CMS changes
Pick any two versions below to diff them.
- Price
- $69.22
- Discount category
- Close to intrinsic value
- Next earnings
- Feb 4, 2027
- Next earnings is estimate
- Yes
- Company name
- added: CMS Energy
- Sector
- added: Electric and gas utility
- About
- added: CMS Energy Corporation (CMS Energy) is based in Jackson, Michigan. Its main business is Consumers Energy, an electric and gas utility in Michigan. Consumers Energy generates, buys, distributes and sells electricity, and it also runs a natural gas utility. The Michigan Public Service Commission (MPSC) sets its rates. NorthStar Clean Energy is the non-utility business, and CMS Energy is selling its renewable projects outside Michigan. Operating revenue was $2,183 million in Q3 2026 and $6,742 million for nine months. The common stock trades on the NYSE in US dollars. CMS Energy files 10-K and 10-Q reports.
- Thesis
- added: The price of CMS Energy depends on whether Michigan rate orders let it earn a fair return on a large investment plan without too many new shares. Consumers Energy plans capital spending of $24.1 billion through 2030, and its 2026 integrated resource plan shows about $27 billion of capital opportunity. CMS Energy guides adjusted EPS of $4.08 to $4.17 for 2027 and long-term growth of 6% to 8% a year. Debt and finance leases were $19,728 million at September 30, 2026, and a new program can sell up to $3 billion of common stock. For the price to hold or rise, three things must be true. The MPSC must give a fair result in the electric rate case, with a final order by April 2027, after it approved $139 million of the $232 million gas increase that Consumers Energy asked for in October 2026. The exit from NorthStar renewables must finish by the end of 2026 with no further large loss. New load from data centers and factories must arrive as planned. The Q4 2026 report, expected in early February 2027, is the next test. If rate orders are weak or interest rates rise, the price can fall.
- Risks
- added: Rate orders can be lower than requested. In October 2026 the MPSC approved $139 million of a $232 million gas request, at a return on equity of 9.80%. The electric case asks for $468 million at 10.25%, and the order is due by April 2027. The investment plan needs much new capital. Debt and finance leases were $19,728 million at September 30, 2026, and the new equity program can sell up to $3 billion of shares, which dilutes shareholders. Higher interest rates raise costs and lower the value of utility shares. Interest charges were $627 million for nine months of 2026, against $588 million. The NorthStar exit can bring more losses. Asset impairment and restructuring cost $1.09 per share in the first nine months of 2026, and some project sales are not yet signed. Demand from data centers may not arrive as expected. The 10-Q names this as a risk to the plan.
- Balance sheet
- added: Cash: $451M Debt: $20.2B Net debt: $19.8B Undrawn credit line: $2.2B Debt due within 12 months: $1.3B At September 30, 2026, CMS Energy had debt and finance leases of $19,728 million and securitization debt of $479 million, so debt in the figures is $20,207 million. Of this, $1,258 million is the current portion of long-term debt and finance leases. Cash and cash equivalents were $451 million, and restricted cash was $102 million. Undrawn revolving credit was $736 million at CMS Energy, $74 million at NorthStar Clean Energy and $1.4 billion at Consumers Energy. On November 3, 2026, CMS Energy sold $1,000 million of junior subordinated notes due 2057. The quarterly dividend was $0.57 per share in Q3 2026. As of Sep 30, 2026.
- Checkpoints
- added: Feb 4, 2027 (estimate): Q4 2026 results and 2027 outlook. Pending. Watch: 2026 adjusted EPS is in the guided range of $3.83 to $3.90 and the 2027 range of $4.08 to $4.17 holds, and this passes; a miss or a lower 2027 range fails. Apr 2027 (estimate): Electric rate case order. Pending. Watch: The MPSC approves most of the $468 million request at a return on equity of 9.90% or more, and this passes; a much smaller increase or a lower return fails.
- Recent events
- added: Nov 3, 2026: CMS Energy sold $1,000 million of 6.800% fixed-to-fixed reset rate junior subordinated notes due 2057. Oct 27, 2026: CMS Energy reported Q3 2026 results. Reported EPS was $0.39 and adjusted EPS was $1.44, against $0.93. Asset impairment and restructuring at NorthStar Clean Energy cost $1.08 per share. It reaffirmed 2026 adjusted EPS guidance of $3.83 to $3.90 and 2027 guidance of $4.08 to $4.17. Oct 15, 2026: The MPSC approved a gas rate increase of $139 million a year for Consumers Energy, based on a return on equity of 9.80%, from November 2026. Consumers Energy had asked for $232 million. Sep 3, 2026: Consumers Energy filed its 2026 integrated resource plan with the MPSC. The plan adds 15.8 GW of clean energy and 4.1 GW of battery storage by 2040, and 1.4 GW of simple cycle gas generation by 2031. Jun 3, 2026: Rejji Hayes retired as chief financial officer, and Srikanth Maddipati became executive vice president and chief financial officer of CMS Energy and Consumers Energy.