ScoreWhy is CMS Energy Corp. ?
1
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)
2
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 ReportHow much should you hold?
- Overall Portfolio exposure to CMS Energy Corp. should be less than 10%
- Overall Portfolio exposure to Power should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is CMS Energy Corp. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
CMS Energy Corp.
6.67%
0.88
17.29%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality 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
0
Institutional Holding
100.00%
ROCE (avg)
6.18%
ROE (avg)
11.34%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
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%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
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 
Financial Trend8What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 7.22
INVENTORY TURNOVER RATIO(HY)
Highest at 10.76 times
NET SALES(Q)
Highest at USD 2,730 MM
OPERATING PROFIT(Q)
Highest at USD 902 MM
PRE-TAX PROFIT(Q)
Highest at USD 362 MM
NET PROFIT(Q)
Highest at USD 340 MM
EPS(Q)
Highest at USD 1.1
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 1,940 MM
RAW MATERIAL COST(Y)
Grown by 9.76% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.22 times
INTEREST(Q)
Highest at USD 211 MM
Here's what is working for CMS Energy Corp.
Dividend per share
Highest at USD 7.22 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 2,730 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 902 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 362 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 340 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.1
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 10.76 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at USD 412 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for CMS Energy Corp.
Operating Cash Flow
Lowest at USD 1,940 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
Highest at USD 211 MM
in the last five periods and Increased by 9.9% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debtors Turnover Ratio
Lowest at 7.22 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 9.76% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
