CMS Energy Corporation (CMS) vs Edison International (EIX)

CMS Energy Corporation and Edison International are both Utilities Regulated Electric companies. CMS Energy Corporation and Edison International are of similar size ($21.8B and $20.3B). Edison International trades at the lower P/E: 5.4× against 18.9×. Edison International grew revenue faster over the last twelve months: 10.7% against 9.93%. Edison International has the higher net margin (19.3% vs 11.5%) and the higher return on invested capital (6.48% vs 3.56%). Both pay a dividend; Edison International yields more (4.55% vs 3.68%). Across the 22 metrics below, Edison International leads on 20 and CMS Energy Corporation on 2.

Valuation

Metric CMS EIX Utilities Regulated Electric median
P/E 18.94 5.41 18.84
P/S 2.22 1.04 2.52
P/B 1.92 1.07 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.76 6.35 11.82
EV/Sales 4.37 3.21 4.58
Earnings yield 5.28% 18.48% 5.30%
Free cash flow yield (9.76%) (1.92%) (5.06%)

Profitability

Metric CMS EIX Utilities Regulated Electric median
Gross margin 61.16% 75.10% 66.28%
Operating margin 18.95% 32.69% 21.79%
Net margin 11.53% 19.28% 12.94%
Free cash flow margin (21.67%) (2.00%) (11.51%)
Return on equity 10.74% 20.68% 9.75%
Return on assets 2.59% 4.05% 2.75%
Return on invested capital 3.56% 6.48% 3.87%

Growth

Metric CMS EIX Utilities Regulated Electric median
Revenue growth (TTM) 9.93% 10.74% 7.43%
EPS growth (last fiscal year) 6.01% 248.94% —
Revenue growth, 5-year CAGR 5.88% 7.31% 6.75%
Net income growth, 5-year CAGR 7.04% 43.26% 6.44%

Health

Metric CMS EIX Utilities Regulated Electric median
Debt to equity 1.86 2.22 1.53
Current ratio 0.94 0.66 0.81
Net debt to EBITDA 6.03 3.84 5.25

Dividend

Metric CMS EIX Utilities Regulated Electric median
Dividend yield 3.68% 4.55% 4.33%
Payout ratio 0.76 1.17 0.66

Size

Metric CMS EIX Utilities Regulated Electric median
Market cap 21.76b 20.25b 22.90b

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