CMS
Utilities · Utilities - Regulated Electric
Performance
CMS (CMS) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
CMS (CMS) operates in the Utilities - Regulated Electric space within the Utilities sector. With a market cap of $23.0B, it qualifies as a mid-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.
- Forward P/E (17.9×) is lower than trailing P/E (20.6×) — analysts expect earnings to improve
- Revenue growth of 12% YoY shows solid business momentum
- Healthy profit margin of 12.5%
- Dividend yield of 3.10% provides consistent income on top of price appreciation
- Low beta of 0.35 — less volatile than the market, suitable for conservative portfolios
- High debt-to-equity of 189.84× increases financial risk, especially with elevated interest rates
- Current ratio below 1 (0.84×) — short-term liabilities exceed current assets
Verdict
Strong Buy
Multiple fundamental strengths with few red flags. Long-term buyers may find this compelling.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
Current DY
3.10%
5Y Avg Annual
$1.8328
Last Payment
$0.5700
Ex-Date
05/08/2026
Annual dividends paid per share
| Ex-Date | Payment | Amount | Est. DY |
|---|---|---|---|
Latest05/08/2026 | 05/29/2026 | $0.5700 | 3.06% |
02/17/2026 | 03/10/2026 | $0.5700 | 3.06% |
11/07/2025 | 11/28/2025 | $0.5430 | 2.91% |
08/08/2025 | 08/29/2025 | $0.5430 | 2.91% |
05/09/2025 | 05/30/2025 | $0.5430 | 2.91% |
02/14/2025 | 03/07/2025 | $0.5430 | 2.91% |
11/13/2024 | 12/04/2024 | $0.5150 | 2.76% |
08/02/2024 | 08/23/2024 | $0.5150 | 2.76% |
Magic Number
Shares needed to self-fund your next purchase
$74.59
Price
$0.5700
Last div. (quarterly)
131
shares
Own 131 CMS shares ($9,771.29) and each quarterly dividend pays for 1 new share — the snowball runs on its own.
Investment target
$9,771.29
New shares / year
+4 shares
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
EPS (TTM)
$3.62
P/E (TTM)
20.6
Fwd P/E
17.9
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $74.59
Graham Number
√(22.5 × EPS × Book Value)
$49.36
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
$32.55
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
8/10
80% score
Pays dividends
15Y hist.15+ years of dividend history
Dividend consistency (5Y+)
15 yrsUninterrupted dividend payments for at least 5 years
ROE above 10%
10.4%Return on equity — measures how efficiently capital is used
Positive profit margin
12.5%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+11.6%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
+8.9%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
189.84×Low financial leverage reduces risk of distress
Current ratio above 1
0.84×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$226M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
3.10%Stock must distribute income to shareholders
Related Assets
Utilities
About CMS
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.
Sector
Utilities
Industry
Utilities - Regulated Electric
Location
Jackson, United States
Employees
8,350