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CMS, CMS Energy Corporation

Multi-Utilities capital-intensive Regulated utilityCapital build-out

CMS Energy was formed as a corporation in Michigan in 1987 and is an energy company operating primarily in Michigan.

Consumers' customer base consists of a mix of primarily residential, commercial, and diversified industrial customers.

NorthStar Clean Energy, through its subsidiaries and equity investments, is engaged in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production.

Latest annual: FY2025 10-K

CMS · CMS Energy Corporation

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$8.5B

+13.6% YoY · 6% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $8.8B 5-yr avg $7.9B

Operating margin 18.9% 5-yr avg 17.3%

ROIC 5% 5-yr avg 5%

Owner-earnings margin 9% 5-yr avg 10%

Free cash flow margin −19% 5-yr avg −10%

Next report Est. 10/26–11/2 · the 10-Q for the quarter ended late September · due within 40 days of period end · has filed ~30 days after · the wire records it on arrival

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Regulated utility. Returns are set by regulation on an approved rate base; the capital spending regulators approve becomes the growth, recovered through allowed rates. Capital build-out. Capital spending has surged to 45% of sales, today's earnings are charged less depreciation than tomorrow's will be.
What moves the needle: Operating margin has run about 18% through the cycle, a solid margin the cost base and competition set as much as the price does. That margin has stayed fairly steady relative to where it runs (14%–20% over the years), so unit growth and cost discipline, not a moving line, are the lever. Capital spending runs about 30% of sales, well above depreciation, so the return earned on what it sinks into that plant weighs as much as the margin. Read this kind of business on rate base and the allowed return. On its own account, the filing leans hardest on cyclicality & demand, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 5%, above 15% in 0 of 10 years). By owner earnings: roughly 12% of revenue reaches owners as cash, consistently. Modest returns here are the design, not a verdict: a regulated utility's prices are set by commission, so the questions are the return the regulator allows, how fast the invested base it earns that return on is growing, and the health of the relationship with the commissions that decide both — all of which live in the 10-K, not the multiple.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMJun 2026
											Income statement
$6.4B	$6.6B	$6.9B	$6.6B	$6.4B	$7.3B	$8.6B	$7.5B	$7.5B	$8.5B	$8.8B	RevenueRevenue
$1.3B	$1.3B	$1.2B	$1.1B	$1.2B	$1.1B	$1.2B	$1.2B	$1.5B	$1.7B	$1.7B	Operating incomeOp. inc.
19.6%	20.3%	16.9%	16.8%	19.2%	15.6%	14.2%	16.6%	19.8%	20.2%	18.9%	Operating marginOp. mgn
$826M	$886M	$774M	$764M	$809M	$823M	$902M	$954M	$1.1B	$1.2B	—	Pretax incomePretax
$551M	$460M	$657M	$680M	$755M	$1.4B	$837M	$887M	$1.0B	$1.1B	$1.0B	Net incomeNet inc.
33%	48%	15%	17%	14%	12%	10%	15%	16%	20%	19%	Effective tax rateTax rate
											Cash flow & returns
$1.6B	$1.7B	$1.7B	$1.8B	$1.3B	$1.8B	$855M	$2.3B	$2.4B	$2.2B	$2.1B	Operating cash flowOp. cash
$811M	$881M	$933M	$989M	$1.0B	$1.1B	$1.1B	$1.2B	$1.2B	$1.3B	$1.4B	Depreciation & amortizationD&A
$267M	$364M	$113M	$121M	($522M)	($648M)	($1.1B)	$242M	$127M	($142M)	($228M)	Working capital & otherWC & other
$1.7B	$1.7B	$2.1B	$2.1B	$2.3B	$2.1B	$2.4B	$2.4B	$3.0B	$3.8B	$3.8B	CapexCapex
