Cms Energy (CMS)
NYSE:CMS
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CMS Energy
(NYSE:CMS)
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Rating:58Neutral
Price Target:
$75.00
â–¼(-3.54% Downside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by steady regulated-utility earnings and reaffirmed guidance, tempered by structurally negative free cash flow and a debt-heavy funding model that requires continued external financing. Weak technical trend signals add pressure, while the ~3.1% dividend yield and moderate P/E provide partial support.
Positive Factors
Constructive regulatory outcomes / allowed ROE
Regulatory approval of a high allowed ROE and broad recovery of tariff requests provides durable earnings visibility. It underpins returns on capital investment, supports rate-base growth from the $24B plan, and reduces regulatory execution risk for multi-year investment recovery.
Negative Factors
Structurally negative free cash flow
Persistent negative FCF means operating cash doesn't fund capital needs or dividends, forcing recurring debt/equity raises to support the $24B five-year plan. This structural funding gap increases refinancing and dilution risk if credit markets tighten or financing costs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Constructive regulatory outcomes / allowed ROE
Regulatory approval of a high allowed ROE and broad recovery of tariff requests provides durable earnings visibility. It underpins returns on capital investment, supports rate-base growth from the $24B plan, and reduces regulatory execution risk for multi-year investment recovery.
Read all positive factors
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 (CMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.20B
Dividend Yield3.1%
Average Volume (3M)2.81M
Price to Earnings (P/E)19.1
Beta (1Y)-0.02
Revenue Growth13.31%
EPS Growth6.97%
CountryUS
Employees8,324
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)3.65
Shares Outstanding308,919,620
10 Day Avg. Volume2,679,146
30 Day Avg. Volume2,811,606
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 Cap1.86
Enterprise Value/Revenue4.67
Enterprise Value/Gross Profit7.23
Enterprise Value/Ebitda12.76
Forecast
1Y Price Target
$80.90Price Target Upside4.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)3.88
Revenue Forecast (FY)$8.89B
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 makes money primarily through regulated utility operations, where revenues are largely determined by state regulation rather than market pricing. The main revenue streams are: (1) Electric utility revenues: Consumers Energy sells electr...
CMS Energy Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call emphasized multiple constructive items: strong regulatory outcomes (65% of electric ask approved, 9.9% ROE), solid first-quarter results (adjusted EPS $1.13; adjusted net income $346M), reaffirmed full-year guidance ($3.83–$3.90), an expanding customer pipeline (110 MW signed YTD, 2%–3% sales growth outlook), and meaningful long-term data-center-driven growth optionality (1 GW ≈ $2B–$5B CapEx and ~2% rate reduction per GW). Offsetting these positives were near-term operational and financing headwinds: a meaningful March ice storm (-$0.05/share), a weather-driven ~$0.23/share headwind for the balance of the year, Moody’s negative outlook on the utility due to capital/recovery timing, and incremental equity/financing pressure if large-load conversions accelerate capital needs. Overall, the company appears confident in execution, growth opportunities, and guidance, but faces tangible near-term weather, credit-outlook, and financing risks that management is actively addressing.Positive Updates
Strong Regulatory Outcomes
Electric rate case: regulatory commission approved over 65% of CMS Energy's ask and maintained a 9.9% ROE for the electric business, providing constructive support for customer investments and grid resiliency.
Negative Updates
Significant Storm Costs
A sizable ice storm in March was larger than last year’s event and produced a negative variance of ~$0.05 per share in the quarter, increasing outage and restoration costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Regulatory Outcomes
Electric rate case: regulatory commission approved over 65% of CMS Energy's ask and maintained a 9.9% ROE for the electric business, providing constructive support for customer investments and grid resiliency.
