Latest Ratios: P/E Ratio 6.0x · EV/EBITDA 8.6x · 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 | $6.3B | $6.6B | $6.7B | $7.2B | $6.3B | $7.7B | $8.2B | $7.4B | $6.7B | — | — |
| Enterprise Value | $24.7B | $24.9B | $23.1B | $22.6B | $20.5B | $19.7B | $20.5B | $20.6B | $18.3B | — | — |
| P/E Ratio → | 5.98 | 6.22 | 6.70 | 8.16 | 7.64 | 5.67 | 10.79 | 10.96 | 10.22 | — | — |
| P/S Ratio | 0.74 | 0.77 | 0.89 | 0.96 | 0.73 | 1.04 | 1.27 | 1.12 | 0.98 | — | — |
| P/B Ratio | 0.65 | 0.68 | 0.76 | 0.88 | 0.83 | 1.06 | 1.34 | 1.47 | 1.40 | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 2.84 | 2.95 | 2.81 | 3.10 | 7.38 | 4.21 | 6.39 | 4.16 | 3.94 | — | — |
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 | — | 2.92 | 3.08 | 3.03 | 2.38 | 2.69 | 3.20 | 3.11 | 2.67 | — | — |
| EV / EBITDA | 8.57 | 8.66 | 8.49 | 9.36 | 8.72 | 8.72 | 9.04 | 9.79 | 8.75 | — | — |
| EV / EBIT | 14.28 | 12.24 | 12.64 | 14.15 | 14.42 | 14.89 | 15.64 | 16.83 | 14.88 | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
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 | 10.5% | 10.0% | 9.4% | 8.1% | 8.6% | 6.7% | 5.7% | 5.9% | 6.1% | — | — |
| 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 | 16.7% | 16.1% | 14.9% | 12.3% | 13.1% | 17.6% | 9.3% | 9.1% | 9.8% | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 10.5% | 10.0% | 9.4% | 8.1% | 8.6% | 6.7% | 5.7% | 5.9% | 6.1% | — | — |
| Shares Outstanding | — | $301M | $298M | $292M | $290M | $290M | $286M | $284M | $283M | $281M | $279M |
Regulatory capital recovery lag
According to current market data, CMSA trades at a forward P/E of 5.36, which appears significantly compressed compared to broader utility sector averages, suggesting that investors are pricing in substantial regulatory risk or potential headwinds regarding the company's long-term earnings growth trajectory within the Michigan jurisdiction.
The low P/E multiple indicates that the market may be skeptical of the company's ability to sustain its historical EPS growth targets amidst a heavy capital expenditure cycle. Investors should monitor whether this valuation discount persists as a permanent feature of the stock or if it represents a temporary mispricing of the company's regulated asset base.
Based on the reported quarterly figures, CMSA's earned ROE has fluctuated between 2.2% and 3.9% over the last ten quarters, which appears to be significantly below the typical authorized ROE levels for regulated utilities, potentially indicating persistent regulatory lag or operational inefficiencies in cost recovery.
The consistent gap between earned returns and standard industry expectations warrants further investigation into the MPSC's rate case outcomes and the company's ability to manage its cost structure. If this trend continues, it may suggest that the utility is struggling to capture the full value of its infrastructure investments in a timely manner.
As reported in financial statements, the company maintains a debt-to-capital ratio consistently near 0.65 to 0.67, which, when coupled with interest coverage ratios hovering around 2.5x, suggests a strained balance sheet that may limit financial flexibility during periods of high capital intensity.
The reliance on debt to fund the ongoing transition to renewable generation assets increases the company's sensitivity to interest rate fluctuations. Analysts should scrutinize whether the current leverage profile provides sufficient cushion to maintain credit ratings without necessitating further equity dilution.
Based on the provided data, the dividend payout ratio has shown significant volatility, reaching as high as 82.1% in 2025Q2, which indicates that the company's ability to fund its dividend from internal cash flows is increasingly pressured by its aggressive multi-billion dollar capital expenditure program.
While the dividend yield of 10.6% may appear attractive, the high payout ratio suggests that the dividend is not currently supported by robust free cash flow generation. Investors should monitor whether management prioritizes dividend growth over the necessary grid modernization investments required by the regulatory compact.
As noted in financial analysis literature, the P/E ratio is frequently misapplied to utilities like CMSA, as it fails to account for the non-cash earnings components such as AFUDC and the impact of regulatory assets that distort traditional net income metrics used in valuation.
Investors should instead focus on the Price-to-Rate-Base or EV/Rate-Base metrics, which provide a more accurate reflection of the company's underlying earnings power and regulatory growth potential. Relying solely on P/E obscures the reality that utility earnings are largely a function of authorized returns on invested capital rather than organic volume growth.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying CMSA stock.
CMS Energy Corporation 5.6% JRSUB NT 78's current P/E ratio is 6.0x. The historical average is 8.3x. This places it at the 13th percentile of its historical range.
CMS Energy Corporation 5.6% JRSUB NT 78's current EV/EBITDA is 8.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.9x.
CMS Energy Corporation 5.6% JRSUB NT 78's return on equity (ROE) is 11.6%. The historical average is 7.0%.
Based on historical data, CMS Energy Corporation 5.6% JRSUB NT 78 is trading at a P/E of 6.0x. This is at the 13th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
CMS Energy Corporation 5.6% JRSUB NT 78's current dividend yield is 10.45% with a payout ratio of 61.9%.
CMS Energy Corporation 5.6% JRSUB NT 78 has 60.9% gross margin and 20.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
CMS Energy Corporation 5.6% JRSUB NT 78's Debt/EBITDA ratio is 6.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.