CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) 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

+27.9%

$90.19

vs $70.53 price

Levered DCF

-$67.27

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

16.79

Safe zone

Rating

C-

Overall 1 / 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	19.81×	19.96×	19.29×	22.3×	13.96×	23.02×	26.18×	21.31×
P/B	2.3×	2.41×	2.24×	2.61×	2.84×	3.16×	3.54×	2.95×
P/S	2.46×	2.64×	2.27×	2.13×	2.57×	2.71×	2.68×	2.04×
EV / EBITDA	11.77×	11.83×	11.65×	12.76×	12.66×	12.63×	13.98×	11.84×
Gross margin	60.9%	42.7%	38.4%	32.1%	36.1%	41.0%	36.8%	34.9%
Operating margin	20.2%	19.8%	16.6%	14.2%	15.6%	19.2%	16.8%	16.9%
Net margin	12.5%	13.3%	11.9%	9.7%	18.5%	11.8%	10.3%	9.6%
Current ratio	0.98×	0.79×	0.98×	1.15×	1.19×	0.78×	0.86×	0.94×
Debt / equity	2.07×	2.02×	2.08×	2.04×	1.89×	2.26×	2.65×	2.48×
Interest coverage	2.19×	2.1×	1.92×	2.36×	2.29×	2.44×	2.42×	2.54×
Dividend yield	3.2%	3.2%	3.4%	3.0%	2.7%	2.7%	2.5%	2.9%
Payout ratio	61.9%	62.4%	65.3%	65.2%	37.6%	61.9%	64.1%	61.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.7%	12.2%	11.8%	11.9%	20.4%	13.7%	13.6%	13.8%
Return on invested capital	3.7%	3.7%	3.3%	3.7%	3.8%	3.9%	3.6%	4.3%
Return on assets	2.7%	2.8%	2.6%	2.7%	4.7%	2.5%	2.5%	2.7%
Free cash flow yield	-7.6%	-3.3%	-5.4%	-8.3%	-1.4%	-6.0%	-1.8%	-2.6%
Earnings yield	5.1%	5.1%	5.2%	4.6%	7.2%	4.3%	3.8%	4.7%
Enterprise value	$39.3B	$36.3B	$32.4B	$32.5B	$30.8B	$29.8B	$30.9B	$25.6B
Net debt / EBITDA	5.48×	5.37×	5.56×	5.57×	4.94×	5.26×	5.94×	5.37×
Cash conversion cycle (days)	-10	24	56	78	30	41	60	58