Business Analysis of CMS Energy

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of CMS Energy

CMS ENERGY

Business Overview

CMS Energy Corporation operates as an energy company primarily in Michigan. It operates through three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment engages in the generation, purchase, transmission, distribution, and sale of electricity. It generates electricity through fossil-fuel-fired plants, as well as renewable energy and nuclear sources. This segment's transmission and distribution system includes 214 miles of transmission overhead lines; 188 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,430 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 56,067 miles of electric distribution overhead lines; 10,532 miles of underground distribution lines; and substations. The Gas Utility segment is involved in the purchase, transmission, storage, distribution, and sale of natural gas. This segment's gas transmission, storage, and distribution system comprises 1,670 miles of transmission lines; 15 gas storage fields; 27,920 miles of distribution mains; and 8 compressor stations. The Enterprises segment engages in the independent power production and marketing activities; and development of renewable generation. As of December 31, 2016, this segment had ownership interests in independent power plants totaling 1,177 megawatts. The company also operates an industrial bank providing unsecured consumer installment loans for financing home improvements. It serves 1.8 million electric customers and 1.8 million gas customers, including residential, commercial, and diversified industrial customers in Michigan's Lower Peninsula. CMS Energy Corporation was founded in 1987 and is headquartered in Jackson, Michigan.

CMS Energy

CMS Energy


R&P Rank: 426
Sector: Utilities
Industry:Gas, Water, & Multiutilities
H.Q Location:Michigan
Website: www.cmsenergy.com
Company Address:
ONE ENERGY PLAZA, JACKSON MI 49201
Ph:517-788-0550

Business Analysis of CMS Energy

The Utilities Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how CMS Energy compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by CMS Energy to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of CMS Energy with an interactive chart.

  1. Revenue Growth: CMS Energy reported a revenue growth of -0.9% year-on-year during 2016. Gas, Water, & Multiutilities Industry grew at -0.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, CMS Energy spent 62.7% of its total revenues on COGS. Gas, Water, & Multiutilities industry average (COGS share of revenue) in the same period was 63.9%
  3. R&D share of Revenues: CMS Energy R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: CMS Energy SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, CMS Energy spent 9.8% of its total revenues on Inventories. Gas, Water, & Multiutilities industry average Inventory spending in the same period was 7.3%
  6. Accounts Payable share of Revenues: As a percentage of revenue, CMS Energy invested 9.5% of its total revenues on Accounts Payable (A/P) Gas, Water, & Multiutilities industry average Accounts Payable investment in the same period was 11.4%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, CMS Energy invested 33.3% of its total revenues on Accounts Receivable (A/R). Gas, Water, & Multiutilities industry average Accounts Receivable investment in the same period was 15.4%
  8. PP&E share of Revenues: As a percentage of revenue, CMS Energy invested 245.6% of its total revenues on Property, Plants, and Equipments (PP&E). Gas, Water, & Multiutilities industry average PPE investment in the same period was 281.2%
  9. Intangibles share of Revenues: CMS Energy Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: CMS Energy Net Margins in the year 2016 were 8.6%. Gas, Water, & Multiutilities industry average Net Margins in the same period were 8.6%

Sector and Industry Association of CMS Energy

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

CMS Energy is associated with Utilities Sector and Gas, Water, & Multiutilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of CMS Energy

With $6.4 billion revenues, CMS Energy ranked number 9 of all the companies in the US Gas, Water, & Multiutilities industry. There were a total of 47 public companies in the US Gas, Water, & Multiutilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Gas, Water, & Multiutilities industry by revenues during 2016 were:

  1. Exelon ($31.4 billion)
  2. Duke Energy ($22.7 billion)
  3. PG&E ($17.7 billion)
  4. Consolidated Edison ($12.1 billion)
  5. Xcel Energy ($11.1 billion)
  6. Sempra Energy ($10.2 billion)
  7. Public Service Enterprise Group ($9.1 billion)
  8. WEC Energy Group ($7.5 billion)
  9. CMS Energy ($6.4 billion)
  10. Ameren ($6.1 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of CMS Energyand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of cms-energy

Sempra Energy (SRE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Sempra Energy with $10 billion revenues in the year 2016 was the number 6 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Sempra Energy and identify growth and cost optimization opportunities of Sempra Energy

Public Service Enterprise Group (PEG) Business Analysis – Analyze Historical Performance,...

Public Service Enterprise Group Inc with $9 billion revenues in the year 2016 was the number 7 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Public Service Enterprise Group and identify growth and cost optimization opportunities of Public Service Enterprise Group

WEC Energy Group (WEC) Business Analysis – Analyze Historical Performance, Strategic...

WEC Energy Group, Inc. with $7 billion revenues in the year 2016 was the number 8 Gas, Water, & Multiutilities company. Read this report to know the top competitors of WEC Energy Group and identify growth and cost optimization opportunities of WEC Energy Group

Ameren (AEE) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Ameren Corp with $6 billion revenues in the year 2016 was the number 10 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Ameren and identify growth and cost optimization opportunities of Ameren

UGI (UGI) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

UGI Corp with $6 billion revenues in the year 2016 was the number 11 Gas, Water, & Multiutilities company. Read this report to know the top competitors of UGI and identify growth and cost optimization opportunities of UGI

NiSource (NI) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

NiSource Inc with $4 billion revenues in the year 2016 was the number 12 Gas, Water, & Multiutilities company. Read this report to know the top competitors of NiSource and identify growth and cost optimization opportunities of NiSource

Revenues Analysis

CMS Energy (CMS) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of CMS Energy Corp (CMS) from 2012 to 2016. CMS Energy generated a total of $6.4 billion revenues during 2016. CMS Energy reported a revenue growth of -0.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

CMS Energy (CMS) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of CMS Energy Corp (CMS) from 2002 to 2016. CMS Energy generated a total of $6.4 billion revenues during 2016. CMS Energy reported a revenue growth of -0.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

CMS Energy (CMS) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of CMS Energy Corp (CMS) revenue growth with Gas, Water, & Multiutilities industry growth during the last five years from 2012 to 2016. CMS Energy reported a revenue growth of -0.9% year-over-year during 2016. The Gas, Water, & Multiutilities industry growth was -0.4% year-over-year during 2016. CMS Energy growth was slower than the industry during 2016.

Profit Analysis

CMS Energy (CMS) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of CMS Energy Corp (CMS) from 2012 to 2016. CMS Energy reported a total net income of $551