Consumers Energy Current Valuation vs. Return On Asset

CMS-PB Preferred Stock  USD 80.66  0.02  0.02%   
Based on the key profitability measurements obtained from Consumers Energy's financial statements, Consumers Energy may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Consumers Energy's ability to earn profits and add value for shareholders.
For Consumers Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Consumers Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Consumers Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Consumers Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Consumers Energy over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
Please note, there is a significant difference between Consumers Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Consumers Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Consumers 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.

Consumers Energy Return On Asset vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Consumers Energy's current stock value. Our valuation model uses many indicators to compare Consumers Energy value to that of its competitors to determine the firm's financial worth.
Consumers Energy is the top company in current valuation category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Consumers Energy is about  555,791,867,093 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Consumers Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Consumers Energy's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Consumers Current Valuation vs. Competition

Consumers Energy is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities - Regulated Electric industry is currently estimated at about 841.48 Billion. Consumers Energy holds roughly 17.4 Billion in current valuation claiming about 2.07% of Utilities - Regulated Electric industry.

Consumers Return On Asset vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Consumers Energy

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
17.4 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Consumers Energy

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0313
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Consumers Return On Asset Comparison

Consumers Energy is currently under evaluation in return on asset category among its peers.

Consumers Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Consumers Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Consumers Energy will eventually generate negative long term returns. The profitability progress is the general direction of Consumers Energy's change in net profit over the period of time. It can combine multiple indicators of Consumers 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.
Consumers Energy Company operates as an electric and gas utility in Michigan. Consumers Energy Company is a subsidiary of CMS Energy Corporation. CMS Energy operates under Utilities - Regulated Electric classification in USA and is traded on New York Stock Exchange. It employs 7504 people.

Consumers Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Consumers 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 Consumers 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 Consumers Energy's important profitability drivers and their relationship over time.

Learn to be your own money manager

Our tools can tell you how much better you can do entering a position in Consumers Energy without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Sync Your Broker Now

   

Sync Your Broker

Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
All  Next Launch Module

Use Investing Themes to Complement your Consumers Energy position

In addition to having Consumers 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?

Run Hedge Favorites Thematic Idea Now

Hedge Favorites
Hedge Favorites Theme
Hedge Funds pool capital from accredited individuals or institutional investors and invest in a variety of assets, often with complex portfolio-construction and risk-management techniques. The Hedge Favorites theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Hedge Favorites Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in Consumers Preferred Stock

To fully project Consumers Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Consumers Energy 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 Consumers Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Consumers Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Consumers Energy investors may work on each financial statement separately, they are all related. The changes in Consumers Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Consumers Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.