CMS Energy
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 segme…
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.Looks overvalued
5-year outlook: Not shown because confidence is low: Earnings-based DCF is somewhat apart.
Why: Latest free cash flow is depressed by heavy investment or one-off items, so a three-year average is used instead.
Details and the full model are below.
Market price above modeled range
Showing the EV/EBITDA (12x) you selected on the company card, using 4.44% growth, 2.2% terminal growth and 8.6% discount. The range varies these assumptions slightly; it is illustrative, not investment advice.
Assumptions: growth 4.44%, discount rate 8.60%, terminal growth 2.20% (sector defaults). See a worked example.
Blended growth assumption: 4.4% (sector default 4.0%, own revenue history 3.9%, analyst revenue consensus 4.9%).
Analyst consensus expects revenue growth of 4.9% a year; the growth assumption used is 4.4%.
Adjust assumptions
Show the recommended model instead
Why this model: Latest free cash flow is depressed by heavy investment or one-off items, so a three-year average is used instead.
Compare models- Recommended: Normalised free-cash-flow DCF — USD 66.36 (-3.4%)
-
EPS-based Gordon proxy
— USD 44.46 (-35.2%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
-
DCF (trailing free cash flow)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
-
FCFF (steady state)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
-
EV/EBITDA (12x)
— USD 28.61 (-58.3%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
-
Fade DCF (10-year growth fade)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
-
EV/Sales (Rule of 40)
— USD 115.18 (+67.8%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 13.33 | -415.2% |
| Base USD 28.61 | -140.0% |
| Bull USD 43.89 | -56.4% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 64 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 3 of 5 years | 12 / 20 |
| Growth | revenue +1.1% a year | 12 / 20 |
| Balance sheet | net debt 8.3x EBITDA | 0 / 20 |
| Margins | EBITDA margin 27% | 20 / 20 |
Peers in Utilities
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| CMS (this company) | USD 68.66 | -3.5% | 24.7 | 2.2 | 3.3% | 64 |
| ED Consolidated Edison | USD 119.93 | 30.7% | 20.0 | 1.7 | 2.7% | 78 |
| ENGI.PA Engie SA | EUR 23.81 | 16.6% | 15.8 | 1.8 | 7.5% | 76 |
| D Dominion Energy | USD 68.26 | -3.4% | 22.2 | 2.0 | 3.9% | 76 |
| FORTUM.HE Fortum Oyj | EUR 23.13 | -3.5% | 25.7 | 2.6 | 6.1% | 72 |
| CNA.L Centrica plc | GBP 1.50 | -5.9% | – | 2.3 | 3.3% | 92 |
| EIX Edison International | USD 59.61 | -8.9% | 6.3 | 1.3 | 5.7% | 52 |
| NTGY.MC Naturgy Energy Group, S.A. | EUR 29.30 | -9.7% | 14.0 | 3.0 | 5.9% | 70 |
| NEE NextEra Energy | USD 86.48 | -13.8% | 15.6 | 2.9 | 2.8% | 72 |
| Peer median | 15.8 | 2.2 | ||||
Dividends
Paid in the last 12 months: USD 2.82 per share · yield 4.11% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 2.280 |
| 2025 | 2.170 |
| 2024 | 2.060 |
| 2023 | 1.950 |
| 2022 | 1.840 |
| 2021 | 1.740 |
Trailing 12-month financials
TTM through 30 Sep 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 12:56
| Revenue | USD 8,975,000,000 |
|---|---|
| EBITDA | USD 2,393,000,000 |
| EBIT | USD 1,500,000,000 |
| Net income | USD 872,000,000 |
| Free cash flow | USD -1,743,000,000 |
| Capital expenditures | USD 4,019,000,000 |
| Debt | USD 20,207,000,000 |
| Cash | USD 451,000,000 |
| Working capital | USD -182,000,000 |
| Shares outstanding | 313,200,000 |
| Reported dividends per share | USD 2.2542 |