CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD)

Key Financials

AI Analysis

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

I approach CMSD as a long-dated credit-like obligation, not as common stock. The issuer is a utility, and the filed numbers show steady but unspectacular progress: FY2025 revenue was $8.3B, net income $1.1B, and diluted EPS $3.53, up from FY2023 revenue $7.3B, net income $887.0M, and EPS $3.01. FairStock’s Lynch classification is slow grower, with profit up 7.2% a year and revenue up 5.9% a year over five years. That is respectable for a utility but not a fast compounder. I cannot assess competitive moat rigorously because FairStock’s P/E, P/B, ROE, ROCE and D/E are N/A here. The latest filed quarter is a caution: in fiscal Q2 2026, revenue was $1.8B, net income $120.0M, and diluted EPS $0.37, versus fiscal Q2 2025 revenue $1.8B, net income $201.0M, and EPS $0.66. Revenue was flat and profit fell. At the 2026-10-16 close of $19.86, the note pays a 5.875% coupon and trades near its 52-week low of $19.59, well below the $24.76 high. That low price may offer compensation for long-dated junior risk, but without coverage, leverage, or note terms, I cannot establish a Graham-style margin of safety. I would need more evidence before calling it a bargain.

In plain English: CMS Energy is a utility company. This investment is one of its long-term debt securities paying 5.875% annual interest, and it trades at $19.86, near the bottom of its 52-week range of $19.59 to $24.76. The business looks stable but slow-growing, and with key financial measures missing, it is hard to say whether the price is cheap, fair, or expensive from the numbers given.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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