Consumers Energy Company (CMS.PB) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+63.4%

$117.63

vs $72.00 price

Levered DCF

$24.42

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.94

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.37×	21.19×	26.79×	29.52×	35.31×	37.86×	46.01×	40.44×
P/B	1.73×	1.88×	2.15×	2.4×	3.3×	3.61×	4.04×	4.12×
P/S	2.53×	2.86×	3.11×	2.84×	4.37×	4.99×	4.57×	4.41×
EV / EBITDA	10.31×	11.14×	12.61×	13.83×	16.2×	16.74×	17.48×	17.14×
Gross margin	41.5%	42.7%	38.4%	32.1%	37.4%	41.9%	37.5%	35.3%
Operating margin	20.2%	19.8%	16.6%	14.2%	16.7%	19.7%	18.1%	16.5%
Net margin	12.5%	13.3%	11.9%	9.7%	12.4%	13.2%	9.9%	10.9%
Current ratio	1.04×	1.03×	1.01×	1.13×	1.44×	0.88×	1.09×	1.22×
Debt / equity	1.08×	1.07×	1.05×	1.02×	0.96×	0.99×	0.96×	1.01×
Interest coverage	2.16×	2.1×	2.76×	3.65×	3.78×	3.82×	2.39×	3.69×
Dividend yield	5.8%	3.7%	3.0%	3.2%	2.4%	1.5%	1.4%	1.9%
Payout ratio	118.0%	79.5%	78.6%	92.1%	83.4%	57.2%	64.1%	75.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.5%	8.8%	8.2%	8.2%	9.4%	9.5%	8.8%	10.2%
Return on invested capital	3.7%	3.9%	3.5%	3.9%	3.6%	4.2%	4.6%	4.3%
Return on assets	2.9%	2.9%	2.8%	2.8%	3.0%	3.2%	2.9%	3.2%
Free cash flow yield	10.3%	-2.6%	-3.3%	-6.7%	-1.3%	-3.8%	-1.4%	-1.8%
Earnings yield	5.0%	4.7%	3.8%	3.4%	2.8%	2.6%	2.2%	2.5%
Enterprise value	$34.6B	$33.7B	$34.5B	$34.7B	$39.1B	$39.4B	$38.7B	$35.5B
Net debt / EBITDA	3.85×	4.03×	4.13×	4.1×	3.49×	3.6×	3.35×	3.36×
Cash conversion cycle (days)	-39	36	57	79	31	42	43	45