Unveiling 7 Analyst Insights On CMS Energy

In the preceding three months, 7 analysts have released ratings for CMS Energy (NYSE:CMS), presenting a wide array of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $59.57, a high estimate of $65.00, and a low estimate of $55.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 3.66%.

Breaking Down Analyst Ratings: A Detailed Examination

An in-depth analysis of recent analyst actions unveils how financial experts perceive CMS Energy. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to CMS Energy. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of CMS Energy compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of CMS Energy's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into CMS Energy's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on CMS Energy analyst ratings.

About 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. CMS Enterprises is engaged in wholesale power generation, including contracted renewable energy. CMS sold EnerBank in October 2021.

CMS Energy: Delving into Financials

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: CMS Energy's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -17.34%. This indicates a decrease in top-line earnings. When compared to others in the Utilities sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 10.4%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): CMS Energy's ROE stands out, surpassing industry averages. With an impressive ROE of 2.51%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): CMS Energy's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.54%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.22, caution is advised due to increased financial risk.

The Basics of Analyst Ratings

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.

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