CMS Energy Corporation (CMS) vs Evergy Inc. (EVRG)

CMS Energy Corporation and Evergy Inc. are both Utilities Regulated Electric companies. CMS Energy Corporation is the larger, with a market value of $22.2B against $20.2B — 1.1× the size. Evergy Inc. trades at the lower P/E: 18.9× against 33.3×. Evergy Inc. grew revenue faster over the last twelve months: 8.54% against 8.20%. Evergy Inc. has the higher net margin (16.7% vs 9.60%) and the higher return on invested capital (4.18% vs 2.58%). Both pay a dividend; CMS Energy Corporation yields more (4.00% vs 3.19%). Across the 22 metrics below, Evergy Inc. leads on 13 and CMS Energy Corporation on 9.

Valuation

Metric CMS EVRG Utilities Regulated Electric median
P/E 33.27 18.92 19.45
P/S 2.46 3.16 2.78
P/B 2.19 1.82 1.82
Price to free cash flow n/m n/m 45.34
EV/EBITDA 16.07 12.16 12.40
EV/Sales 4.65 5.51 4.95
Earnings yield 3.01% 5.29% 5.12%
Free cash flow yield (7.90%) (7.67%) (5.93%)

Profitability

Metric CMS EVRG Utilities Regulated Electric median
Gross margin 60.99% 0.00% 62.00%
Operating margin 13.77% 27.37% 21.72%
Net margin 9.60% 16.67% 13.45%
Free cash flow margin (19.42%) (24.23%) (11.71%)
Return on equity 8.94% 9.94% 9.94%
Return on assets 2.16% 3.05% 2.85%
Return on invested capital 2.58% 4.18% 3.95%

Growth

Metric CMS EVRG Utilities Regulated Electric median
Revenue growth (TTM) 8.20% 8.54% 7.78%
EPS growth (last fiscal year) 6.01% (3.43%) 6.01%
Revenue growth, 5-year CAGR 5.88% 3.94% 6.72%
Net income growth, 5-year CAGR 7.04% 6.71% 6.50%

Health

Metric CMS EVRG Utilities Regulated Electric median
Debt to equity 1.96 1.36 1.54
Current ratio 0.95 0.49 0.88
Net debt to EBITDA 6.03 4.80 5.27

Dividend

Metric CMS EVRG Utilities Regulated Electric median
Dividend yield 4.00% 3.19% 3.16%
Payout ratio 1.33 0.62 0.63

Size

Metric CMS EVRG Utilities Regulated Electric median
Market cap 22.17b 20.15b 26.54b

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