26.1%	25.3%	30.2%	31.7%	36.0%	28.3%	27.6%	32.3%	40.2%	44.8%	43.4%	Capex / revenueCapex/rev
$818M	$824M	$770M	$801M	$233M	$705M	($271M)	$1.1B	$1.1B	$929M	$798M	Owner earningsOwner earn.
12.8%	12.5%	11.2%	12.1%	3.6%	9.6%	−3.2%	15.1%	15.0%	10.9%	9.1%	Owner earnings marginOE mgn
($43M)	$40M	($371M)	($307M)	($1.0B)	($257M)	($1.5B)	($98M)	($648M)	($1.6B)	($1.7B)	Free cash flowFCF
−0.7%	0.6%	−5.4%	−4.6%	−16.1%	−3.5%	−17.7%	−1.3%	−8.6%	−18.6%	−19.0%	Free cash flow marginFCF mgn
$347M	$377M	$407M	$436M	$467M	$509M	$546M	—	—	—	$571M	Dividends paidDiv. paid
($1.9B)	($1.9B)	($2.6B)	($2.8B)	($2.9B)	($1.2B)	($2.5B)	($3.4B)	($3.1B)	($4.0B)	—	Investing cash flowInv. cash
$255M	$110M	$874M	$1.0B	$1.6B	($295M)	$1.3B	$1.1B	$614M	$2.2B	—	Financing cash flowFin. cash
($31M)	($53M)	($29M)	($18M)	$28M	$291M	($294M)	$66M	($70M)	$437M	—	Change in cashΔ cash
6%	5%	6%	5%	6%	6%	5%	5%	5%	5%	5%	ROICROIC
13%	10%	14%	14%	14%	20%	12%	12%	12%	12%	10%	Return on equityROE
5%	2%	5%	5%	5%	13%	4%	—	—	—	5%	Retained to equityRetained/eq
											Balance sheet
$235M	$182M	$153M	$140M	$32M	$452M	$164M	$227M	$103M	$509M	$241M	Cash & investmentsCash+inv
$821M	$1.0B	$964M	$886M	$853M	$931M	$1.6B	—	—	—	—	ReceivablesReceiv.
$598M	$725M	$723M	$622M	$661M	$875M	$928M	—	—	—	—	Accounts payablePayables
$223M	$307M	$241M	$264M	$192M	$56M	$636M	—	—	—	—	Operating working capitalOper. WC
$2.3B	$2.5B	$2.5B	$2.3B	$2.4B	$2.6B	$3.4B	$2.8B	$2.8B	$3.5B	$2.9B	Current assetsCur. assets
$2.7B	$2.8B	$2.6B	$2.7B	$3.1B	$2.2B	$3.0B	$2.9B	$3.5B	$3.5B	$3.1B	Current liabilitiesCur. liab.
0.9×	0.9×	0.9×	0.9×	0.8×	1.2×	1.2×	1.0×	0.8×	1.0×	0.9×	Current ratioCurr. ratio
$15.7B	$16.8B	$18.1B	$18.9B	$21.0B	$22.4B	$22.7B	$25.1B	$27.5B	$30.7B	—	Net PP&ENet PP&E
$2.1B	$1.8B	$1.8B	$2.5B	$2.7B	$2.3B	$3.7B	$3.9B	$3.8B	$3.5B	—	Regulatory assetsReg. assets
$2.1B	$3.8B	$3.8B	$3.8B	$3.9B	$3.9B	$3.9B	$4.0B	$4.2B	$4.2B	—	Regulatory liabilitiesReg. liab.
$21.6B	$23.1B	$24.5B	$26.8B	$29.7B	$28.8B	$31.4B	$33.5B	$35.9B	$39.9B	$40.9B	Total assetsAssets
$9.5B	$10.2B	$11.6B	$13.1B	$12.3B	$12.4B	$14.2B	$15.5B	$16.4B	$18.8B	$19.0B	Total debtDebt
$9.3B	$10.0B	$11.4B	$12.9B	$12.3B	$12.0B	$14.0B	$15.3B	$16.3B	$18.2B	$18.8B	Net debt / (cash)Net debt
$435M	$438M	$458M	$460M	$505M	$500M	$519M	$643M	$708M	$789M	$817M	Interest expenseInt. exp.
2.9×	3.1×	2.5×	2.4×	2.4×	2.3×	2.4×	1.9×	2.1×	2.2×	2.0×	Interest coverageInt. cov.
$37M	$37M	$37M	$37M	$581M	$557M	$580M	$581M	$518M	$567M	—	Noncontrolling interestsNCI
$4.3B	$4.4B	$4.8B	$5.0B	$5.5B	$6.6B	$7.0B	$7.5B	$8.2B	$9.1B	$9.8B	Shareholders’ equityEquity
											Per share
279M	281M	283M	284M	286M	290M	290M	292M	298M	301M	309M	Shares out (diluted)Shares
$22.94	$23.44	$24.29	$23.30	$22.42	$25.32	$29.64	$25.58	$25.19	$28.37	$28.53	Revenue / shareRev/sh
$1.98	$1.64	$2.32	$2.39	$2.64	$4.67	$2.89	$3.04	$3.36	$3.56	$3.32	EPS (diluted)EPS
$2.93	$2.93	$2.72	$2.82	$0.81	$2.44	$-0.93	$3.87	$3.79	$3.09	$2.58	Owner earnings / shareOE/sh
$-0.15	$0.14	$-1.31	$-1.08	$-3.62	$-0.89	$-5.24	$-0.34	$-2.17	$-5.28	$-5.43	Free cash flow / shareFCF/sh
$1.24	$1.34	$1.44	$1.53	$1.63	$1.76	$1.88	—	—	—	$1.85	Dividends / shareDiv/sh
$5.99	$5.93	$7.33	$7.38	$8.07	$7.17	$8.19	$8.25	$10.12	$12.70	$12.38	Cap. spending / shareCapex/sh
$15.25	$15.82	$16.81	$17.65	$19.20	$22.91	$24.19	$25.86	$27.59	$30.38	$31.64	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+2.4%/yr	+4.8%/yr
Owner earnings / share	+0.6%/yr	+30.6%/yr
EPS	+6.8%/yr	+6.2%/yr
Dividends / share	+7.1%/yr (6-yr)	+7.0%/yr
Capital spending / share	+8.7%/yr	+9.5%/yr
Book value / share	+8.0%/yr	+9.6%/yr

