CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD)
Valuation Overview•Is CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Moderate quality score of 48/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral with steady expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
CMSD demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is facing top-line contraction (-0.2% 3Y CAGR) paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 19.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.7B | +13.6% | -0.2% | +5.9% | +2.8% | |
| EBITDA | $902.0M | — | +6.4% | — | — | |
| Net Income | $340.0M | +6.8% | +8.6% | — | +7.4% | |
| EPS (Diluted) | $1.10 | +6.0% | +7.4% | +6.0% | +6.4% | |
| Free Cash Flow | -$334.0M | -145.2% | -1.5% | -9.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 35.2% | 25.0% | 23.0% | 24.5% |
| Operating Margin | 19.5% | 18.9% | 17.3% | 18.1% |
| Net Margin | 12.5% | 12.6% | 13.2% | 11.3% |
| FCF Margin | 20.3% | -13.1% | -12.1% | -8.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.09 | $1.10 | +0.9% | ||
| Q1'26 | $0.93 | $0.95 | +1.8% | ||
| Q4'25 | $0.86 | $0.92 | +7.2% | ||
| Q3'25 | $0.68 | $0.67 | -1.2% | ||
| Q2'25 | $1.01 | $1.02 | +1.0% | ||
| Q4'23 | — | $1.05 | — | ||
| Q3'23 | — | $0.60 | — | ||
| Q2'23 | — | $0.70 | — |
Total return is +4.5% (1Y), lagging the benchmark by -16.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -3.5% | -10.9% | — |
| 1Y | +4.5% | -16.3% | +6.5% |
| 3YCAGR | +2.9% | -16.4% | +18.2% |
| 5YCAGR | +1.0% | -10.6% | +26.3% |
| 10YCAGR | +2.7% | -11.0% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) valuation, health, and returns.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +300.0% upside to DCF intrinsic value of $87.08)
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 has multiple valuation anchors: DCF Intrinsic Value: $87.08 | Peer Relative Fair Value: $85.51. A convergence of these signals offers higher conviction.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 displays fair financial health with a composite quality score of 48/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 4.9%.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 pays a 10.1% dividend yield, covered by a 62% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079's current growth trajectory is Accelerating. The company achieved +13.6% 1Y revenue growth and +6.0% 1Y EPS growth, compared to its 3Y revenue CAGR of -0.2%.
Wall Street consensus is Hold based on 0 analysts, beating EPS expectations in 80% of recent quarters with a 3-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 include: -74.9% 1-year max drawdown. Volatility risk is characterized by a beta of 0.71x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.