CMS EnergyCMS -0.75%75 Return-on-Tangible-Equity is 14.62% as of Mar. 2026, which is 12% above its 10-year median of 13.09. GuruFocus rates CMS with a GF Score™ of 75/100 and a GF Value™ of $76.06 (Fairly Valued). The stock has 11 warning signs investors should review. Among 499 Utilities - Regulated companies, CMS Energy ranks better than 56.11% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. CMS Energy's annualized net income for the quarter that ended in Mar. 2026 was $1,360 Mil. CMS Energy's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $9,305 Mil. Therefore, CMS Energy's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.62%.
The historical rank and industry rank for CMS Energy's Return-on-Tangible-Equity or its related term are showing as below:
CMS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.58 Med: 13.09 Max: 22.31
Current: 12.52
During the past 13 years, CMS Energy's highest Return-on-Tangible-Equity was 22.31%. The lowest was 10.58%. And the median was 13.09%.
CMS's Return-on-Tangible-Equity is ranked better than 56.11% of 499
companies
in the Utilities - Regulated industry
Industry Median: 10.9
vs CMS: 12.52
CMS Energy (NYSE:CMS) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
CMS Energy Return-on-Tangible-Equity Related Terms
CMS Energy Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for CMS Energy's Return-on-Tangible-Equity 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.
CMS vs ES, PPL, FE: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Electric subindustry, CMS Energy's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, CMS Energy's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where CMS Energy's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.62% mean?
CMS Energy (CMS) has a Return-on-Tangible-Equity of 14.62% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CMS Energy and its competitors. This is 12% above median its historical median of 13.09. Over the past decade, CMS Energy's Return-on-Tangible-Equity has ranged from 10.58 to 22.31. According to the industry distribution chart, CMS Energy ranks #219 out of 499 companies in the Utilities - Regulated industry, placing it in the top 43.9%.
Is CMS Energy's Return-on-Tangible-Equity too high?
CMS Energy's current Return-on-Tangible-Equity of 14.62% is 12% above median its 10-year median of 13.09. Over the past 10 years, this metric has ranged from a low of 10.58 to a high of 22.31. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.90. CMS Energy's value of 14.62% is 34.1% above this industry median. Based on the distribution chart, CMS Energy ranks #219 out of 499 companies in the Utilities - Regulated industry, which is above 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 Return-on-Tangible-Equity compare to ES and PPL?
According to the Utilities - Regulated industry distribution chart, CMS Energy ranks #219 out of 499 companies for Return-on-Tangible-Equity. This puts CMS Energy in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.90. CMS Energy's value of 14.62% is 34.1% above this benchmark. Historically, CMS Energy's own Return-on-Tangible-Equity has ranged from 10.58 to 22.31 over the past decade. While the company's 10-year median is 13.09 vs. the industry median of 10.90, 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 Return-on-Tangible-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.90, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CMS Energy's current Return-on-Tangible-Equity of 14.62% is 34.1% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CMS Energy and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CMS Energy's current Return-on-Tangible-Equity is 14.62%, which is 12% above median its own 10-year median of 13.09. 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 $78.22 — trading 2.8% above its estimated fair value. The current Return-on-Tangible-Equity is 14.62%, which is 12% above median its 10-year median of 13.09 and 34.1% above the Utilities - Regulated industry median of 10.90. CMS Energy's overall GF Score™ is 75/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For CMS Energy (CMS), the current Return-on-Tangible-Equity is 14.62% 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 overvalued.
The current stock price of $78.22 is trading 2.8% above its estimated GF Value™ of $76.06.
GuruFocus considers CMS Energy to be Fairly Valued.
Key valuation signals for CMS:
Return-on-Tangible-Equity: 14.62% (12% above median its 10-year median of 13.09)
GF Value™: $76.06 vs. price of $78.22 (2.8% above fair value)
Industry Position: 34.1% above the Utilities - Regulated median (#219 of 499)
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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