CMS Energy Stock Falls Thursday, Underperforming Market
December 23, 2023
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On Thursday, CMS ($NYSE:CMS) Energy Corp.’s stock saw a decline, resulting in it underperforming the market. CMS Energy is a Michigan-based diversified energy company that produces and distributes electricity and natural gas to millions of customers in the Midwest and Southeast U.S. Its businesses include Consumers Energy Company, Michigan’s largest utility, and various non-utility businesses including its independent power production business. Analysts attribute the stock’s decline to several factors, including increasing competition from renewable energy sources, concerns about the global economic outlook, and falling natural gas prices. While CMS Energy has made efforts to reduce its reliance on natural gas and invest in renewable energy sources, investors remain uncertain about the company’s ability to navigate the changing energy landscape. Despite the recent downturn, some analysts remain cautiously optimistic long-term, citing CMS Energy’s recent partnerships with other energy companies as a potential source of future growth.
Price History
The stock opened Friday at $57.2 and closed at $57.2, a slight increase of 0.6% from the previous day’s closing price of $56.9. Despite this modest gain, the stock still finished Thursday’s trading session below its opening level. Investors will likely be watching to see if the stock can recover and return to its previous highs. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cms Energy. More…
| Total Revenues | Net Income | Net Margin |
| 7.79k | 739 | 9.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cms Energy. More…
| Operations | Investing | Financing |
| 2.09k | -3.4k | 1.3k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cms Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 32.51k | 24.75k | 24.63 |
Key Ratios Snapshot
Some of the financial key ratios for Cms Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.3% | -5.9% | 18.4% |
| FCF Margin | ROE | ROA |
| -16.9% | 12.5% | 2.8% |
Analysis
GoodWhale has conducted an analysis of CMS ENERGY‘s fundamentals and, according to our Star Chart, we have classified it as a ‘cow’. This type of company is known for paying out consistent and sustainable dividends, making it an attractive option for investors looking for a steady income. The health score of CMS ENERGY is 4/10 in terms of cashflows and debt, suggesting that the company is likely to be able to pay off its debt and fund future operations. When looking at the other aspects of the company’s operations, it appears to be strong in assets and dividends, medium in profitability, and weak in growth. This make it an ideal investment opportunity for those looking for a moderately safe stock with lower volatility and a good dividend yield. 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
Investors in CMS Energy Corp. got a bit of a shock on Thursday as the stock price fell significantly, underperforming the market as a whole. Analysts are divided as to what may have caused the sudden decline. Some suggest that the market was reacting to the company’s recent earnings report, which showed a drop in profits, while others suggest that investors are selling off their shares on concerns related to the company’s high debt level.
In any case, investors should closely monitor the situation to see if the stock price recovers or continues to decline over the coming days and weeks. Meanwhile, analysts recommend exercising caution when investing in CMS Energy, and suggest that risk-averse investors may want to avoid the stock altogether.
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