CMS EnergyCMS +0.53%75 Debt-to-EBITDA is 4.88 as of Mar. 2026, which is 10% below its 10-year median of 5.42. GuruFocus rates CMS with a GF Score™ of 75/100 and a GF Value™ of $76.06 (Fairly Valued). The stock has 10 warning signs investors should review. Among 447 Utilities - Regulated companies, CMS Energy ranks worse than 70.02% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for CMS Energy's Debt-to-EBITDA or its related term are showing as below:
CMS'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 4.76 Med: 5.42 Max: 5.99
Current: 5.6
During the past 13 years, the highest Debt-to-EBITDA Ratio of CMS Energy was 5.99. The lowest was 4.76. And the median was 5.42.
CMS's Debt-to-EBITDA is ranked worse than 70.02% of 447
companies
in the Utilities - Regulated industry
Industry Median: 4.01
vs CMS: 5.60
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
CMS Energy Debt-to-EBITDA Related Terms
CMS Energy Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for CMS Energy's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Electric subindustry, CMS Energy's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CMS Energy Debt-to-EBITDA vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, CMS Energy's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where CMS Energy's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
CMS Energy (CMS) has a Debt-to-EBITDA of 4.88 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on CMS Energy. This is 10% below median its historical median of 5.42. Over the past decade, CMS Energy's Debt-to-EBITDA has ranged from 4.76 to 5.99. According to the industry distribution chart, CMS Energy ranks #313 out of 447 companies in the Utilities - Regulated industry, placing it in the top 70%.
Is CMS Energy's Debt-to-EBITDA too high?
CMS Energy's current Debt-to-EBITDA of 4.88 is 10% below median its 10-year median of 5.42. Over the past 10 years, this metric has ranged from a low of 4.76 to a high of 5.99. The Utilities - Regulated industry median Debt-to-EBITDA is 4.01. CMS Energy's value of 4.88 is 21.7% above this industry median. Based on the distribution chart, CMS Energy ranks #313 out of 447 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, CMS Energy has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CMS Energy's Debt-to-EBITDA compare to ES and PPL?
According to the Utilities - Regulated industry distribution chart, CMS Energy ranks #313 out of 447 companies for Debt-to-EBITDA. This places CMS Energy in the lower half of its industry. The industry median Debt-to-EBITDA is 4.01. CMS Energy's value of 4.88 is 21.7% above this benchmark. Historically, CMS Energy's own Debt-to-EBITDA has ranged from 4.76 to 5.99 over the past decade. While the company's 10-year median is 5.42 vs. the industry median of 4.01, CMS Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Utilities - Regulated company?
The median Debt-to-EBITDA among Utilities - Regulated companies is 4.01, based on 447 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CMS Energy's current Debt-to-EBITDA of 4.88 is 21.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on CMS Energy. For the Utilities - Regulated industry, the median Debt-to-EBITDA is 4.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CMS Energy's current Debt-to-EBITDA is 4.88, which is 10% below median its own 10-year median of 5.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CMS Energy stock overvalued right now?
Based on GuruFocus' analysis, CMS Energy (CMS) is currently considered Fairly Valued. The stock's GF Value™ is $76.06, compared to a current price of $75.40 — trading 0.9% below its estimated fair value. The current Debt-to-EBITDA is 4.88, which is 10% below median its 10-year median of 5.42 and 21.7% above the Utilities - Regulated industry median of 4.01. CMS Energy's overall GF Score™ is 75/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For CMS Energy (CMS), the current Debt-to-EBITDA is 4.88 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CMS Energy (CMS) Overvalued in 2026?
Based on GuruFocus' analysis, CMS Energy stock appears to be undervalued.
The current stock price of $75.40 is trading 0.9% below its estimated GF Value™ of $76.06.
GuruFocus considers CMS Energy to be Fairly Valued.
Key valuation signals for CMS:
Debt-to-EBITDA: 4.88 (10% below median its 10-year median of 5.42)
GF Value™: $76.06 vs. price of $75.40 (0.9% below fair value)
Industry Position: 21.7% above the Utilities - Regulated median (#313 of 447)
No single metric tells the full story. See the CMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CMS Energy is an energy holding company with three principal businesses. Its regulated utility, Consumers Energy, provides regulated natural gas service to 1.8 million customers and electric service to 1.9 million customers in Michigan. NorthStar Clean Energy, formerly CMS Enterprises, is engaged in wholesale power generation, including contracted renewable energy. CMS sold EnerBank in October 2021.
75GF Score
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