CMS Energy Corporation — Earnings Quality Grade F
CMS · Utilities
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 56 days, change +5 days YoY
AR outpaced revenue for 2 consecutive years
Revenue grew 13.6% but CFFO declined -5.7%
Expense Quality
Inventory 2.9% vs COGS 16.0%. Normal
CapEx growth 27.1% vs revenue 13.6%. Normal
Insufficient data
Gross margin 41.5%, change -1.2pp. Stable
Cash Flow Quality
CFFO/NI = 2.09. Profits backed by cash
FCF < 50% of Net Income for 3 years
Accruals ratio = -2.9%. Low accruals
Cash $0.5B covers only 3% of debt $18.9B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 5.6x (>4x). Financial stress
Other assets 3.6% vs revenue 13.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
No goodwill
Manipulation Score
Insufficient data
Portfolio monitoring
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Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25