CMS Energy Corporation 5.6% JRSUB NT 78 (CMSA): fair value, margin of safety and Wheel Score

Is CMSA undervalued?

CMSA has a margin of safety of 39%: the stock closed at 19.02 on 16 Oct 2026 against a GLS average fair value of 30.99. 4 of the 7 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.

The 7 models disagree widely: Lynch gives 7.49 while DCF gives 74.50. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files CMSA under Defensive: a low beta, a dividend and positive earnings.

Nine valuation models for CMSA

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is average - CMSA passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 4.6 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 3.8%, ROE 11.7%, ROA 2.7% - with debt at 2.07 times equity and negative free cash flow. Debt of 2.07 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

The dividend yield is 3.36% at a payout ratio of 67%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Residential Utility Services 55%, Commercial Utility Service 33%, Industrial Utility Service 12% (quarter Q2 FY2026).

Institutional ownership scores 3/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 39: No options

CMSA has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 20k shares a day on a market cap of $21.0B, with a beta of 0.49 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 12 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

CMS Energy Corporation 5.6% JRSUB NT 78 reports earnings on 22 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Regulated Electric

The 12 companies below are the closest to CMS Energy Corporation 5.6% JRSUB NT 78 by market cap within the Regulated Electric industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare CMSA with 7 of them   All Utilities stocks →