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CMS-PC Stock Analysis - CMS ENERGY CORP AI Rating

CMS-PC NYSE Electric & Other Services Combined MI CIK: 0000811156
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 CMS-PC Key Takeaways

Revenue: $8.5B
Net Margin: 12.5%
Free Cash Flow: $-515.0M
Current Ratio: 0.98x
Debt/Equity: 1.95x
EPS: $3.53
AI Rating: HOLD with 62% confidence

Investment Thesis

CMS Energy demonstrates stable revenue growth and solid profitability margins (20.2% operating, 12.5% net) typical of regulated utilities, but faces financial constraints from high leverage (1.95x D/E) and negative free cash flow that exceed capital expenditure needs. The company's capital-intensive business model and modest earnings growth (0.9% YoY net income) suggest limited near-term upside despite operational stability.

CMS-PC Strengths

  • + Strong operating margins at 20.2% reflect pricing power and operational efficiency in regulated utility segment
  • + Consistent revenue growth of 2.8% YoY demonstrates steady demand in electric and gas services
  • + Healthy operating cash flow of $2.2B provides base liquidity despite negative FCF
  • + EPS growth of 6.0% YoY outpacing net income growth suggests effective capital allocation

CMS-PC Risks

  • ! Negative free cash flow of -$515M (-6.0% FCF margin) indicates capital spending exceeds cash generation, limiting flexibility
  • ! High leverage at 1.95x D/E with substantial long-term debt of $17.8B constrains financial flexibility and increases refinancing risk
  • ! Weak interest coverage of 2.2x provides limited cushion for debt service if operational performance declines
  • ! Current ratio of 0.98x signals tight short-term liquidity with current liabilities approaching current assets
  • ! Minimal net income growth of 0.9% YoY suggests limited organic earning expansion

Key Metrics to Watch

CMS-PC Financial Metrics

Revenue
$8.5B
Net Income
$1.1B
EPS (Diluted)
$3.53
Free Cash Flow
$-515.0M
Total Assets
$39.9B
Cash Position
$509.0M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

CMS-PC Profitability Ratios

Gross Margin N/A
Operating Margin 20.2%
Net Margin 12.5%
ROE 11.7%
ROA 2.7%
FCF Margin -6.0%

CMS-PC vs Default Sector

How CMS ENERGY CORP compares to Default sector averages

Net Margin
CMS-PC 12.5%
vs
Sector Avg 12.0%
CMS-PC Sector
ROE
CMS-PC 11.7%
vs
Sector Avg 15.0%
CMS-PC Sector
Current Ratio
CMS-PC 1.0x
vs
Sector Avg 1.8x
CMS-PC Sector
Debt/Equity
CMS-PC 1.9x
vs
Sector Avg 0.7x
CMS-PC Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CMS-PC Balance Sheet & Liquidity

Current Ratio
0.98x
Quick Ratio
0.98x
Debt/Equity
1.95x
Debt/Assets
0.0%
Interest Coverage
2.16x
Long-term Debt
$17.8B

CMS-PC 5-Year Financial Trend

CMS-PC 5-year financial data: Year 2021: Revenue $7.1B, Net Income $680.0M, EPS $2.39. Year 2022: Revenue $8.3B, Net Income $755.0M, EPS $2.64. Year 2023: Revenue $8.3B, Net Income $1.4B, EPS $4.66. Year 2024: Revenue $8.3B, Net Income $837.0M, EPS $2.85. Year 2025: Revenue $8.3B, Net Income $887.0M, EPS $3.01.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: CMS ENERGY CORP's revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.01 reflects profitable operations.

CMS-PC Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-6.0%
Free cash flow / Revenue

CMS-PC Quarterly Performance

Quarterly financial performance data for CMS ENERGY CORP including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $1.7B $253.0M $0.84
Q2 2025 $1.6B $198.0M $0.65
Q1 2025 $2.1B $287.0M $0.96
Q3 2024 $1.6B $176.0M $0.60
Q2 2024 $1.5B $198.0M $0.65
Q1 2024 $2.1B $204.0M $0.69
Q3 2023 $1.6B $165.0M $0.56
Q2 2023 $1.5B $148.0M $0.50

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CMS-PC Capital Allocation

Operating Cash Flow
$2.2B
Cash generated from operations
Capital Expenditures
$2.8B
Investment in assets
Dividends Paid
$101.0M
Returned to shareholders

CMS-PC SEC Filings

Access official SEC EDGAR filings for CMS ENERGY CORP (CIK: 0000811156)

📋 Recent SEC Filings

Date Form Document Action
Mar 4, 2026 4 xslF345X05/wk-form4_1772655449.xml View →
Mar 2, 2026 4 xslF345X05/wk-form4_1772473720.xml View →
Feb 27, 2026 4 xslF345X05/wk-form4_1772209806.xml View →
Feb 23, 2026 4 xslF345X05/wk-form4_1771883032.xml View →
Feb 23, 2026 4 xslF345X05/wk-form4_1771883015.xml View →

Frequently Asked Questions about CMS-PC

What is the AI rating for CMS-PC?

CMS ENERGY CORP (CMS-PC) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CMS-PC's key strengths?

Strong operating margins at 20.2% reflect pricing power and operational efficiency in regulated utility segment. Consistent revenue growth of 2.8% YoY demonstrates steady demand in electric and gas services.

What are the risks of investing in CMS-PC?

Negative free cash flow of -$515M (-6.0% FCF margin) indicates capital spending exceeds cash generation, limiting flexibility. High leverage at 1.95x D/E with substantial long-term debt of $17.8B constrains financial flexibility and increases refinancing risk.

What is CMS-PC's revenue and growth?

CMS ENERGY CORP reported revenue of $8.5B.

Does CMS-PC pay dividends?

CMS ENERGY CORP pays dividends, with $101.0M distributed to shareholders in the trailing twelve months.

Where can I find CMS-PC SEC filings?

Official SEC filings for CMS ENERGY CORP (CIK: 0000811156) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CMS-PC's EPS?

CMS ENERGY CORP has a diluted EPS of $3.53.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI