in 2025, a 4.1% compound annual growth rate. The most recent year grew a steady 12.7% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
31.9%
Operating Margin
20.8%
Net Margin
12.9%
ROE
12.3%
CMS Energy keeps about 13.2% of each sales dollar as net profit, with a 31.9% gross margin and 20.8% operating margin. Return on equity is 12.3% and return on invested capital about 8.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$7.95B
Net Debt
$7.78B
Net Debt / EBITDA
4.5x
Debt / Equity
2.07x
Leverage: debt-to-equity is 2.1x, and operating profit covers interest about 2.7x, with a current ratio of 0.8x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $7.95B of total debt against $175.00M of cash.
Operating CF
$2.23B
Free Cash Flow
$2.23B
FCF Margin
26.9%
In the latest year CMS Energy produced about $2.23B of operating cash flow and $2.23B of free cash flow after capital spending. That is a free-cash-flow yield of about 8.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
21.02x
P/S
2.81x
P/B
2.37x
EV / EBITDA
10.1x
CMS trades at 21.0x trailing earnings (about 19.7x on estimated forward earnings), 2.8x sales, and 2.4x book value. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How CMS stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.
In the Utilities sector (31 S&P 500 companies), CMS ranks #16 of 31 by our overall rating. It trades at roughly in line versus the sector on earnings (21x P/E vs. 22.2x median) with a higher return on equity (12.3% vs. 10.4%) and faster revenue growth (12.7% vs. 9.0%).
P/E vs sector
21x
median 22.2x
ROE vs sector
12.3%
median 10.4%
Growth vs sector
12.7%
median 9.0%
Sector rank
#16
of 31 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Utilities companies by sub-industry and size. Sector median is across all 31 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$83.71 – $135.22
vs. $75.33 today · expected CAGR 2% – 12%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $9.38B | $10.60B | $11.98B | $13.54B | $15.30B |
| Net income | $1.22B | $1.38B | $1.56B | $1.76B | $1.99B |
| EPS | $3.95 | $4.46 | $5.04 | $5.70 | $6.44 |
| Share price (low) | $51.34 | $58.01 | $65.56 | $74.08 | $83.71 |
| Share price (high) | $82.93 | $93.72 | $105.90 | $119.67 | $135.22 |
| CAGR (low–high) | -32% / 10% | -12% / 12% | -5% / 12% | -0% / 12% | 2% / 12% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for CMS:
- Revenue is growing 12.7% a year, a sign of real demand.
- Healthy free-cash-flow yield (~8.4%) funds buybacks and dividends.
- Pays a 3.1% dividend on top of any price gains.
The case against CMS:
- Elevated leverage (debt/equity 2.1x) adds financial risk.
- Interest coverage is thin (2.7x), so debt costs bite.
Balance-sheet risk — debt/equity of 2.1x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: CMS Energy is a large-cap utilities business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 21.0x earnings, which our model scores Neutral (54/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
CMS — frequently asked questions
Is CMS a good stock to buy?
We don't give buy or sell advice. Our model rates CMS Energy Neutral (54/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is CMS's rating on The Stocks School?
CMS Energy currently scores 54/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does CMS's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from CMS Energy's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for CMS calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this CMS analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell CMS. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.