Cms Energy Stock Analysis

CMS Energy Corp

Stock Analysis

Security Analysis

Prof. Simon

Academic Honesty Policy

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Group Member 1Samia | Phone Number(786) 973-3180 | Panther IDID # 4006721 |

Group Member 2Xenia Sepulveda | Phone Number(305) 972-3473 | Panther IDID #3020294 |

Group Member 3Francisco Sanchez | Phone Number(786) 253-3481 | Panther IDID # 3615867 |

Group Member 4Robin | Phone Number(786) 503-4313 | Panther IDID # 4025031 |

Date of Submission12/2/13 | Title of AssignmentStock Analysis Research Project |

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Recommendation: Buy CMS stock

After a deep analysis, it has been identified that CMS energy has many strengths that definitely makes it a buy. CMS energy has a good level of cash flow from operation. The price of the stock of the company also has increased this last year. And finally, their return of equity is quite important. All of these strengths outweigh some negative aspects such as the fact that the net income of CMS knew a sub par growth. Both DDM and DCF Model show the stock is under valued. The Dividend Discount Model states that the stock should have a theoretical price of $28.64, while its closing price Friday was $26.54. Ratios demonstrate that CMS is trading below its fundamentals, and therefore is valued as a Value Stock. Net operating cash flow increased by 355.55% to $23.00 million compared to the same quarter last year....