CMS Energy Corporation 5.875% J (CMSC) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
CMS Energy Corporation 5.875% J (CMSC) trades at $21.30 with AI Score 40/100 (Grade C). CMS Energy Corporation engages in electric and natural gas activities, operating through its Electric Utility, Gas Utility, and NorthStar Clean… Market cap: $6.53B, Sector: Utilities.
Price as of Aug 20, 2026 · Last analyzed: May 9, 2026Analyst Coverage for CMSC: CMSC does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates CMSC against Utilities peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
CMSC: 2/3 scored disciplines lean bearish. Dominant signal: Ken Griffin bearish.
How is this calculated? →Why this analysis is different
- A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
CMS Energy Corporation 5.875% J (CMSC) Utility Operations & Dividend Profile
CMS Energy Corporation, founded in 1987, provides electric and natural gas services through its regulated utility segments and clean energy initiatives. With a market capitalization of $6.53B and a dividend yield of 3.06%, the company focuses on serving Michigan with electricity and natural gas.
What Is the Investment Thesis for CMSC?
CMS Energy Corporation presents a compelling investment case centered on its regulated utility operations and growing clean energy segment. The company's stable revenue streams from its Electric and Gas Utility segments, coupled with its strategic investments in renewable energy through NorthStar Clean Energy, offer a balanced approach to growth and stability. With a dividend yield of 3.06% and a beta of 0.46, CMSC provides a relatively stable investment opportunity within the utilities sector. However, investors should be aware of the company's relatively low ROE of 2.8%, which suggests potential areas for improvement in operational efficiency and profitability. Upcoming regulatory changes and infrastructure investments could serve as catalysts for growth, while potential economic downturns and fluctuating energy prices pose ongoing risks. The company's ability to enhance its operational efficiency and capitalize on renewable energy opportunities will be critical in driving long-term shareholder value.
Based on FMP financials and quantitative analysis
CMSC Key Highlights
Market capitalization of $6.53B, reflecting its significant presence in the utilities sector.
- P/E ratio of 20.8, indicating investor valuation relative to earnings.
- Profit margin of 12.5%, demonstrating its ability to generate profit from revenue.
- Gross margin of 64.6%, showcasing efficiency in production and service delivery.
- Dividend yield of 3.06%, providing a steady income stream for investors.
Who Are CMSC's Competitors?
CMSC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| FTS Fortis Inc. | $56.24 | +0.02% | $28.6B | 46 |
| ES Eversource Energy | $72.15 | +0.22% | $27.1B | 57 |
| EIX Edison International | $75.30 | +2.54% | $29.0B | 66 |
| EBR-B Centrais Elétricas Brasileiras S.A. - Eletrobrás | $11.68 | +0.69% | $24.8B | — |
| AQNB Algonquin Power & Utilities Corp. | $26.15 | +0.38% | $19.2B | 46 |
| CMSD CMS Energy Corporation | $21.15 | +0.28% | $6.48B | 52 |
| EGIEY Engie Brasil Energia S.A. | $5.94 | +10.20% | $6.79B | 54 |
| POR Portland General Electric Company | $50.17 | +0.06% | $5.81B | 52 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CMSC's Key Strengths?
Stable revenue streams from regulated utility operations.
- Strong geographic presence in Michigan.
- Growing investments in renewable energy.
- Essential service provider status.
What Are CMSC's Weaknesses?
Relatively low ROE compared to peers.
- Dependence on regulatory approvals.
- Exposure to fluctuating energy prices.
- Potential for operational inefficiencies.
What Could Drive CMSC Stock Higher?
Regulatory approvals for infrastructure investments.
- Completion of new renewable energy projects.
- Implementation of energy efficiency programs.
- Potential acquisitions of smaller utilities.
What Are the Key Risks for CMSC?
Financial-distress signal — its Altman Z-Score of 0.57 sits in the distress zone (elevated bankruptcy risk).
- Insider selling — insiders were net sellers of roughly $1.5M recently.
- Economic downturns affecting energy demand.
- Fluctuations in energy prices.
- Changes in government regulations.
- Cybersecurity threats to energy infrastructure.
What Are the Growth Opportunities for CMSC?
- Expansion of Renewable Energy Portfolio: CMS Energy can expand its NorthStar Clean Energy segment by investing in new renewable energy projects, such as solar and wind farms. This aligns with the increasing demand for clean energy and government incentives promoting renewable energy development. The renewable energy market is projected to grow significantly, offering substantial opportunities for CMS Energy to increase its revenue and market share over the next 5-10 years.