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $929M of owner earnings, the operating cash left after the $1.3B it takes just to hold its position. It put $2.5B more into growth; free cash flow, after that spending, was ($1.6B).

Reported net income$1.1B

Owner earnings$929M · 11% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$1.1B	$1.0B	$887M	$837M	$1.4B
Depreciation & amortizationnon-cash charge added back	+$1.3B	+$1.2B	+$1.2B	+$1.1B	+$1.1B
Working capital & othertiming of cash in and out, other non-cash items	−$142M	+$127M	+$242M	−$1.1B	−$648M
Cash from operations	$2.2B	$2.4B	$2.3B	$855M	$1.8B
Maintenance capital expenditurethe spending needed just to hold position and volume	−$1.3B	−$1.2B	−$1.2B	−$1.1B	−$1.1B
Owner earnings	$929M	$1.1B	$1.1B	($271M)	$705M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$2.5B	−$1.8B	−$1.2B	−$1.2B	−$962M
Free cash flow	($1.6B)	($648M)	($98M)	($1.5B)	($257M)
Owner-earnings marginowner earnings ÷ revenue	11%	15%	15%	-3%	10%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $1.3B, roughly its depreciation, the rate its assets wear out). The other $2.5B of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows.

A regulated utility reads differently here. What it spends above depreciation goes into rate base, where the commission lets it earn the allowed return and recover the capital, with interest, over decades — growth that is financed, not taken out of owners' pockets this year. So the truth sits between the bridge's two ends: owner earnings excuses the build-out entirely, free cash flow charges it entirely, and the scorecard's utility-plant figure shows how fast the base earning that return is compounding.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

The allowed return, earned and credited

Earned return on equity 12.6%

Earning the allowed return

Median over 10 readable years · latest FY2025: 11.7% (net income $1.1B ÷ equity $9.1B)

What this means
A commission caps what a regulated utility may earn on shareholders' capital, so the question is not whether the return is high but whether the company actually earns what it is allowed — persistent under-earning means costs the regulator will not put in rates, and a return above the band usually means unregulated businesses in the mix. Read through the record, because a single year carries rate-case timing noise.
AFUDC in earnings —

Not enough data

What this means
The equity allowance for funds used during construction is not tagged in this filer's structured data — the construction credit, if any, lives in the 10-K's rate-matters note.

