CMS Energy Corporation (CMS) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: CMS Energy Corporation

Updated on October 31, 2026 · accounts published on October 27, 2026

A steadily growing regulated utility carrying a heavy debt load

CMS Energy trades at a P/E of 24.6 over the last 12 months, 19 % above its sector median, while EPS grew 6 % over the same period.

• Is CMS Energy expensive or cheap? Its P/E of 24.6 is 19 % above the utility sector median and higher than in 70 % of the past decade.
• How is the business doing? Revenue grew 14 % and EPS 6 % over the last 12 months, but the 14 % operating margin trails its 18 % decade average.
• How strong is the balance sheet? Net debt of $63.59 per share equals 91 % of the share price (fiscal 2025), and interest is covered just 2.2 times.
• What to expect from the next earnings? Analysts expect EPS of $1.00 for the quarter due February 4, 2027, and CMS Energy has beaten estimates in 7 of the last 8 quarters.
• Is the dividend sustainable with this much debt? The fiscal 2025 payout of 62 % sits well under the 80 % utility ceiling, after 11 straight years of dividend increases.

Is CMS Energy expensive or cheap?

Over the last 12 months CMS Energy trades at a P/E of 24.6. That is 7 % above its ten-year median of 23.0 and 19 % above the 20.7 median of 83 sector peers. Across the decade the multiple ranged from 11.6 to 33.8, and the stock traded at a lower P/E than today 70 % of the time. EV/EBITDA stands at 16.3× and price to book at 2.3×. The share price is down 2 % over 12 months and sits 12 % below its 52-week high of $79.94, so the premium is not the product of a recent run-up in the shares.

How is the business doing?

Growth is solid for a utility. Revenue rose 14 % and EPS 6.0 % over the last 12 months, in line with the 6.1 % annual EPS growth of fiscal 2020-2025. Profitability is less comfortable. The trailing operating margin of 14 % sits below both the 20 % of fiscal 2025 and the 18 % average of fiscal 2014-2025, and the net margin is 9.7 %. ROE of 9.2 % falls inside the 8 % to 12 % regulated range. ROIC of 2.4 % is 1.6 points under the 4.0 % sector median and has not topped 10 % in any of the last ten fiscal years.

How strong is the balance sheet?

Debt is the weak spot. At the end of fiscal 2025 net debt was $63.59 per share, 91 % of the current price. Net debt to EBITDA reached 5.7×, just above the 5.5× ceiling usually considered healthy for utilities. Interest coverage of 2.2× misses the 3.0× threshold. Over the last 12 months debt to equity is 2.08 and the current ratio is 0.95, so short-term assets do not quite cover short-term liabilities. On the positive side, a Piotroski score of 7 out of 9 shows that most of the company's fundamentals are moving in the right direction.

What to expect from the next earnings?

On October 27, 2026 CMS Energy reported EPS of $1.44 against $1.35 expected. That 6.7 % beat extends a record of topping estimates in 7 of the last 8 quarters. The next report is due on February 4, 2027, and analysts are looking for EPS of $1.00. Among 9 analysts, the 2026 consensus has held at $3.87 per share over the last 30 days, and revenue estimates have barely moved either. Of the 30 analysts covering the company, 16 rate it a buy, 14 a hold and none a sell, which leaves a stable backdrop with no sign of revisions.

Is the dividend sustainable with this much debt?

Utilities behave like bonds with a growth kicker: slow, regulated earnings that fund a reliable dividend. That is why the sector is judged on debt, interest rates and payout consistency. The payout was 62 % of earnings in fiscal 2025, below the 80 % healthy limit. The dividend has grown 6.6 % a year over fiscal 2015-2025, above the 4 % benchmark, with 11 consecutive annual increases, and the yield is 3.2 % over the last 12 months. The risk is in the financing: interest coverage of only 2.2× leaves the dividend more exposed to higher rates than the payout alone suggests.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.