CMS Energy Corporation (CMS) vs Eversource Energy (ES)

CMS Energy Corporation and Eversource Energy are both Utilities Regulated Electric companies. Eversource Energy is the larger, with a market value of $27.1B against $22.2B — 1.2× the size. Eversource Energy trades at the lower P/E: 18.6× against 33.3×. CMS Energy Corporation grew revenue faster over the last twelve months: 8.20% against 7.75%. Eversource Energy has the higher net margin (10.4% vs 9.60%) and the higher return on invested capital (4.32% vs 2.58%). Both pay a dividend; Eversource Energy yields more (4.33% vs 4.00%). Across the 22 metrics below, Eversource Energy leads on 19 and CMS Energy Corporation on 3.

Valuation

Metric CMS ES Utilities Regulated Electric median
P/E 33.27 18.63 19.45
P/S 2.46 1.93 2.78
P/B 2.19 1.66 1.82
Price to free cash flow n/m 90.95 45.34
EV/EBITDA 16.07 10.27 12.40
EV/Sales 4.65 3.88 4.95
Earnings yield 3.01% 5.37% 5.12%
Free cash flow yield (7.90%) 1.10% (5.93%)

Profitability

Metric CMS ES Utilities Regulated Electric median
Gross margin 60.99% 67.80% 62.00%
Operating margin 13.77% 21.55% 21.72%
Net margin 9.60% 10.35% 13.45%
Free cash flow margin (19.42%) 2.13% (11.71%)
Return on equity 8.94% 9.06% 9.94%
Return on assets 2.16% 2.33% 2.85%
Return on invested capital 2.58% 4.32% 3.95%

Growth

Metric CMS ES Utilities Regulated Electric median
Revenue growth (TTM) 8.20% 7.75% 7.78%
EPS growth (last fiscal year) 6.01% 100.88% 6.01%
Revenue growth, 5-year CAGR 5.88% 8.75% 6.72%
Net income growth, 5-year CAGR 7.04% 7.03% 6.50%

Health

Metric CMS ES Utilities Regulated Electric median
Debt to equity 1.96 1.78 1.54
Current ratio 0.95 0.80 0.88
Net debt to EBITDA 6.03 5.22 5.27

Dividend

Metric CMS ES Utilities Regulated Electric median
Dividend yield 4.00% 4.33% 3.16%
Payout ratio 1.33 0.81 0.63

Size

Metric CMS ES Utilities Regulated Electric median
Market cap 22.17b 27.09b 26.54b

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