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CMS Energy Corporation(CMS)

F

Financial data as of Dec 31, 2025Declining · Utilities

FCF Margin-21.1%Free Cash Flow / Revenue
Cash Conversion208.7%Operating CF / Net Income
Free Cash Flow-$1.8B
Revenue$8.5B
Net Cash-$18.4BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio0.98Tight short-term liquidity
YoY FCF Growth-15.3%1 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1Current ratio below 1.0 (0.98)
→
-1Negative FCF in 3 of last 4 quarters
→
-0.5FCF trend declining (-15.3% YoY)
→
-1Only 1 positive quarters recently
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (209%)

Concerns

  • Negative FCF margin (-21.1%)
  • Net debt position ($18.4B)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 1 positive FCF quarters recently
  • Significant FCF decline (-15.3% YoY)
Heavy CapEx — Operating cash flow is strong (26% margin) but most is reinvested

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin-21.1%
Net Margin12.5%
Operating CF Margin26.2%
CapEx Ratio47.3%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$18.4BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio0.98Tight liquidity
Debt / Equity2.12High leverage

Quarterly FCF Trend

-15.3% YoYDeclining (-15.3%)

Free cash flow per quarter

Sector Comparison — Utilities

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameCMS Energy Corporation
SectorUtilities
Free Cash Flow-$1.8B
Revenue$8.5B
Net Income$1.1B
Operating Cash Flow$2.2B
Capital Expenditure$4.0B
FCF Margin-21.1%
Cash Conversion Rate208.7%
Net Margin12.5%
Total Debt$18.9B
Total Cash$509.0M
Net Cash-$18.4B
Current Ratio0.98
Debt / Equity2.12
Debt / FCFN/A
YoY FCF Growth-15.3%
Positive Quarters1 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

Related Research

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Sector Report5 min read

Utilities: An Entire Sector Failing Cash Flow

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Feb 13, 2026
WECSODUKEIX+6