CMS Energy Corporation - 5.875% NT REDEEM 01/03/2079 USD 25
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Earnings Call Q3 2026
October 27, 2026 - AI Summary
Financial outlook reaffirmed (2026/2027)
- CMS reaffirmed 2026 adjusted EPS guidance of $3.83–$3.90, still guided toward the upper end; Q3 YTD delivered adjusted EPS $2.95 (excluding NorthStar restructuring), + $0.29 favorable vs last year.
- Management noted favorable execution drivers: constructive regulatory outcomes, completion of retained Michigan solar projects within NorthStar, and storm/deferral benefits, with weather assumed “normal” in planning.
- Reaffirmed 2027 adjusted EPS guidance of $4.08–$4.17, incorporating NorthStar restructuring; longer-term remains 6%–8% adjusted EPS growth toward the high end (≈7% or better).
NorthStar restructuring progressing well; supports earnings quality post-2027
- As of call, 35%+ of NorthStar assets have signed agreements or closed, with strong buyer interest and most remaining assets in exclusivity; CMS reiterated restructure expected to complete by year-end.
- Restructuring keeps certain retained assets (notably Dearborn Industrial Generation (DIG), small gas peakers, and 4 commercial solar projects) expected to generate strong cash flows.
- Management highlighted a major balance sheet/financing benefit: ability to reduce parent funding by $500M+ within the current 5-year plan, positioning for ~100% regulated utility earnings growth after 2027.
Michigan IRP filing increases clean generation + storage + reliability gas; large capital opportunity
- In September, CMS filed its long-term Integrated Resource Plan (IRP) through 2040 to meet Michigan clean energy targets while maintaining reliability.
- The IRP includes 15.8 GW of clean resources (vs 10.8 GW already approved), plus 4.1 GW battery storage (up from 850 MW), and 1.4 GW new simple-cycle gas to replace aging oil/gas peakers for grid reliability.
- CMS framed ~$27B of long-term investment opportunity and emphasized revenue mechanics via PPAs, including a financial compensation mechanism (FCM) starting $125M in 2031 and growing to ~$195M by 2040 (assumes ~50% ownership split).
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$-67.27
437.6% downside
Current Fair Value
437.6% downsideOvervalued by 437.6% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $6.24 Billion |
|---|---|
| Enterprise Value | $25.31 Billion |
| Annual dividend | $1.47 |
| Dividend yield | 3.21% |
| Earnings per Share | $3.53 |
| Beta | 0.5 |
| Outstanding Shares | 312,900,000 |
Return
| Return on Equity | 9.15% |
|---|---|
| Return on Assets | 2.16% |
| Return on Invested Capital | 3.50% |
Valuation & Multiples
| P/E Ratio | 24.6 |
|---|---|
| PEG | -44.24 |
| Price to Sales | 0.71 |
| Price to Book Ratio | 0.62 |
| Enterprise Value to Revenue | 2.82 |
| Enterprise Value to EBIT | 19.64 |
| Enterprise Value to Net Income | 29 |
| Total Debt to Enterprise | 0.76 |
| Debt to Equity | 2.01 |
Revenue Sources
No data
Last Earnings Call
Report Date
October 27, 2026
EPS Estimate
$1.35
Consensus analyst estimateRevenue Estimate
$2.23 B
Consensus analyst estimateNext Earnings Call
Expected Date
February 4, 2027
EPS Estimate
$1.00
Consensus analyst estimateRevenue Estimate
$2.30 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.00, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.00000% |
|---|---|
| Total Calls | - |
| Total Puts | - |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 0.00%▲ 0.00% |
|---|---|
| Total Invested | $19,798▲ 110.30% |
| Investors Holding | 20% |
About CMS Energy Corporation
2,018 employees
CEO: Patricia Poppe
CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and NorthStar Clean Energy. The Electric Utility segment is involved in the generatio...