CMS Energy Retained Earnings vs. EBITDA
| CMSD Stock | USD 24.30 0.06 0.25% |
Retained Earnings | First Reported 1994-06-30 | Previous Quarter 1.7 B | Current Value 1.8 B | Quarterly Volatility 985.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.47 | 0.3835 |
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| Operating Profit Margin | 0.088 | 0.1655 |
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| Pretax Profit Margin | 0.13 | 0.1278 |
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| Return On Assets | 0.0278 | 0.0265 |
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| Return On Equity | 0.12 | 0.1176 |
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For CMS Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CMS Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CMS Energy Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CMS Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CMS Energy Corp over time as well as its relative position and ranking within its peers.
CMS |
CMS Energy's Revenue Breakdown by Earning Segment
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Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CMS Energy. If investors know CMS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CMS Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of CMS Energy Corp is measured differently than its book value, which is the value of CMS that is recorded on the company's balance sheet. Investors also form their own opinion of CMS Energy's value that differs from its market value or its book value, called intrinsic value, which is CMS Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CMS Energy's market value can be influenced by many factors that don't directly affect CMS Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CMS Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if CMS Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CMS Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
CMS Energy Corp EBITDA vs. Retained Earnings Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CMS Energy's current stock value. Our valuation model uses many indicators to compare CMS Energy value to that of its competitors to determine the firm's financial worth. CMS Energy Corp is rated second in retained earnings category among its peers. It is number one stock in ebitda category among its peers totaling about 1.67 of EBITDA per Retained Earnings. At present, CMS Energy's Retained Earnings are projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value CMS Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.CMS EBITDA vs. Retained Earnings
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
CMS Energy |
| = | 1.66 B |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
CMS Energy |
| = | 2.78 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
CMS EBITDA Comparison
CMS Energy is currently under evaluation in ebitda category among its peers.
CMS Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CMS Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CMS Energy will eventually generate negative long term returns. The profitability progress is the general direction of CMS Energy's change in net profit over the period of time. It can combine multiple indicators of CMS Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -46 M | -48.3 M | |
| Operating Income | 1.2 B | 974.7 M | |
| Net Income | 808 M | 848.4 M | |
| Income Tax Expense | 147 M | 100.8 M | |
| Income Before Tax | 954 M | 1 B | |
| Total Other Income Expense Net | 362 M | 380.1 M | |
| Net Income From Continuing Ops | 757.9 M | 574.2 M | |
| Non Operating Income Net Other | 80.5 M | 84.5 M | |
| Net Income Applicable To Common Shares | 782 M | 597.1 M | |
| Interest Income | 577.3 M | 470.1 M | |
| Change To Netincome | 5.4 M | 5.1 M | |
| Net Income Per Share | 3.05 | 3.20 | |
| Income Quality | 2.86 | 2.32 | |
| Net Income Per E B T | 0.93 | 0.49 |
CMS Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CMS Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CMS Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CMS Energy's important profitability drivers and their relationship over time.
| Retained Earnings vs Revenue | ||
| Net Income vs EBITDA | ||
| Retained Earnings vs Total Debt | ||
| Cash Flow From Operations vs EBITDA | ||
| Retained Earnings vs Number Of Employees | ||
| Total Asset vs EBITDA |
Use CMS Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CMS Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CMS Energy will appreciate offsetting losses from the drop in the long position's value.CMS Energy Pair Trading
CMS Energy Corp Pair Trading Analysis
The ability to find closely correlated positions to CMS Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CMS Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CMS Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CMS Energy Corp to buy it.
The correlation of CMS Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CMS Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CMS Energy Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CMS Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your CMS Energy position
In addition to having CMS Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in CMS Stock
When determining whether CMS Energy Corp is a strong investment it is important to analyze CMS Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CMS Energy's future performance. For an informed investment choice regarding CMS Stock, refer to the following important reports:Check out Trending Equities. For information on how to trade CMS Stock refer to our How to Trade CMS Stock guide.You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
To fully project CMS Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CMS Energy Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include CMS Energy's income statement, its balance sheet, and the statement of cash flows.