CMS Energy Corporation (CMS) AI Stock Analysis

CMS Energy Corporation provides energy services primarily in Michigan through three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility generates, transmits, distributes, and retails electricity using coal, wind, natural gas, renewable energy, oil, and nuclear power across more than 82,000 miles of electric distribution lines, serving over 1.9 million electric customers. The Gas Utility procures, transmits, stores, and distributes natural gas across transmission lines, storage fields, distribution mains, and compressor stations to over 1.8 million gas customers. The Enterprises segment focuses on independent power production, marketing, and the development and operation of renewable energy generation.

CMS Energy's revenue rose from $7.33B in FY2021 to $8.54B in FY2025, reflecting a 5-year CAGR of 5.9%. Annual revenue growth was 14.2% in FY2021, 17.3% in FY2022, -13.2% in FY2023, 0.7% in FY2024, and 13.6% in FY2025. Gross margin expanded to 60.9% in FY2025 from 36.1% in FY2021, while operating margin rose to 20.2%. Net income reached $1.07B in FY2025, or $3.61 per share. Over the trailing twelve months, revenue was $8.81B with an operating margin of 17.2%. In the quarter ended June 30, 2026, revenue fell 0.5% year-over-year and quarterly earnings dropped 43.9%.

As of June 30, 2026, CMS Energy held $241.0M in cash and short-term investments against $19.30B in total debt, resulting in net debt of $19.06B. Shareholders' equity was $9.77B, yielding a debt-to-equity ratio of 1.97 and a current ratio of 0.92. In FY2025, operating cash flow generated $2.23B, while capital expenditures totaled $3.82B, leading to free cash flow of -$1.59B. The company funded capital needs partly through $525.0M of share issuance, while paying $663.0M in dividends.

CMS Energy trades at a trailing P/E of 20.6x and a forward P/E of 15.2x, compared with the median of its S&P 500 Utilities peers of 21.0x and 16.0x, respectively. Its price-to-sales ratio is 2.4x versus the peer median of 2.9x, and EV/EBITDA is 11.8x versus the peer median of 12.2x. Over the past year, CMS returned -5.2%, lagging the SPY return of 16.8%. Over five years, CMS returned 33.1% compared to 83.0% for SPY.

CMS Energy pays a forward annual dividend of $2.28 per share, representing a 3.32% dividend yield based on its last close of $68.70. The dividend has been paid for 20 consecutive years, with a 5-year annualized dividend growth rate of 5.9%. Its payout ratio is 66.6%. The last ex-dividend date was August 7, 2026.

Wall Street analysts have 4 Strong Buy, 3 Buy, and 8 Hold ratings on CMS Energy, with no Sell or Strong Sell ratings. The mean price target of $76.08 implies upside of 10.7% from the last close of $68.70. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $3.87 on revenue of $8.96B. For the next fiscal year, 15 analysts project EPS of $4.15 and revenue of $9.39B. CMS beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for October 27, 2026.

This page is an AI-written research summary of CMS Energy Corporation (CMS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: CMS income statement, CMS balance sheet, CMS key metrics, CMS analyst forecast, CMS chart. See the CMS stock overview for the latest quote and news.