CMS Energy Corporation (CMS) Fair Value & Analysis
Utilities · US · Market cap $23.2B · ISIN US1258961002
What is CMS Energy Corporation really worth?
CMS Energy Corporation
CMS · US
Below-average quality, and trading another 71% above our fair value of $40.01.
Strengths
Risks
For context
Fair value as of: Aug 21, 2026
From 14 valuation models · updated 15 days ago
Share price −4.4% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($63.41). The favourable scenario is already priced in.
- Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts.
- A fairly wide model range ($30.00 to $63.41) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.
How to read this chart
60‑month range $46.35 – $79.32 · fair‑value band $30.00 – $63.41 · the $68.59 price screens above the $40.01 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 21, 2026.
Analysis
CMS Energy Corporation (CMS) currently trades at $68.59, while our model-based Fair Value estimate is $40.01, implying the stock looks roughly 71.4% overvalued today. The Quality Score stands at 44/100 (below-average quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of $49.39 per share, and 0 of the 12 models we run sit above the $68.59 price. Bear case: the Asset-Based group reads lowest at $19.83, and 12 of the 12 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, CMS Energy Corporation generated revenue of $8.8B at a net margin of 12.6%. Revenue grew 11.6% year over year. It earns a return on equity of 10.4%. Net debt stands at $18.3B. Fundamentals as of Aug 21, 2026
Our scenario range runs from $30.00 (bear case) to $63.41 (bull case); at $68.59, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 14% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at −37% fair-value upside, at −42%, CMS screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.9149 per share, which is 2.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 14 models by family
Widest divergence: Growth Earnings ($49.39) versus Asset-Based ($19.83). Highest evidence: Residual Income (74).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 40 · Market factors (momentum, volatility) 50
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
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.
Full company description
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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
CMS Energy Corporation reported revenue of $8.5B in FY2025 versus $7.3B in FY2021, a compound +3.9%/yr. Reported net income was $1.1B in FY2025, compounding −5.7%/yr from FY2021.
of which total revenue +1.8 % · buybacks/dilution −0.8 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
CMS screens 71% overvalued. Compare with NextEra Energy, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Why Is CMS Energy (CMS) Down 6.9% Since Last Earnings Report?
- CMS Energy (CMS) Could Be 11% Undervalued Following Its Preferred Dividend Declaration
- Consumers Energy Invests in Reliability Upgrades to Secure the Grid for Michigan Customers
- CMS Energy Stock: Is Wall Street Bullish or Bearish?
Peer Group
Utilities - Regulated Electric · 153 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Utilities - Regulated Electric median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 66/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| NextEra Energy, Inc NEE | $83.47 | $32.94 | −61% |
| The Southern Company SO | $88.25 | $58.81 | −33% |
| Duke Energy Corporation DUK | $120.25 | $74.89 | −38% |
| National Grid plc NGG | $80.68 | $63.94 | −21% |
| American Electric Power Company AEP | $122.96 | $77.23 | −37% |
| Dominion Energy, Inc D | $66.01 | $46.34 | −30% |
| Entergy Corporation ETR | $105.75 | $52.92 | −50% |
| Xcel Energy Inc XEL | $76.34 | $44.61 | −42% |
| Exelon Corporation EXC | $43.96 | $37.60 | −14% |
| Endesa, S.A ELE | €42.30 | €25.72 | −39% |
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