- Infrastructure Modernization: CMS Energy can invest in modernizing its existing infrastructure, including upgrading transmission lines and distribution networks. This will improve the reliability and efficiency of its services, reducing outages and improving customer satisfaction. Government initiatives and regulatory support for infrastructure upgrades provide a favorable environment for these investments, with potential benefits materializing within 3-5 years.
- Smart Grid Technologies: Implementing smart grid technologies can enhance CMS Energy's operational efficiency and improve grid management. Smart grids enable real-time monitoring and control of energy flow, reducing energy waste and improving grid resilience. The smart grid market is expected to grow as utilities seek to improve efficiency and reliability, offering CMS Energy a competitive advantage over the next 3-7 years.
- Customer Engagement and Energy Efficiency Programs: CMS Energy can implement customer engagement programs to promote energy efficiency and reduce energy consumption. These programs can include incentives for customers to adopt energy-efficient appliances and practices, reducing overall demand and improving grid stability. These initiatives can lead to cost savings for customers and improved operational efficiency for CMS Energy within 1-3 years.
- Strategic Acquisitions: CMS Energy can pursue strategic acquisitions of smaller utilities or renewable energy companies to expand its geographic footprint and diversify its energy portfolio. Acquisitions can provide access to new markets and technologies, enhancing CMS Energy's competitive position and growth prospects. The utility sector is consolidating, creating opportunities for CMS Energy to acquire valuable assets and expand its operations over the next 3-5 years.
What Are CMSC's Competitive Advantages?
- Regulated utility operations provide a stable and predictable revenue stream.
- Geographic concentration in Michigan creates a strong regional presence.
- Investments in renewable energy offer a competitive advantage in the evolving energy landscape.
- Essential service provider status ensures consistent demand for electricity and natural gas.
What Does CMSC Do?
CMS Energy Corporation, established in 1987, is headquartered in Jackson, Michigan, and operates as a provider of electric and natural gas services. The company is structured into three primary business segments: Electric Utility, Gas Utility, and NorthStar Clean Energy. The Electric Utility segment is responsible for the generation, purchase, distribution, and sale of electricity to residential, commercial, and industrial customers. The Gas Utility segment focuses on the purchase, transmission, storage, distribution, and sale of natural gas. The NorthStar Clean Energy segment develops and operates renewable generation facilities and markets independent power production. CMS Energy's operations are primarily concentrated in Michigan, where it serves a significant customer base with essential energy services. The company's regulated utility model provides a stable revenue stream, while its investments in renewable energy through NorthStar Clean Energy reflect a commitment to sustainable energy solutions. CMS Energy's strategic focus on regulated utilities and clean energy positions it to meet the evolving energy needs of its customers and contribute to a cleaner energy future. With 8,356 employees, CMS Energy continues to play a crucial role in Michigan's energy infrastructure.
What Products and Services Does CMSC Offer?
- Generates electricity through various sources.
- Purchases electricity from other providers.
- Distributes electricity to residential, commercial, and industrial customers.
- Sells electricity to end-users.
- Purchases natural gas from suppliers.
- Transmits natural gas through pipelines.
- Stores natural gas for future use.
- Distributes natural gas to customers.
How Does CMSC Make Money?
- Generates revenue through the sale of electricity to customers.
- Generates revenue through the sale of natural gas to customers.
- Operates regulated utility businesses, ensuring stable revenue streams.
- Develops and operates renewable energy projects for independent power production.
What Industry Does CMSC Operate In?
CMS Energy Corporation operates within the regulated electric and gas utility industry, which is characterized by stable demand and significant regulatory oversight. The industry is undergoing a transition towards cleaner energy sources, driven by environmental concerns and government policies. CMS Energy's NorthStar Clean Energy segment positions it to capitalize on this trend. Competitors like Fortis Inc. (FTS) and Eversource Energy (ES) also operate in the regulated utility space, focusing on providing reliable energy services. The industry is expected to see continued investment in infrastructure and renewable energy projects.
Who Are CMSC's Key Customers?
- Residential customers who use electricity and natural gas for heating, cooling, and other household needs.
- Commercial customers, including businesses and organizations that require electricity and natural gas for their operations.
- Industrial customers who use large amounts of electricity and natural gas for manufacturing and production processes.
Company Profile
CMS Energy Corporation 5.875% J operates in the Regulated Electric industry within the Utilities sector. It is headquartered in Jackson, US. The company is led by CEO Garrick J. Rochow. CMSC has traded publicly since 2018.
