Latest Ratios: P/E Ratio 21.8x · EV/EBITDA 14.6x · ROE 11.6%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $23.8B | $21.0B | $19.9B | $16.9B | $18.4B | $18.8B | $17.5B | $17.9B | $14.0B | $13.3B | $11.6B |
| Enterprise Value | $42.1B | $39.3B | $36.4B | $32.4B | $32.5B | $30.9B | $29.9B | $31.0B | $25.7B | $23.6B | $21.4B |
| P/E Ratio → | 21.82 | 19.81 | 20.02 | 19.29 | 22.22 | 13.96 | 23.11 | 26.29 | 21.40 | 28.84 | 21.02 |
| P/S Ratio | 2.79 | 2.46 | 2.65 | 2.27 | 2.14 | 2.57 | 2.72 | 2.70 | 2.04 | 2.02 | 1.81 |
| P/B Ratio | 2.38 | 2.16 | 2.27 | 2.08 | 2.42 | 2.62 | 2.87 | 3.53 | 2.93 | 2.97 | 2.71 |
| P/FCF | — | — | — | — | — | — | — | — | — | 332.05 | — |
| P/OCF | 10.65 | 9.40 | 8.39 | 7.34 | 21.48 | 10.35 | 13.69 | 9.98 | 8.25 | 7.79 | 7.13 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.61 | 4.84 | 4.34 | 3.79 | 4.21 | 4.65 | 4.68 | 3.73 | 3.58 | 3.35 |
| EV / EBITDA | 14.64 | 13.67 | 13.34 | 13.41 | 13.85 | 13.66 | 13.14 | 14.74 | 12.25 | 10.63 | 10.36 |
| EV / EBIT | 24.39 | 19.31 | 19.86 | 20.28 | 22.90 | 23.34 | 22.72 | 25.34 | 20.84 | 17.81 | 16.98 |
| EV / FCF | — | — | — | — | — | — | — | — | — | 589.67 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 60.9% | 60.9% | 42.7% | 38.4% | 32.1% | 36.1% | 41.0% | 36.8% | 34.9% | 38.0% | 36.7% |
| Operating Margin | 20.2% | 20.2% | 19.8% | 16.6% | 14.2% | 15.6% | 19.2% | 16.8% | 16.9% | 20.3% | 19.6% |
| Net Profit Margin | 12.5% | 12.5% | 13.3% | 11.9% | 9.7% | 18.5% | 11.8% | 10.3% | 9.6% | 7.0% | 8.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.6% | 11.6% | 11.9% | 11.3% | 11.3% | 20.4% | 13.6% | 13.8% | 14.2% | 10.5% | 13.3% |
| ROA | 2.8% | 2.8% | 2.9% | 2.7% | 2.8% | 4.6% | 2.7% | 2.6% | 2.8% | 2.1% | 2.6% |
| ROIC | 4.9% | 4.9% | 4.6% | 4.1% | 4.5% | 4.6% | 5.0% | 4.8% | 5.6% | 7.0% | 6.9% |
| ROCE | 5.0% | 5.0% | 4.7% | 4.2% | 4.5% | 4.3% | 4.8% | 4.8% | 5.5% | 6.8% | 6.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.95 | 1.95 | 1.90 | 1.93 | 1.89 | 1.74 | 2.04 | 2.63 | 2.46 | 2.34 | 2.34 |
| Debt / EBITDA | 6.58 | 6.58 | 6.08 | 6.49 | 6.10 | 5.53 | 5.47 | 6.32 | 5.62 | 4.73 | 4.85 |
| Net Debt / Equity | — | 1.89 | 1.88 | 1.90 | 1.87 | 1.68 | 2.04 | 2.60 | 2.43 | 2.30 | 2.28 |
| Net Debt / EBITDA | 6.37 | 6.37 | 6.05 | 6.39 | 6.03 | 5.33 | 5.45 | 6.25 | 5.55 | 4.64 | 4.74 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | 257.63 | — |
| Interest Coverage | 2.58 | 2.58 | 2.59 | 2.48 | 2.74 | 2.65 | 2.60 | 2.66 | 2.69 | 3.02 | 2.90 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.98 | 0.98 | 0.79 | 0.98 | 1.15 | 1.19 | 0.78 | 0.86 | 0.94 | 0.89 | 0.86 |
| Quick Ratio | 0.76 | 0.76 | 0.57 | 0.66 | 0.78 | 0.89 | 0.59 | 0.64 | 0.69 | 0.65 | 0.62 |
| Cash Ratio | 0.17 | 0.17 | 0.03 | 0.08 | 0.05 | 0.21 | 0.01 | 0.05 | 0.06 | 0.07 | 0.09 |
| Asset Turnover | — | 0.21 | 0.21 | 0.22 | 0.27 | 0.25 | 0.22 | 0.25 | 0.28 | 0.29 | 0.30 |
| Inventory Turnover | 4.22 | 4.22 | 5.60 | 4.90 | 5.22 | 7.02 | 6.58 | 6.92 | 6.88 | 6.07 | 6.47 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.9% | 3.2% | 3.1% | 3.4% | 3.0% | 2.7% | 2.7% | 2.4% | 2.9% | 2.8% | 3.0% |
| Payout Ratio | 61.9% | 61.9% | 62.4% | 65.3% | 65.2% | 37.6% | 61.9% | 64.1% | 61.9% | 82.0% | 63.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.6% | 5.0% | 5.0% | 5.2% | 4.5% | 7.2% | 4.3% | 3.8% | 4.7% | 3.5% | 4.8% |
| FCF Yield | — | — | — | — | — | — | — | — | — | 0.3% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.9% | 3.2% | 3.1% | 3.4% | 3.0% | 2.7% | 2.7% | 2.4% | 2.9% | 2.8% | 3.0% |
| Shares Outstanding | — | $301M | $298M | $292M | $290M | $290M | $286M | $284M | $283M | $281M | $279M |
Regulatory concentration in Michigan
With a forward P/E of 20.29, CMS trades at a premium that suggests investors are pricing in consistent rate base growth, though the 2.8% dividend yield, as reported in recent financial data, remains modest compared to broader utility sector averages and fixed-income alternatives.