The invested base and the regulatory ledger

Net utility plant —

Not enough data

What this means
No undimensioned utility-plant figure is tagged in this filer's structured data.
Regulatory assets & liabilities $3.5B / $4.2B

Owes ratepayers

Regulatory assets $3.5B · regulatory liabilities $4.2B · net $717M liability position, as filed

What this means
The ledger of the regulatory relationship: assets are costs the commission has agreed the utility may collect from ratepayers in future rates, liabilities are amounts it must give back. Both are promises whose worth depends entirely on the commissions that made them — which is why they are shown as filed and never netted into earnings adjustments here.

Graham’s defensive tests · 3 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $8.5B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity —

Current ratio ≥ 2× (waived for utilities) · exempt

What this means
Graham exempted public utilities from this test: their working capital “takes care of itself” through the continuous bond-and-share financing of growth, so a thin current ratio is the industry's structure, not a warning. His substitute test — debt no more than twice book equity — is the next line.
Conservative debt Near

Debt ≤ 2× equity (Graham's utility test) · $18.8B vs $9.1B equity

What this means
Graham's own substitution for public utilities: debt not exceeding twice the stock equity at book value, in place of the working-capital tests an industrial faces. A utility finances its plant with bonds by design; the question is whether the borrowing stays inside the equity behind it.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 7 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +78%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $3.15/share (latest year $3.42), the averaged base the calculator's gate runs on, and book value is $29.16/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 0 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 19% → 19% (3-yr avg ends)

What this means
Through the cycle the operating margin held roughly steady — about 19% early, 19% lately, median 17%.
Reinvestment, incremental ROIC 4%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Owner earnings growth +3%/yr

What this means
Owner earnings grew about 3% a year over the record.
Worst year 2022 · 14.2% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count +0.9%/yr

What this means
Roughly flat share count, little dilution, little buyback.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.
How management talks about it Promotional

What this means
Results have held roughly flat while the filing leans on a promoter’s vocabulary — watch whether the words are doing work the numbers are not.

All figures as filed; the source filing is linked above.

Rate cases, in the filing’s words

FY2025 10-Kthe filing, SEC EDGAR →

A regulated utility does not set its own price. It asks a commission for one, case by case, and the commission grants some part of it. Below are the proceedings this filing puts on the record, quoted verbatim, largest dollars first. Nothing here is computed; every figure is the filer’s own sentence.

MPSCrequested by the filer
$460 million
“The new rates became effective in April 2025 62 2025 Electric Rate Case: In June 2025, Consumers filed an application with the MPSC seeking a rate increase of $460 million, made up of two components.”
MPSCrequested by the filer
$ 325 million
“Consumers Electric Utility 2024 Electric Rate Case: In May 2024, Consumers filed an application with the MPSC seeking a rate increase of $ 325 million, made up of two components.”
MPSCgranted by the commission
$176 million
“Electric Rate Case: In March 2025, the MPSC issued an order authorizing an annual rate increase of $176 million, which is inclusive of a $22 million surcharge for the recovery of distribution investments made in 2023 that exceeded the rate amounts authorized in accordance with previous electric rate orders.”
MPSCgranted by the commission
$157.5 million
“Gas Rate Case: In September 2025, the MPSC issued an order authorizing an annual rate increase of $157.5 million, based on a 9.80 percent authorized return on equity.”

Sentences from the Regulatory Matters and Pending Proceedings disclosures and the MD&A of the latest 10-K, largest dollars first, at most six. “Granted” marks a sentence in which the commission itself is the subject of the approving verb; everything else renders as a request, never as a decided outcome. A return on equity is shown only where the filer states one between 8 and 13 percent — the same figure in these filings also carries equity ratios and fair-value returns, and a number that must be interpreted before it can be believed is not shown at all. Nothing here says whether a case is still pending: filings state timings that are already past by the time they are read.

