CMS

Utilities

CMS Energy Corporation · Regulated Electric · $23B

UQS Score — Balanced Preset
45.8
Below Average

CMS Energy Corporation scores 45.8/100 using the Balanced preset.

UQS vs Utilities Sector
CMS
45.8
Sector avg
43.5
Quality
Neutral
Moat
Neutral
Growth
Neutral
Risk
Weak
Valuation
Good

What is CMS Energy Corporation?

CMS Energy Corporation is a Michigan-based energy holding company delivering electricity and natural gas to residential, commercial, and industrial customers across the state. Its regulated utility operations form the core of its business, providing essential services to nearly four million customers.

CMS Energy operates through three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment handles generation, transmission, and distribution of electricity using a diverse mix of sources including wind, gas, coal, nuclear, and renewables. The Gas Utility segment manages the purchase, storage, and distribution of natural gas through an extensive pipeline and storage network. The Enterprises segment focuses on independent power production and the development of renewable generation projects.

CMS Energy was incorporated in 1987 and is headquartered in Jackson, Michigan.

  • Electric generation and distribution across Michigan
  • Natural gas transmission, storage, and distribution
  • Renewable energy development and independent power production
  • Regulated utility services for residential and commercial customers

Is CMS a Good Stock to Buy?

UQS Score rates CMS as Below Average overall, reflecting a mixed picture across its five quality pillars.

Valuation stands out as the relative bright spot in CMS's profile, rated Good — suggesting the stock is not priced at a significant premium relative to its fundamentals. Quality, Moat, and Growth all register as Neutral, consistent with a regulated utility operating in a stable but low-growth environment.

Risk is the weakest pillar, rated Weak — a meaningful flag for investors who prioritize capital preservation, particularly given the leverage typical of large utility balance sheets.

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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does CMS pay dividends?

Yes — CMS Energy Corporation pays a dividend.

CMS Energy pays a regular dividend, consistent with the utility sector's tradition of returning cash to shareholders. Regulated utilities like CMS generate relatively predictable cash flows from rate-based operations, which supports ongoing dividend payments. Income-oriented investors often look to utility dividends as a source of stability, though the Risk pillar rating warrants attention alongside any yield consideration.

When does CMS report earnings?

CMS Energy reports earnings on a quarterly cadence, typical for US-listed equities.

As a regulated utility, CMS Energy's quarterly results tend to reflect rate-base growth, seasonal energy demand, and the timing of capital investments. Revenue and earnings patterns are generally more predictable than those of unregulated businesses, though weather variability and regulatory decisions can influence outcomes quarter to quarter.

For the most recent quarter's results, visit CMS Energy's investor relations page directly.

CMS Price History

+39.4% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in CMS Energy Corporation?

$
Today it would be worth
$13,487
That's a +34.9% total return, or +6.2% annualized.

Based on CMS Energy Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

CMS Long-term Outlook

CMS Energy's Growth pillar is rated Neutral, reflecting the measured pace of expansion typical of regulated Michigan utility operations. The company's long-term trajectory is tied closely to rate-base investment cycles, infrastructure modernization, and the ongoing buildout of renewable generation capacity. The Weak Risk pillar introduces caution — elevated leverage and regulatory dependency are structural features of the business that can amplify downside in adverse rate or interest-rate environments.

Growth drivers

  • Ongoing capital investment in grid modernization and infrastructure upgrades
  • Expansion of renewable energy generation capacity through the Enterprises segment
  • Steady customer base growth across Michigan's electric and gas service territories

Key risks

  • High financial leverage common to capital-intensive regulated utilities
  • Regulatory risk — rate decisions by Michigan authorities directly affect revenue
  • Rising interest rates can pressure utility valuations and increase borrowing costs

CMS vs Peers

CMS Energy operates in a regulated utility landscape alongside several peers serving overlapping regional and national markets.

SOJDCMS scores lower
Southern Company (Series 2)

Southern Company operates a much larger multi-state regulated utility footprint across the southeastern US, giving it greater geographic diversification than CMS's Michigan-focused operations.

ESSimilar UQS
Eversource Energy

Eversource serves New England customers across electric and gas networks, competing with CMS for utility-focused capital but operating in a distinct regulatory environment.

EMA.TOCMS scores higher
Emera Incorporated

Emera is a Canadian-headquartered utility with operations across North America and the Caribbean, offering investors broader geographic exposure compared to CMS's Michigan concentration.

