Latest Ratios: P/E Ratio 6.2x · EV/EBITDA 8.8x · ROE 11.6%. (2009–2025 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 | $7.0B | $6.9B | $7.3B | $6.5B | $7.8B | $8.0B | $7.8B | — | — | — |
| Enterprise Value | $25.0B | $25.3B | $23.4B | $22.7B | $20.7B | $19.8B | $20.4B | $20.9B | — | — | — |
| P/E Ratio → | 6.17 | 6.56 | 6.95 | 8.30 | 7.86 | 5.77 | 10.57 | 11.43 | — | — | — |
| P/S Ratio | 0.78 | 0.81 | 0.92 | 0.98 | 0.76 | 1.06 | 1.25 | 1.13 | — | — | — |
| P/B Ratio | 0.67 | 0.72 | 0.79 | 0.90 | 0.86 | 1.08 | 1.31 | 1.54 | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 2.98 | 3.11 | 2.91 | 3.15 | 7.60 | 4.28 | 6.26 | 4.34 | — | — | — |
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 | — | 2.96 | 3.11 | 3.04 | 2.40 | 2.71 | 3.17 | 3.05 | — | — | — |
| EV / EBITDA | 8.82 | 8.92 | 8.58 | 9.41 | 8.80 | 8.78 | 8.96 | 9.37 | — | — | — |
| EV / EBIT | 14.46 | 13.20 | 12.77 | 14.22 | 14.55 | 14.99 | 15.50 | 15.50 | — | — | — |
| 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 | 26.2% | 26.2% | 26.2% | 22.5% | 19.0% | 20.9% | 24.7% | 23.0% | 21.3% | 24.6% | 36.8% |
| Operating Margin | 20.2% | 20.2% | 19.8% | 16.6% | 14.2% | 15.6% | 19.2% | 18.1% | 16.9% | 20.3% | 19.6% |
| Net Profit Margin | 12.5% | 12.5% | 13.3% | 11.9% | 9.7% | 18.5% | 11.8% | 9.9% | 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% | 5.4% | 5.6% | 7.0% | 6.9% |
| ROCE | 4.9% | 4.9% | 4.7% | 4.2% | 4.5% | 4.3% | 4.8% | 5.4% | 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 | 6.68 | 6.68 | 6.08 | 6.48 | 6.10 | 5.53 | 5.47 | 5.96 | 5.62 | 4.73 | 5.16 |
| Net Debt / Equity | — | 1.88 | 1.88 | 1.90 | 1.87 | 1.68 | 2.04 | 2.60 | 2.42 | 2.30 | 2.28 |
| Net Debt / EBITDA | 6.46 | 6.46 | 6.05 | 6.39 | 6.03 | 5.33 | 5.44 | 5.89 | 5.54 | 4.64 | 5.03 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | 257.20 | — |
| Interest Coverage | 2.42 | 2.42 | 2.59 | 2.48 | 2.74 | 2.65 | 2.60 | 2.60 | 2.69 | 3.02 | 3.00 |
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 | 0.05 | 0.09 | 0.05 | 0.21 | 0.02 | 0.06 | 0.07 | 0.07 | 0.10 |
| Asset Turnover | — | 0.21 | 0.21 | 0.22 | 0.27 | 0.25 | 0.22 | 0.26 | 0.28 | 0.29 | 0.30 |
| Inventory Turnover | 7.96 | 7.96 | 7.21 | 6.16 | 6.23 | 8.69 | 8.39 | 8.72 | 8.32 | 7.38 | 6.46 |
| 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% | 9.5% | 9.1% | 7.9% | 8.4% | 6.5% | 5.8% | 5.6% | — | — | — |
| 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 | 16.2% | 15.2% | 14.4% | 12.1% | 12.7% | 17.3% | 9.5% | 8.8% | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 10.1% | 9.5% | 9.1% | 7.9% | 8.4% | 6.5% | 5.8% | 5.6% | — | — | — |
| Shares Outstanding | — | $300M | $298M | $292M | $290M | $290M | $286M | $284M | $283M | $281M | $279M |
Regulatory lag and leverage
According to recent market data, the 10.1% dividend yield significantly exceeds the broader utility sector average, suggesting that investors are pricing in heightened risk regarding the sustainability of payouts or potential regulatory headwinds impacting the company's ability to maintain its historical dividend growth trajectory in Michigan.
The current P/E of 6.17 appears to reflect a deep discount compared to peers, which may indicate that the market is discounting the company's earnings power due to the high debt load or the specific risks associated with the 2079 notes. Investors should monitor whether this valuation gap represents a mispricing of the regulatory compact or a rational response to the company's aggressive capital expenditure cycle.
As reported in financial statements, the company's earned ROE has consistently hovered between 2.2% and 3.9% over the last ten quarters, which appears significantly lower than typical authorized ROEs for regulated utilities, suggesting a persistent regulatory lag or structural inefficiencies in cost recovery mechanisms within the Michigan jurisdiction.
This persistent gap between earned and likely authorized returns warrants further investigation into whether the company is failing to capture the full value of its rate base investments. The inability to consistently drive ROE higher may indicate that the MPSC is keeping a tight lid on allowed returns, limiting the company's ability to generate excess value for shareholders.
Based on the provided quarterly figures, the debt-to-capital ratio has remained stubbornly between 0.65 and 0.67, which, when combined with the anomalous reported D/E of 1.95, suggests a highly leveraged balance sheet that may limit the company's financial flexibility during periods of rising interest rates.
The reliance on junior subordinated notes like the 2079 issuance indicates a strategy of using hybrid capital to manage credit metrics, yet the interest coverage ratio, which has fluctuated between 1.89x and 2.89x, remains a point of concern. Analysts should monitor whether this leverage profile will force the company to seek further equity dilution to maintain its investment-grade credit rating.
As indicated by the quarterly data, the dividend payout ratio has shown significant volatility, ranging from 46.6% to 82.1%, which suggests that the company's commitment to dividend growth may be competing directly with the massive capital requirements needed to modernize the grid and transition to renewable energy sources.
While the dividend is currently supported by operating cash flows, the high payout ratio in certain quarters leaves little margin for error if regulatory outcomes turn unfavorable. Investors should be wary of the potential for a dividend freeze if the company's cash flow remains constrained by its aggressive capital expenditure program.
The most commonly misapplied ratio for this utility is the standard P/E multiple, which fails to account for the heavy influence of regulatory accounting adjustments and the pass-through nature of fuel costs that artificially inflate or deflate earnings, thereby obscuring the true cash-generating capacity of the regulated business.
Instead of relying on P/E, analysts should focus on the Price-to-Rate-Base or EV-to-Regulated-Asset-Base, as these metrics better capture the underlying value of the infrastructure that the MPSC allows the company to earn a return on. Using standard industrial valuation multiples ignores the fundamental reality that utility earnings are a function of regulatory policy rather than competitive market share gains.
Includes 30+ ratios · 17 years · Updated daily
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Quick answers to the most common questions about buying CMSD stock.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079's current P/E ratio is 6.2x. The historical average is 8.2x. This places it at the 14th percentile of its historical range.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079's current EV/EBITDA is 8.8x. 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% Junior Subordinated Notes due 2079's return on equity (ROE) is 11.6%. The historical average is 14.0%.
Based on historical data, CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 is trading at a P/E of 6.2x. This is at the 14th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079's current dividend yield is 10.14% with a payout ratio of 61.9%.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 has 26.2% gross margin and 20.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079's Debt/EBITDA ratio is 6.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.