WallStSmart

CMS Energy Corp (CMSA)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SBS leads profitability with a 22.2% profit margin vs 0.0%. CMSA trades at a lower P/E of 12.3x. SBS earns a higher WallStSmart Score of 77/100 (B+).

CMSA

Avoid

20

out of 100

Grade: F

Growth: 3.3Profit: 4.0Value: 6.0Quality: 5.0

SBS

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 8.5Value: 5.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CMSA.

SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$33.63

$4.96 premium

UndervaluedFair: $28.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMSA1 strengths · Avg: 8.0/10
P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

SBS6 strengths · Avg: 9.7/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Revenue GrowthGrowth
43.9%10/10

Revenue surging 43.9% year-over-year

EPS GrowthGrowth
87.2%10/10

Earnings expanding 87.2% YoY

Market CapQuality
$118.61B9/10

Large-cap with strong market position

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

CMSA4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

SBS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.814/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
67.2x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-8.22B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CMSA

The strongest argument for CMSA centers on P/E Ratio.

Bull Case : SBS

The strongest argument for SBS centers on PEG Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 22.2% and operating margin at 34.6%. Revenue growth of 43.9% demonstrates continued momentum.

Bear Case : CMSA

The primary concerns for CMSA are Revenue Growth, EPS Growth, Return on Equity.

Bear Case : SBS

The primary concerns for SBS are Altman Z-Score, Piotroski F-Score, P/E Ratio. A P/E of 67.2x leaves little room for execution misses.

Key Dynamics to Monitor

CMSA profiles as a value stock while SBS is a growth play — different risk/reward profiles.

SBS is growing revenue faster at 43.9% — sustainability is the question.

CMSA generates stronger free cash flow (705M), providing more financial flexibility.

Monitor MULTILINE UTILITIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SBS scores higher overall (77/100 vs 20/100), backed by strong 22.2% margins and 43.9% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CMS Energy Corp

UTILITIES · MULTILINE UTILITIES · USA

CMS Energy Corporation is an energy company primarily in Michigan. The company is headquartered in Jackson, Michigan.

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR

UTILITIES · UTILITIES - REGULATED WATER · USA

Companhia de Saneamento Basico do Estado de So Paulo - SABESP provides water and sewerage services to residential, commercial, industrial and government clients. The company is headquartered in So Paulo, Brazil.

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