Frequently Asked Questions

What does CMS Energy do?

CMS Energy is a Michigan-based energy holding company that generates, transmits, and distributes electricity and natural gas to nearly four million customers. It operates through regulated electric and gas utility segments, plus an Enterprises segment focused on renewable power development.

Does CMS pay dividends?

Yes, CMS Energy pays a regular dividend. The company's regulated utility cash flows support ongoing dividend distributions, making it a consideration for income-oriented investors. However, the Weak Risk pillar rating is worth factoring into any dividend sustainability assessment.

When does CMS report earnings?

CMS Energy reports on a quarterly cadence, standard for US-listed companies. Specific upcoming dates are not maintained in our data — check CMS Energy's investor relations page for the current earnings calendar.

Is CMS a good stock to buy?

UQS Score rates CMS as Below Average overall. Valuation is rated Good, but the Risk pillar is Weak, and Quality, Moat, and Growth are all Neutral. Whether that profile fits your portfolio depends on your risk tolerance and income objectives. See the full breakdown by signing up.

Is CMS overvalued?

CMS Energy's Valuation pillar is rated Good, suggesting the stock is not trading at an extreme premium relative to its fundamentals. That said, valuation alone does not determine investment merit — the Weak Risk rating and Neutral growth profile are part of the complete picture.

How does CMS compare to its competitors?

CMS Energy is a Michigan-focused regulated utility, which means it has less geographic diversification than peers like Southern Company or Emera. Eversource offers a comparable regional utility model in New England. The UQS platform scores each peer independently — Pro members can compare pillar-level ratings side by side.

What is CMS Energy's market cap bracket?

CMS Energy is classified as a large-cap company, placing it among the more substantial publicly traded utilities in the US market.

Who founded CMS Energy?

CMS Energy Corporation was incorporated in 1987. Founding and historical leadership details are widely available through the company's official history and public filings on its investor relations site.

Is CMS a long-term quality indicator?

As a long-term quality indicator, CMS scores Below Average on the UQS composite. Regulated utilities can offer stability, but the Weak Risk pillar and Neutral scores across Quality, Moat, and Growth suggest the business does not rank among the higher-quality names in the sector by UQS criteria.

What is the main competitive advantage of CMS Energy?

CMS Energy's primary advantage is its regulated monopoly position in Michigan — it serves a defined service territory with limited direct competition. This regulatory structure provides revenue predictability, though it also caps growth potential and subjects the company to rate-setting decisions by state authorities.

What sector does CMS belong to?

CMS Energy operates in the Utilities sector, specifically as a regulated electric and gas utility. Utilities are generally considered defensive investments due to their essential-service nature, though they carry interest-rate sensitivity and regulatory risk.

Is CMS a growth stock or value stock?

Based on UQS pillar labels, CMS leans neither strongly toward growth nor deep value. Growth is rated Neutral, reflecting the limited expansion typical of regulated utilities, while Valuation is rated Good — suggesting reasonable pricing rather than a classic value opportunity.

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Pro Analysis

CMS — Score History

40455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 23 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202646.047.452.051.74.667.10.0
May 22, 202646.047.452.051.74.667.6-0.1
May 21, 202646.147.452.051.74.667.9+0.1
May 20, 202646.047.452.051.34.667.8-0.1
May 19, 202646.147.452.051.34.668.30.0
May 16, 202646.147.452.051.34.668.6+0.2
May 15, 202645.947.452.051.04.667.8-0.1
May 14, 202646.047.452.051.04.668.0+0.1
May 12, 202645.947.452.051.04.667.8-0.1
May 11, 202646.047.452.051.04.668.1-0.2

CMS — Pillar Breakdown

Quality

47.4/100 (25%)

CMS Energy Corporation has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityModerate

Profitability relative to shareholders' equity.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

51.7/100 (20%)

CMS Energy Corporation shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendModerate

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

4.6/100 (15%)

CMS Energy Corporation presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityWeak

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

66.3/100 (15%)

CMS Energy Corporation trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

52/100 (25%)

CMS Energy Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CMS.

Score Composition

Quality
47.4×25%11.8
Growth
51.7×20%10.3
Risk
4.6×15%0.7
Valuation
66.3×15%9.9
Moat
52.0×25%13.0
Total
45.8Below Average

Financial Data

More Stock Analysis

How is the CMS UQS Score Calculated?

The UQS (Unified Quality Score) for CMS Energy Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses CMS Energy Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether CMS Energy Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.