CluenexCMS Energy CMS
CMS Energy scores weak on business quality (4.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What CMS Energy does
CMS Energy generates and distributes electricity and natural gas to millions of customers in Michigan, collecting regulated utility fees for essential energy services. The company is investing heavily in infrastructure to meet rising regional power demand, driving continuous capital expenditures and expanding its asset base.
- What it does best
CMS holds a regulated monopoly over its Michigan service territory, securing a reliable customer base protected by state utility commissions. This locked-in market underpins its 68.3% gross margin, outperforming peers like WEC at 65.7%.
- The main risk
High debt loads create persistent exposure to rising interest rates, with total debt reaching $18.9 billion against an interest coverage ratio of just 2.1x.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 19.8% while free cash flow margin is negative, driven by heavy infrastructure spending. Scale does not immediately ease cash outflows as ongoing capital investments keep cash burn high.
Regulatory barriers create a localized monopoly protecting its utility franchise, locking in regional customers. Its 44th percentile gross margin shows limited pricing power outside approved rate cases.
Revenue grew 13.6% to reach $8.8 billion, landing in the top quartile of its sector with a 77th percentile ranking for revenue growth, though heavy capital outlays continue to strain cash flow.
Total debt sits at $18.9 billion with interest coverage at 2.1x, making debt servicing a heavy lift. Free cash flow is deeply negative at -$1.9 billion due to massive capital spending, softening the financial profile.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 insider bought $14K on the open market.
Our sealed record on CMS
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
CMS Energy scores weak on the Cluenex quality check (4.2 of 10), measured against its own industry. Profitability is weak, moat fair, growth steady and financial health weak.
In the last 90 days of SEC Form 4 filings: 1 insider bought $14K on the open market.
Oct 27, 2026, before the open.
See CMS today
- Today's verdict on CMS, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “CMS Energy (CMS)”, https://cluenex.com/stocks/cms/, data as of Oct 10, 2026.