Deep Dive Into CMS Energy Stock: Analyst Perspectives (5 Ratings)

During the last three months, 5 analysts shared their evaluations of CMS Energy CMS, revealing diverse outlooks from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $76.8, a high estimate of $80.00, and a low estimate of $69.00. Marking an increase of 6.67%, the current average surpasses the previous average price target of $72.00.

Investigating Analyst Ratings: An Elaborate Study

The perception of CMS Energy by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to CMS Energy. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CMS Energy compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of CMS Energy's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of CMS Energy's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on CMS Energy analyst ratings.

Unveiling the Story Behind CMS Energy

CMS Energy is an energy holding company with three principal businesses. Its regulated utility, Consumers Energy, provides regulated natural gas service to 1.8 million customers and electric service to 1.9 million customers in Michigan. NorthStar Clean Energy, formerly CMS Enterprises, is engaged in wholesale power generation, including contracted renewable energy. CMS sold EnerBank in October 2021.

Key Indicators: CMS Energy's Financial Health

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: CMS Energy's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 2.0%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Utilities sector.

Net Margin: CMS Energy's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 13.17%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.3%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): CMS Energy's ROA excels beyond industry benchmarks, reaching 0.74%. This signifies efficient management of assets and strong financial health.

Debt Management: CMS Energy's debt-to-equity ratio surpasses industry norms, standing at 2.07. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.