Read all positive updates
Company Guidance
Management reaffirmed its 2026 and longer‑term objectives: Q1 adjusted EPS was $1.13 (adjusted net income $346M) and full‑year adjusted EPS guidance remains $3.83–$3.90 (confident toward the high end), with long‑term adjusted EPS growth targeted at 6%–8% and an approximate 3% dividend yield; the company plans to invest over $24B in its five‑year capital plan, assumes 2%–3% annual sales growth, and estimates each 1 GW of new large load could add $2B–$5B of incremental CapEx while lowering average customer rates by ~2% annually over five years. For the quarter, weather was a $0.01 per‑share tailwind, rate relief net of investments contributed +$0.11, storm costs weighed -$0.05, and other items added +$0.04; for the remaining nine months management models normal weather at -$0.23 per share, regulatory benefits of +$0.24, O&M savings of +$0.04, and an incremental +$0.06–$0.13 per share from NorthStar/other offsets net of parent financing. On funding, the company executed ~ $495M of equity forward contracts (settled ~ $142M) and plans to issue ~ $700M of equity this year, with average annual equity needs of about $750M over the 2026–2030 plan; Moody’s and Fitch reaffirmed ratings, though Moody’s placed the utility on a negative outlook.CMS Energy Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
58
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.82B | 8.54B | 7.51B | 7.46B | 8.60B | 7.33B |
| Gross Profit | 5.70B | 5.20B | 3.21B | 2.86B | 2.76B | 2.65B |
| EBITDA | 3.23B | 3.19B | 3.07B | 2.78B | 2.55B | 2.44B |
| Net Income | 1.11B | 1.07B | 1.00B | 887.00M | 837.00M | 1.35B |
Balance Sheet | ||||||
| Total Assets | 40.28B | 40.39B | 35.92B | 33.52B | 31.35B | 28.75B |
| Cash, Cash Equivalents and Short-Term Investments | 263.00M | 615.00M | 103.00M | 227.00M | 164.00M | 452.00M |
| Total Debt | 19.08B | 18.94B | 16.59B | 15.67B | 14.34B | 12.50B |
| Total Liabilities | 30.23B | 30.68B | 27.17B | 25.39B | 23.76B | 21.57B |
| Stockholders Equity | 9.47B | 9.14B | 8.23B | 7.54B | 7.01B | 6.63B |
Cash Flow | ||||||
| Free Cash Flow | -2.04B | -1.59B | -648.00M | -910.00M | -1.52B | -257.00M |
| Operating Cash Flow | 1.94B | 2.23B | 2.37B | 2.31B | 855.00M | 1.82B |
| Investing Cash Flow | -4.19B | -4.03B | -3.05B | -3.38B | -2.47B | -1.23B |
| Financing Cash Flow | 1.99B | 2.24B | 609.00M | 1.14B | 1.32B | -296.00M |
CMS Energy Technical Analysis
Negative
77.75
Price Trends
75.00
Negative
74.28
Negative
72.56
Negative
Market Momentum
-0.91
Positive
35.65
Neutral
9.85
Positive
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 77.75 is above the 20-day moving average (MA) of 72.85, above the 50-day MA of 75.00, and above the 200-day MA of 72.56, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 35.65 is Neutral, neither overbought nor oversold. The STOCH value of 9.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $29.55B | 19.27 | 11.71% | 2.86% | 12.32% | 23.95% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | $26.21B | 24.72 | 8.38% | 3.94% | 11.30% | -1.99% | |
60 Neutral | $25.77B | 14.66 | 10.86% | 4.54% | 9.83% | 101.90% | |
58 Neutral | $22.20B | 19.07 | 12.35% | 3.10% | 13.31% | 6.97% | |
58 Neutral | $29.68B | 23.21 | 10.43% | 3.45% | 22.33% | -17.75% | |
58 Neutral | $27.29B | 7.37 | 21.54% | 5.68% | 13.14% | 30.35% |
* Utilities Sector Average
CMS
CMS Energy
70.22
2.93
4.36%
AEE
Ameren
106.23
12.91
13.83%
DTE
DTE Energy
141.81
13.41
10.44%
EIX
Edison International
70.86
20.23
39.95%
FE
FirstEnergy
45.54
6.40
16.35%
ES
Eversource Energy
68.18
5.74
9.19%
CMS Energy Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
CMS Energy names new CFO, affirms financial guidance
Positive
Jun 3, 2026
On June 3, 2026, CMS Energy announced the retirement of executive vice president and chief financial officer Rejji P. Hayes and the appointment of longtime company executive Srikanth (Sri) Maddipati as his successor, with immediate effect. Maddipa...
Private Placements and FinancingRegulatory Filings and Compliance
CMS Energy Launches Flexible $3 Billion Equity Offering Program
Neutral
May 13, 2026
CMS Energy Corporation has launched an equity offering program allowing it to issue and sell up to $3 billion of its common stock over time, according to a prospectus supplement filed with the SEC dated May 13, 2026. The shares may be sold at CMS ...
Business Operations and StrategyShareholder Meetings
CMS Energy Shareholders Approve Governance Changes and Proposals
Positive
May 13, 2026
At their 2026 annual meetings of shareholders held on May 8, 2026 for CMS Energy and concurrently for Consumers Energy, investors approved all management proposals, including the election of all director nominees, advisory votes backing executive ...
Business Operations and StrategyFinancial Disclosures
CMS Energy Posts Strong Q1 2026 Results, Reaffirms Outlook
Positive
Apr 28, 2026
On April 28, 2026, CMS Energy reported first-quarter 2026 diluted earnings per share of $1.10, up from $1.01 a year earlier, and adjusted EPS of $1.13 versus $1.02, reflecting higher net income attributable to common shareholders despite largely f...
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.