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 ($23.4B and $22.2B). Edison International trades at the lower P/E: 6.5× against 33.3×. CMS Energy Corporation grew revenue faster over the last twelve months: 8.20% against 2.60%. Edison International has the higher net margin (19.6% vs 9.60%) and the higher return on invested capital (6.06% vs 2.58%). Both pay a dividend; Edison International yields more (5.75% vs 4.00%). Across the 22 metrics below, Edison International leads on 19 and CMS Energy Corporation on 3.

Valuation

Metric CMS EIX Utilities Regulated Electric median
P/E 33.27 6.46 19.45
P/S 2.46 1.27 2.78
P/B 2.19 1.21 1.82
Price to free cash flow n/m n/m 45.34
EV/EBITDA 16.07 6.93 12.40
EV/Sales 4.65 3.50 4.95
Earnings yield 3.01% 15.49% 5.12%
Free cash flow yield (7.90%) (0.56%) (5.93%)

Profitability

Metric CMS EIX Utilities Regulated Electric median
Gross margin 60.99% 74.02% 62.00%
Operating margin 13.77% 31.78% 21.72%
Net margin 9.60% 19.60% 13.45%
Free cash flow margin (19.42%) (0.71%) (11.71%)
Return on equity 8.94% 19.63% 9.94%
Return on assets 2.16% 3.88% 2.85%
Return on invested capital 2.58% 6.06% 3.95%

Growth

Metric CMS EIX Utilities Regulated Electric median
Revenue growth (TTM) 8.20% 2.60% 7.78%
EPS growth (last fiscal year) 6.01% 248.94% 6.01%
Revenue growth, 5-year CAGR 5.88% 7.31% 6.72%
Net income growth, 5-year CAGR 7.04% 43.26% 6.50%

Health

Metric CMS EIX Utilities Regulated Electric median
Debt to equity 1.96 2.14 1.54
Current ratio 0.95 0.77 0.88
Net debt to EBITDA 6.03 3.84 5.27

Dividend

Metric CMS EIX Utilities Regulated Electric median
Dividend yield 4.00% 5.75% 3.16%
Payout ratio 1.33 0.37 0.63

Size

Metric CMS EIX Utilities Regulated Electric median
Market cap 22.17b 23.43b 26.54b

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