WallStSmart

CMS Energy Corporation 5.6% JRSUB NT 78 (CMSA)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SO leads profitability with a 14.5% profit margin vs 0.0%. CMSA trades at a lower P/E of 11.9x. SO earns a higher WallStSmart Score of 56/100 (C).

CMSA

Avoid

20

out of 100

Grade: F

Growth: 3.3Profit: 4.5Value: 6.7Quality: 3.0
Piotroski: 4/9Altman Z: 0.65

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CMSA.

SOSignificantly Overvalued (-47.7%)

Margin of Safety

-47.7%

Fair Value

$62.70

Current Price

$92.60

$29.90 premium

UndervaluedFair: $62.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMSA1 strengths · Avg: 10.0/10
P/E RatioValuation
11.9x10/10

Attractively priced relative to earnings

SO3 strengths · Avg: 8.3/10
Market CapQuality
$102.01B9/10

Large-cap with strong market position

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

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

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

SO4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Free Cash FlowQuality
$-1.72B2/10

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 : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.

Bear Case : CMSA

The primary concerns for CMSA are Revenue Growth, EPS Growth, Profit Margin. Debt-to-equity of 2.02 is elevated, increasing financial risk.

Bear Case : SO

The primary concerns for SO are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

SO is growing revenue faster at 8.0% — sustainability is the question.

CMSA generates stronger free cash flow (-334M), providing more financial flexibility.

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

Bottom Line

SO scores higher overall (56/100 vs 20/100). Both earn "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 Corporation 5.6% JRSUB NT 78

UTILITIES · MULTILINE UTILITIES · USA

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

Southern Company

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.

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