On Dec 1, 2014, shares of CMS Energy Corporation (CMS) touched a 52-week high of $33.48. The share price finally closed at $33.25, up around 0.5% from Friday’s closing.
CMS Energy’s systematic investments in infrastructure projects, focus on renewable ventures and a stable liquidity profile have helped to attain the 52-week high mark. Going forward too, these factors are expected to drive the company’s future growth.
CMS Energy is currently focused on improving its utility systems and increasing its existing capacity. The company’s projected capital expenditure between 2015 and 2024 came in at a total of $15.5 billion. A major part of this fund is expected to be allocated for improving electric circuits and substations, replacing aged poles and expanding gas operations. These initiatives will enable CMS Energy to provide reliable services to its customers.
In addition, the company is enhancing its renewable portfolio to realize its target of generating 10% electricity from these alternative sources by 2015. CMS Energy has recently completed the construction of 111-megawatts Cross Winds Energy Park.
CMS Energy maintains a favorable liquidity position backed by a strong cash generating capacity. The company’s cash balance as of Sep 30, 2014 stood at around $0.49 billion and operating cash flow during the first nine months of 2014 was roughly $0.96 billion. A steady financial health enables the company to follow its capital spending program.
CMS Energy also follows several initiatives, including regular payment of dividends and an effective share repurchase program, to boost shareholder wealth. The company distributed around $0.22 billion as dividends in the first nine months of 2014 and repurchased 25,271 shares of the common stock during third-quarter 2014.
CMS Energy currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Black Hills Corporation (BKH), PG&E Corporation (PCG) and Consolidated Edison, Inc. (ED). Black Hills and PG&E Corporation hold a Zacks Rank #1 (Strong Buy) while Consolidated Edison carries a Zacks Rank #2 (Buy).
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