Cms Energy Intrinsic Stock Value – CMS ENERGY Reports 2nd Quarter FY2023 Earnings Results on June 30th 2023

☀️Earnings Overview

CMS ENERGY ($NYSE:CMS) reported its earnings results for the second quarter of FY2023, ending on June 30th 2023. Total revenue for the quarter amounted to USD 1555.0 million, a decrease of 19.0% year over year. However, net income was reported at USD 198.0 million, an increase of 33.8% from the same period in the prior year.

Stock Price

At the time of the release, the company’s stock opened at $63.3 and closed at $61.6, representing a decrease of 2.9% from the prior closing price of 63.4. CMS ENERGY is an energy holding company based in Michigan that offers gas, electric, and other services to customers in the United States. The company operates through three main segments: electric utility, gas utility, and enterprises. The electric utility segment generates and distributes electricity to residential, commercial, and industrial customers in Michigan. The gas utility segment distributes natural gas to residential, commercial, and industrial customers in Michigan. The enterprise segment serves customers in the United States through its independent power production operations.

CMS ENERGY reported an improvement in revenue due to higher electricity and natural gas sales as well as higher capacity revenues from its independent power production operations. Operating income also increased on increased margins in the electric and gas utility segments due to lower operating costs. Despite the impressive results, CMS ENERGY stock declined 2.9%. This could be attributed to investors’ anticipation of lower energy prices in the near term due to mild weather and an uncertain economic recovery. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Cms Energy. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Cms Energy. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Cms Energy. More…

Key Ratios Snapshot

Some of the financial key ratios for Cms Energy are shown below. More…

Analysis – Cms Energy Intrinsic Stock Value

At GoodWhale, we have performed an analysis of CMS ENERGY‘s wellbeing. Based on our proprietary Valuation Line, we have calculated a fair value for CMS ENERGY’s share to be around $67.0. Currently, CMS ENERGY stock is traded at $61.6, which is a fair price that is undervalued by 8.1%. We recommend investors to pay attention to this stock and consider buying it at the price of $61.6. More…

Peers

CMS Energy Corp and its competitors, OGE Energy Corp, Xcel Energy Inc, DTE Energy Co, are all fighting for a share of the energy market. All four companies are large, publicly-traded utilities with a history of providing reliable service to their customers.

However, CMS Energy Corp has a few key advantages that could help it to gain market share in the future. First, CMS Energy Corp is the only company of the four that is headquartered in Michigan. This gives CMS Energy Corp a better understanding of the needs of Michigan customers and allows the company to be more responsive to changes in the Michigan energy market. Additionally, CMS Energy Corp has a strong relationship with the state government, which can help the company to navigate the regulatory landscape and secure favorable treatment for its customers. Finally, CMS Energy Corp has a diversified portfolio of energy assets, including both traditional and renewable sources, which gives the company a hedge against fluctuations in the price of energy.

– OGE Energy Corp ($NYSE:OGE)

Duke Energy Corp is a publicly traded electric power holding company in the United States. Headquartered in Charlotte, North Carolina, Duke Energy has approximately 52,700 megawatts of electric generating capacity and 1,937 miles of transmission lines. The company serves approximately 7.6 million customers in six states. Duke Energy is the largest electric power holding company in the United States.

– Xcel Energy Inc ($NASDAQ:XEL)

Xcel Energy Inc is a public utility holding company based in Minneapolis, Minnesota. It is the largest provider of electricity and natural gas in the United States. The company serves 8 states: Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. Xcel Energy Inc has a market cap of 33.31B as of 2022 and a Return on Equity of 8.81%. The company is a diversified energy company with operations in electricity generation, transmission and distribution, and natural gas storage and pipelines. Xcel Energy Inc’s primary business is the regulated utility business, which includes the generation, transmission and distribution of electricity and the storage and transportation of natural gas.

– DTE Energy Co ($NYSE:DTE)

DTE Energy Co is an energy company that operates in electric and natural gas utilities. It has a market cap of 20.82B as of 2022 and a Return on Equity of 9.17%. The company is headquartered in Detroit, Michigan, and employs around 10,000 people. DTE Energy Co is a diversified energy company that provides electricity and natural gas to customers in Michigan. The company also owns and operates several power plants, including coal-fired, nuclear, and renewable energy facilities.

Summary

CMS Energy is an attractive option for investors looking for a long-term growth stock. In the second quarter of FY2023, ending June 30th 2023, the company reported total revenue of USD 1555.0 million and net income of USD 198.0 million, representing a 19.0% and 33.8% decrease/increase year over year, respectively. Overall, CMS Energy remains a solid dividend stock with potential for significant capital appreciation in the future.