CMS Energy Current Ratio vs. Beta
| CMSA Stock | USD 24.78 0.03 0.12% |
Current Ratio | First Reported 2010-12-31 | Previous Quarter 0.9806563 | Current Value 1.03 | Quarterly Volatility 4.67561899 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.45 | 0.3835 |
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| Net Profit Margin | 0.0682 | 0.1189 |
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| Operating Profit Margin | 0.13 | 0.1655 |
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| Pretax Profit Margin | 0.088 | 0.1278 |
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| Return On Assets | 0.0251 | 0.0265 |
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| Return On Equity | 0.1 | 0.1176 |
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For CMS Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CMS Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CMS Energy Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CMS Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CMS Energy Corp over time as well as its relative position and ranking within its peers.
CMS |
CMS Energy's Revenue Breakdown by Earning Segment
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Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CMS Energy. If investors know CMS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CMS Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Dividend Share 1.355 |
The market value of CMS Energy Corp is measured differently than its book value, which is the value of CMS that is recorded on the company's balance sheet. Investors also form their own opinion of CMS Energy's value that differs from its market value or its book value, called intrinsic value, which is CMS Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CMS Energy's market value can be influenced by many factors that don't directly affect CMS Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CMS Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if CMS Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CMS 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.
CMS Energy Corp Beta vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CMS Energy's current stock value. Our valuation model uses many indicators to compare CMS Energy value to that of its competitors to determine the firm's financial worth. CMS Energy Corp is number one stock in current ratio category among its peers. It also is number one stock in beta category among its peers totaling about 0.06 of Beta per Current Ratio. The ratio of Current Ratio to Beta for CMS Energy Corp is roughly 17.80 . At present, CMS Energy's Current Ratio is projected to slightly grow based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CMS Energy's earnings, one of the primary drivers of an investment's value.CMS Beta vs. Current Ratio
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
CMS Energy |
| = | 0.89 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
CMS Energy |
| = | 0.05 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
CMS Beta Comparison
CMS Energy is currently under evaluation in beta category among its peers.
Beta Analysis
As returns on the market increase, CMS Energy's returns are expected to increase less than the market. However, during the bear market, the loss of holding CMS Energy is expected to be smaller as well.
CMS Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CMS Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CMS Energy will eventually generate negative long term returns. The profitability progress is the general direction of CMS Energy's change in net profit over the period of time. It can combine multiple indicators of CMS 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -46 M | -48.3 M | |
| Operating Income | 1.2 B | 1 B | |
| Net Income | 886 M | 930.3 M | |
| Income Tax Expense | 147 M | 100.3 M | |
| Income Before Tax | 954 M | 1 B | |
| Total Other Income Expense Net | -281 M | -266.9 M | |
| Net Income From Continuing Ops | 757.9 M | 574.2 M | |
| Non Operating Income Net Other | 80.5 M | 84.5 M | |
| Net Income Applicable To Common Shares | 782 M | 597.1 M | |
| Interest Income | 577.3 M | 470.1 M | |
| Change To Netincome | 5.4 M | 5.1 M | |
| Net Income Per Share | 3.05 | 1.88 | |
| Income Quality | 2.61 | 2.82 | |
| Net Income Per E B T | 0.93 | 0.62 |
CMS Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CMS 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 CMS 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 CMS Energy's important profitability drivers and their relationship over time.
Use CMS Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CMS Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CMS Energy will appreciate offsetting losses from the drop in the long position's value.CMS Energy Pair Trading
CMS Energy Corp Pair Trading Analysis
The ability to find closely correlated positions to CMS Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CMS Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CMS Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CMS Energy Corp to buy it.
The correlation of CMS Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CMS Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CMS Energy Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CMS Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your CMS Energy position
In addition to having CMS 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 ESG Investing Thematic Idea Now
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Check out Trending Equities. For information on how to trade CMS Stock refer to our How to Trade CMS Stock guide.You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
To fully project CMS Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CMS Energy Corp 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 CMS Energy's income statement, its balance sheet, and the statement of cash flows.