Latest Ratios: P/E Ratio 6.2x · EV/EBITDA 8.7x · 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 | $6.7B | $6.8B | $6.8B | $7.2B | $6.4B | $7.7B | $8.1B | $7.6B | $6.8B | — | — |
| Enterprise Value | $25.0B | $25.1B | $23.3B | $22.7B | $20.6B | $19.8B | $20.5B | $20.8B | $18.4B | — | — |
| P/E Ratio → | 6.21 | 6.42 | 6.89 | 8.22 | 7.78 | 5.74 | 10.76 | 11.20 | 10.37 | — | — |
| P/S Ratio | 0.79 | 0.80 | 0.91 | 0.97 | 0.75 | 1.06 | 1.27 | 1.15 | 0.99 | — | — |
| P/B Ratio | 0.68 | 0.70 | 0.78 | 0.89 | 0.85 | 1.08 | 1.34 | 1.51 | 1.42 | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 3.01 | 3.05 | 2.89 | 3.13 | 7.52 | 4.26 | 6.37 | 4.25 | 4.00 | — | — |
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 | — | 2.94 | 3.10 | 3.04 | 2.40 | 2.70 | 3.20 | 3.13 | 2.68 | — | — |
| EV / EBITDA | 8.70 | 8.74 | 8.55 | 9.38 | 8.77 | 8.76 | 9.03 | 9.87 | 8.80 | — | — |
| EV / EBIT | 14.50 | 12.34 | 12.74 | 14.19 | 14.50 | 14.96 | 15.62 | 16.96 | 14.96 | — | — |
| 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 | 10.1% | 9.7% | 9.2% | 8.0% | 8.5% | 6.6% | 5.7% | 5.7% | 6.0% | — | — |
| 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 | 16.1% | 15.6% | 14.5% | 12.2% | 12.8% | 17.4% | 9.3% | 8.9% | 9.6% | — | — |
| 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 | 10.1% | 9.7% | 9.2% | 8.0% | 8.5% | 6.6% | 5.7% | 5.7% | 6.0% | — | — |
| Shares Outstanding | — | $301M | $298M | $292M | $290M | $290M | $286M | $284M | $283M | $281M | $279M |
Regulatory lag and capital intensity
Based on the reported 10.1% dividend yield and a forward P/E of 5.66, CMSC appears to be priced as a high-yield bond proxy, reflecting market skepticism regarding the company's ability to sustain earnings growth amidst its aggressive, debt-funded capital expenditure program.
The current valuation suggests that investors are prioritizing immediate income over long-term capital appreciation, likely due to the regulatory uncertainty inherent in Michigan's energy transition. The low P/E multiple may indicate that the market is discounting the company's future rate base expansion, fearing that regulatory lag will prevent the company from earning its authorized return on equity.
As reported in the quarterly financial data, the company's ROE has fluctuated between 2.2% and 3.9% over the last ten quarters, which suggests a significant gap between actual performance and the typical authorized returns required to support a utility's long-term infrastructure investment cycle.
This persistent under-earning relative to industry standards may indicate that the company is struggling with regulatory lag, where the costs of new infrastructure are incurred well before they are reflected in customer rates. Investors should monitor whether future rate case outcomes can bridge this gap, as the current ROE levels appear insufficient to justify the company's heavy reliance on external financing.
According to the provided financial tables, the dividend payout ratio has shown significant volatility, peaking at 82.1% in 2025Q2, which indicates that the company's commitment to shareholder returns is increasingly competing with the massive cash requirements of its ongoing clean energy infrastructure projects.
While the dividend remains a primary return driver, the high payout ratio in periods of lower profitability suggests that the company is effectively funding its dividend through external debt rather than organic cash flow. This strategy warrants further investigation, as it may limit the company's financial flexibility if regulatory outcomes in Michigan become less constructive.
Based on the reported debt-to-capital ratio of 0.65 to 0.67, the company's balance sheet appears strained, which is further complicated by the anomalous 1.95% debt-to-equity figure that warrants immediate verification to ensure it does not mask significant off-balance-sheet liabilities or financing risks.
The consistent debt-to-capital levels suggest that the company is operating near the upper limit of its regulatory-allowed capital structure, leaving little room for error in a rising interest rate environment. The combination of high leverage and negative free cash flow implies that the company's credit quality may be vulnerable to any unexpected shifts in the regulatory compact.
The most commonly misapplied metric for CMSC is the standard P/E ratio, which obscures the company's true earnings power by failing to account for the lumpy nature of regulatory rate case timing and the significant non-cash depreciation charges inherent in a utility's capital-intensive business model.
Investors should instead focus on the relationship between the authorized ROE and the rate base growth, as these are the true drivers of long-term value. Using a standard P/E ratio to compare CMSC against non-regulated industrials is fundamentally flawed, as it ignores the regulatory protections and constraints that define the utility's unique economic reality.
Includes 30+ ratios · 30 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying CMSC stock.
CMS Energy Corporation 5.875% J's current P/E ratio is 6.2x. The historical average is 8.4x. This places it at the 13th percentile of its historical range.
CMS Energy Corporation 5.875% J's current EV/EBITDA is 8.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.0x.
CMS Energy Corporation 5.875% J's return on equity (ROE) is 11.6%. The historical average is 7.0%.
Based on historical data, CMS Energy Corporation 5.875% J is trading at a P/E of 6.2x. 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 5.875% J's current dividend yield is 10.06% with a payout ratio of 61.9%.
CMS Energy Corporation 5.875% J has 60.9% gross margin and 20.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
CMS Energy Corporation 5.875% J's Debt/EBITDA ratio is 6.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.