CMS Energy Current Ratio vs. Net Income
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. Projected growth potential of CMS fundamentally drives upward valuation adjustments. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive CMS Energy assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Dividend Share 1.355 |
Investors evaluate CMS Energy Corp using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating CMS Energy's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. External factors like market trends, sector rotation, and investor psychology can cause CMS Energy's market price to deviate significantly from intrinsic value.
It's important to distinguish between CMS Energy's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding CMS Energy should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, CMS Energy's market price signifies the transaction level at which participants voluntarily complete trades.
CMS Energy Corp Net Income 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 rated fourth in current ratio category among its peers. It is rated below average in net income category among its peers making up about 1,203,370,787 of Net Income per Current Ratio. At present, CMS Energy's Current Ratio is projected to slightly decrease 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 Net Income 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).
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
CMS Energy |
| = | 1.07 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
CMS Net Income Comparison
CMS Energy is currently under evaluation in net income category among its peers.
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 | -36 M | -37.8 M | |
| Operating Income | 1.7 B | 1 B | |
| Total Other Income Expense Net | -479 M | -502.9 M | |
| Net Income | 1.1 B | 1.1 B | |
| Income Tax Expense | 246 M | 258.3 M | |
| Income Before Tax | 1.2 B | 1.3 B | |
| 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 | 3.56 | 3.74 | |
| Income Quality | 2.09 | 2.44 | |
| Net Income Per E B T | 0.86 | 0.61 |
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.
CMS Energy Earnings per Share Projection vs Actual
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 Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 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 Adviser Favorites Theme or any other thematic opportunities.
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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.