Current Position

as of the latest quarter, Jun 30, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$2.9B

Cash & short-term investments$241M
Other current assets$2.6B

Current liabilities$3.1B

Debt due within a year$864M
Other current liabilities$2.2B

Current ratio0.94×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.94×stricter: inventory excluded

Cash ratio0.08×strictest: cash alone against what's due

Working capital($197M)the cushion left after near-term bills

Debt due this year vs. cash$864M due · $241M cash cash alone won't cover the maturities; it leans on refinancing or operating cash · both figures from the Jun 30, 2026 balance sheet

Revenue, latest quarter vs. a year ago−0.5%the freshest read on whether the business is still growing

Current ratio, recent quarters1.2× → 0.9×

Deeper floors

Tangible book value$9.8Bequity stripped of goodwill & intangibles

Debt incl. operating leases$19.1B$22M of it operating leases

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $17.7B of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$23.5B · 133%
Dividends$3.1B · 17%

Returned to owners$3.1B
44% of the owner earnings the business produced over the span, $3.1B as dividends and $0 as buybacks.
Source of funding−$8.9B
Reinvestment and shareholder returns ran $8.9B beyond the operating cash the business generated, so the gap was financed off the balance sheet: debt rose from $9.5B to $19.0B.
Net change in share count10.8%
The diluted count rose from 279M to 309M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$1.88/sh
Paid in 7 of the years on record, the per-share dividend growing about 7% a year. It was never cut over the span.
Return on what it retained5%
Of the earnings it kept rather than paid out ($5.2B over the span), annual owner earnings (first three years vs last three) grew $259M, so each retained $1 added about 0.05 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Rochow	$6.9M	$7.7M	$705M
2022	Rochow	$8.7M	$8.2M	($271M)
2023	Rochow	$9.6M	$9.6M	$1.1B
2024	Rochow	$10.4M	$15.6M	$1.1B
2025	Rochow	$10.5M	$12.3M	$929M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Peers, Multi-Utilities

The same industry, side by side on owner economics. Each column names the period it is read over; the group median at the foot is the line to read each figure against.

Company	Revenuelatest FY, USD	ROEmedian over the record	Plant growthannualized over the record	Dividend / cashmedian over the record
EDConsolidated Edison Inc.	$16.9B	8%	5.9%	30%
PEGPublic Service Enterprise Group Incorporated	$12.2B	11%	4.1%	32%
WECWEC Energy Group Inc.	$9.8B	11%	—	33%
AEEAmeren Corporation	$8.8B	10%	—	24%
CMSCMS Energy Corporation	$8.5B	13%	—	24%
NINiSource Inc	$6.5B	8%	9.1%	27%
EVRGEvergy	$6.0B	8%	14.5%	29%
LNTAlliant Energy	$4.4B	11%	8.0%	57%
Group median	—	11%	—	30%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what CMS Energy Corporation has delivered.

CMS Energy Corporation’s latest year shows negative owner earnings, the mark of a build-out: total capital spending outruns the cash the business throws off today. So the tool opens on the steady-state base (maintenance capex in place of the build-out spend), the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, CMS Energy Corporation earns about $995M on its 11.6% median owner-earnings margin. This year’s 10.9% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($995M) Net of stock comp Steady-state · maintenance capex ($842M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.71% 10-year Treasury (Aug 18, 2026) + 4.29 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+48%/yr

Owner-earnings growth · ’16→’25+3%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.71%, as of Aug 18, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow ($1.7B) on 314M shares outstanding, per the 10-Q cover, as of 2026-07-13; net debt $18.8B. The base opens on the steady-state figure (the latest year is negative on total capex mid-build-out); clear Steady-state to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($3.8B) runs well above depreciation ($1.4B), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $842M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh CMS against another business →

Cite: Owner Scorecard, "CMS Energy Corporation (CMS), the owner's record," https://ownerscorecard.com/c/CMS, data as of 2026-08-17.

Manual order: ← CMPR its page in the Manual CMSA →

Industry order: ← AVA the Multi-Utilities chapter CMSA →