CMS Energy Corp. (CMS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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CMS Energy Corp.

Why is CMS Energy Corp. ?

Weak Long Term Fundamental Strength with a 4.23% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.76 times
The company has been able to generate a Return on Capital Employed (avg) of 6.18% signifying low profitability per unit of total capital (equity and debt)

With ROCE of 6.36%, it has a expensive valuation with a 1.51 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.37%, its profits have risen by 6.3% ; the PEG ratio of the company is 5

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is CMS Energy Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

CMS Energy Corp.

-3.47%

0.88

17.29%

S&P 500

22.61%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.03%

EBIT Growth (5y)

4.86%

EBIT to Interest (avg)

2.23

Debt to EBITDA (avg)

5.76

Net Debt to Equity (avg)

1.96

Sales to Capital Employed (avg)

0.31

Tax Ratio

15.60%

Dividend Payout Ratio

61.56%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.18%

ROE (avg)

11.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.55

EV to EBIT

24.03

EV to EBITDA

13.68

EV to Capital Employed

1.52

EV to Sales

4.86

PEG Ratio

3.74

Dividend Yield

2.81%

ROCE (Latest)

6.33%

ROE (Latest)

10.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 9

DIVIDEND PAYOUT RATIO(Y)

Highest at 151.43%

INVENTORY TURNOVER RATIO(HY)

Highest at 8.47 times

-12What is not working for the Company

ROCE(HY)

Lowest at 11.29%

INTEREST COVERAGE RATIO(Q)

Lowest at 261.19

RAW MATERIAL COST(Y)

Grown by 10.32% (YoY

NET SALES(Q)

Lowest at USD 1,829 MM

OPERATING PROFIT(Q)

Lowest at USD 572 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 31.27 %

PRE-TAX PROFIT(Q)

Lowest at USD 129 MM

NET PROFIT(Q)

Lowest at USD 120 MM

EPS(Q)

Lowest at USD 0.38

Here's what is working for CMS Energy Corp.

Dividend per share

Highest at USD 9 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Inventory Turnover Ratio

Highest at 8.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 151.43%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for CMS Energy Corp.

Interest Coverage Ratio

Lowest at 261.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at USD 1,829 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 572 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 31.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 129 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Fallen at -29.51%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 120 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.38

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 10.32% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.65 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income