CMSNEUTRAL

CMS Return on Equity (ROE) Analysis

9.2%

Updated 153h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity — a 9.2% ROE means CMS earns $0.092 for every $1 of equity.

Sector Performance

35th percentile

CMS

9.2%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

10.4%(Jul 2026)

↓ Declining

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity — a 9.2% ROE means CMS earns $0.092 for every $1 of equity.

That figure sits below the sector median of 13.3%, placing CMS in the 35th percentile among sector peers, so most comparable companies convert equity into profit more efficiently. Trend data are incomplete: the year-over-year change is not available, and the eight-quarter trend is not available; however, the quarter-over-quarter change shows ROE fell from 10.4% to 9.2%, a decline of 11.5%. The combination of a below-median ROE and a recent quarterly drop points to weaker profitability relative to peers and a possible erosion of returns, adding near-term risk for shareholders. This metric contradicts the overall NEUTRAL verdict, because the level and direction suggest underperformance rather than a balanced risk-return profile.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CMS?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are CMS's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.