CMS Energy Corporation 5.875% J Financial Trajectory
CMS Energy Corporation 5.875% J (CMSC) reported $1.83B in revenue for Q2 2026, a decline of 33.0% compared to the prior quarter. The company recorded net income of $120.0M, with diluted EPS of $0.40. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Utilities. Across the four most recent quarters, CMSC averaged $0.85 in diluted EPS.
How CMS Energy Corporation 5.875% J Is Valued
CMS Energy Corporation 5.875% J carries a market capitalization of $6.53B, placing it in the mid-cap category. Relative to its peer group, CMSC's quantitative score of 40/100 is below the peer average of 54/100.
Key Financial Metrics
Return on equity for CMS Energy Corporation 5.875% J stands at 12.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.7%, showing how much profit it generates from its asset base. CMSC trades at a trailing price-to-earnings ratio of 20.77, roughly in line with the Utilities sector average of ~19x. Its free cash flow yield is -8.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.84 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 4.8%, the inverse of the P/E and a quick read on earnings relative to price.
Financial Health
CMS Energy Corporation 5.875% J's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.57 places it in the distress zone, a signal of elevated financial risk.
Earnings Track Record
CMS Energy Corporation 5.875% J has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 3.7% above estimates on average.
Forward Outlook
Wall Street analysts project CMS Energy Corporation 5.875% J revenue of about $8.63B for fiscal 2026, with EPS near $3.87.
Insider Activity
The most recent 12 insider filings for CMS Energy Corporation 5.875% J break down as 12 sales and 0 purchases. On net that is roughly 39K shares disposed (about $1.5M), a signal worth weighing alongside the fundamentals.
CMSC Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Stable revenue streams from regulated utility operations.
- Strong geographic presence in Michigan.
- Growing investments in renewable energy.
- Essential service provider status.
Bear Case
- Relatively low ROE compared to peers.
- Dependence on regulatory approvals.
- Exposure to fluctuating energy prices.
- Potential for operational inefficiencies.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · August 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.83B | $120M | $0.40 |
| Q1 2026 | $2.73B | $340M | $1.13 |
| Q4 2025 | $2.23B | $289M | $0.94 |
| Q3 2025 | $2.02B | $277M | $0.92 |
Based on FMP financials and quantitative analysis
CMSC Latest News
No recent news available for CMSC.
CMSC Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CMSC.
Price Targets
Wall Street price target analysis for CMSC.
CMSC MoonshotScore
What does this score mean?
The MoonshotScore rates CMSC 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: None
None
Unknown
Track Record: Unknown
CMSC Utilities Stock FAQ
What does the AI Score mean for CMSC?
CMSC holds an AI Score of 40/100 (Grade: C). This is an educational research signal, not a buy or sell recommendation. CMS Energy Corporation engages in electric and natural gas activities, operating through its Electric Utility, Gas Utility, and NorthStar Clean Energy segments. The company focuses on …
What does CMS Energy Corporation 5.875% J do?
CMS Energy Corporation operates as a regulated electric and natural gas utility, primarily serving customers in Michigan. The company generates, purchases, distributes, and sells electricity and natural gas. Its business is divided into Electric Utility, Gas Utility, and NorthStar Clean Energy segments. The NorthStar Clean Energy segment focuses on renewable energy projects, contributing to a cleaner energy mix.
What do analysts say about CMSC stock?
Analyst consensus on CMSC stock reflects a generally stable outlook, considering its position as a regulated utility. Key valuation metrics such as the P/E ratio of 20.8 and a dividend yield of 3.06% are closely monitored. Growth considerations include the expansion of its renewable energy portfolio and infrastructure modernization efforts.
What are the main risks for CMSC?
CMS Energy faces several key risks, including economic downturns that could reduce energy demand, fluctuations in energy prices affecting profitability, and potential changes in government regulations impacting operations. Cybersecurity threats to energy infrastructure also pose a significant risk.
What are the key factors to evaluate for CMSC?
CMS Energy Corporation 5.875% J (CMSC) holds an AI score of 40/100 (low). P/E: 20.8x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does CMSC data refresh on this page?
CMSC's price was last updated on Aug 20, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven CMSC's recent stock price performance?
CMS Energy Corporation 5.875% J (CMSC) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Stable revenue streams from regulated utility operations. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider CMSC overvalued or undervalued right now?
CMS Energy Corporation 5.875% J (CMSC) trades at 20.8x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research CMSC before investing?
Before investing in CMS Energy Corporation 5.875% J (CMSC), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available financial data and company descriptions.
- Future performance is subject to market conditions and company-specific factors.