The current valuation appears to reflect market confidence in the company's ability to navigate the Michigan regulatory environment effectively. However, the elevated P/E relative to historical ranges warrants caution, as any regulatory friction could lead to multiple compression given the utility's sensitivity to interest rate shifts.
Based on the provided quarterly data, the earned ROE has fluctuated between 2.2% and 3.9% over the last ten quarters, which suggests a persistent gap between the company's actual returns and the authorized levels typically expected in a constructive regulatory environment.
This variance in earned ROE may indicate that the company is experiencing regulatory lag, where the timing of rate cases fails to fully capture the rising costs of capital and infrastructure investment. Investors should monitor whether future MPSC decisions provide the necessary headroom to align earned returns more closely with the authorized cost of equity.
As reported in financial statements, the debt-to-capital ratio has remained consistently near 0.65, reflecting a capital structure that is heavily utilized to fund the company's aggressive infrastructure modernization program within its regulated service territory.
While this leverage level is generally consistent with regulated utility norms, the persistent reliance on debt to finance capital expenditures limits the company's financial flexibility. The interest coverage ratio, which has hovered around 2.5x to 2.9x, suggests that the balance sheet remains adequate but sensitive to any sustained increase in borrowing costs.
According to the reported figures, the dividend payout ratio has shown significant volatility, ranging from 46.6% to 82.1% over the last ten quarters, which highlights the tension between returning capital to shareholders and funding the company's substantial ongoing capital expenditure requirements.
The fluctuation in payout levels suggests that dividend sustainability is closely tied to the timing of regulatory rate recovery and the success of O&M cost-reduction initiatives. Investors should interpret these shifts as a sign that the dividend policy is secondary to the company's primary objective of maintaining its regulated asset base.
The most commonly misapplied metric for CMS is the standard P/E ratio, which investors often use to compare the company against broader market indices, failing to account for the fact that utility valuations are primarily anchored to interest rates and regulatory authorized returns.
Using a standard P/E ignores the impact of regulatory accounting and the pass-through nature of fuel costs, which can artificially inflate or deflate earnings. A more appropriate analytical approach would involve focusing on the relationship between the market-to-book ratio and the earned ROE, which better captures the value created by the regulated rate base.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying CMS stock.
CMS Energy Corporation's current P/E ratio is 21.8x. The historical average is 18.4x. This places it at the 83th percentile of its historical range.
CMS Energy Corporation's current EV/EBITDA is 14.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
CMS Energy Corporation's return on equity (ROE) is 11.6%. The historical average is 7.0%.
Based on historical data, CMS Energy Corporation is trading at a P/E of 21.8x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
CMS Energy Corporation's current dividend yield is 2.86% with a payout ratio of 61.9%.
CMS Energy Corporation has 60.9% gross margin and 20.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
CMS Energy Corporation's Debt/EBITDA ratio is 6.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.