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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
CMS Energy's Sloan Ratio for the quarter that ended in Mar. 2026 was 8.43%.
As of Mar. 2026, CMS Energy has a Sloan Ratio of 8.43%, indicating the company is in the safe zone and there is no funny business with accruals.
CMS Energy (NYSE:CMS) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, CMS Energy has a Sloan Ratio of 8.43%, indicating the company is in the safe zone and there is no funny business with accruals.
CMS Energy Sloan Ratio % Related Terms
CMS Energy Sloan Ratio % Historical Data
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The historical data trend for CMS Energy's Sloan Ratio % 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 Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, CMS Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CMS Energy's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
CMS Energy's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
CMS Energy's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 201 (Jun. 2025 ) + 277 (Sep. 2025 ) + 289 (Dec. 2025 ) + 340 (Mar. 2026 ) = $1,107 Mil.
CMS Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 383 (Jun. 2025 ) + 343 (Sep. 2025 ) + 478 (Dec. 2025 ) + 736 (Mar. 2026 ) = $1,940 Mil.
CMS Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -1080 (Jun. 2025 ) + -1046 (Sep. 2025 ) + -1112 (Dec. 2025 ) + -993 (Mar. 2026 ) = $-4,231 Mil.
* 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 Energy (CMS) has a Sloan Ratio % of 8.43% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on CMS Energy and its competitors.
Is CMS Energy's Sloan Ratio % too high?
CMS Energy's current Sloan Ratio % is 8.43%. Overall, CMS Energy has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CMS Energy's Sloan Ratio % compare to ES and PPL?
CMS Energy's Sloan Ratio % of 8.43% can be compared against companies in the Utilities - Regulated industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Utilities - Regulated company?
A good Sloan Ratio % depends on the Utilities - Regulated industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on CMS Energy and its competitors. CMS Energy's current Sloan Ratio % is 8.43%. 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 $75.17 — trading 1.2% below its estimated fair value. The current Sloan Ratio % is 8.43%. CMS Energy's overall GF Score™ is 76/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For CMS Energy (CMS), the current Sloan Ratio % is 8.43% 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 $75.17 is trading 1.2% below its estimated GF Value™ of $76.06.
GuruFocus considers CMS Energy to be Fairly Valued.
Key valuation signals for CMS:
Sloan Ratio %: 8.43%
GF Value™: $76.06 vs. price of $75.17 (1.2% below fair value)
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.
76GF Score
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