CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 (CMSC)

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see a regulated utility with a durable but unspectacular record. The filed figures show fiscal 2025 revenue of $8.3B, net income of $1.1B and diluted EPS of $3.53, up from fiscal 2024's $7.3B, $1.0B and $3.33 and fiscal 2023's $7.3B, $887.0M and $3.01. That is progress, but FairStock's Lynch category is SLOW GROWER, based on 5-year profit growth of 7.2% a year and revenue growth of 5.9%. The latest quarter deserves attention: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.8B, net income $120.0M and diluted EPS $0.37, versus fiscal Q2 2025 revenue of $1.8B, net income $201.0M and diluted EPS $0.66. Flat revenue with sharply lower profit is not comforting. Fiscal Q1 2026 was stronger at $2.7B revenue, $340.0M net income and $1.10 EPS, so the trend is uneven. For the 5.875% junior subordinated notes due 2078, the provided data lacks interest coverage, asset quality and credit metrics; FairStock's P/E, P/B, ROE and ROCE are N/A. The note price was $19.89 on 2026-10-16, within a 52-week range of $19.46-$24.42, near the low. A low price can create margin of safety only if the obligation is sound; without yield-to-maturity and credit terms I cannot call it cheap. The utility's steady earnings are the main support.

In plain English: CMS Energy is a utility company. This security is a bond-like note tied to CMS Energy, not common stock. The business has grown revenue and profit over the past few years, but the latest quarter was weaker; at $19.89 the note is near the low end of its recent price range, and the data given is not enough to say whether it is cheap or expensive.

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Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer