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Evergy (EVRG)
NASDAQ:EVRG
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Evergy
(NASDAQ:EVRG)73Outperform
Positive Factors
Business Opportunities
The company has over 20 customers with more than 6 gigawatts of incremental demand in their pipeline, indicating strong future business opportunities.
Financial Performance
EVRG's updated capital plan and visible load pipeline support the view that EPS growth will accelerate above 4-6% guidance.
Negative Factors
Financing Costs
Share price decline since November update increases dilution from equity assumptions, and the continued rise in 10 year treasury rates increases debt financing costs.
Evergy (EVRG) vs. S&P 500 (SPY)
Market Cap
$15.12B
Dividend Yield3.95%
Average Volume (3M)2.18M
Price to Earnings (P/E)17.4
Beta (1Y)0.35
Revenue Growth5.73%
EPS Growth19.34%
CountryUS
Employees4,658
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)3.79
Shares Outstanding230,009,340
10 Day Avg. Volume2,972,540
30 Day Avg. Volume2,181,711
Financial Highlights & Ratios
PEG Ratio0.90
Price to Book (P/B)N/A
Price to Sales (P/S)2.59
Price to Cash Flow (P/CF)9.60
P/FCF Ratio7.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$70.75Price Target Upside7.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Evergy Business Overview & Revenue Model
Company DescriptionEvergy, Inc. (EVRG) is a leading utility company that provides electricity services to residential, commercial, and industrial customers in Kansas and Missouri. As a prominent player in the utilities sector, Evergy is committed to delivering safe, reliable, and sustainable energy solutions. The company operates an extensive network of power plants, transmission lines, and distribution systems, ensuring that its customers have access to consistent and affordable electricity. Evergy focuses on integrating renewable energy sources and modernizing its infrastructure to enhance efficiency and environmental sustainability.
How the Company Makes MoneyEvergy makes money primarily through the generation, transmission, and distribution of electricity to a diverse customer base in its service areas. The company's revenue model is centered around charging customers for the electricity consumed, which is measured in kilowatt-hours (kWh). Rates are typically regulated by state public utility commissions, ensuring a balance between affordability for consumers and fair returns for the company. Key revenue streams include residential, commercial, and industrial electricity sales. Additionally, Evergy invests in renewable energy projects and infrastructure upgrades, which may be supported by government incentives or partnerships aimed at fostering sustainable energy development. The company's financial performance is also influenced by factors such as weather conditions, energy demand, and regulatory changes.
Evergy Financial Statement Overview
Summary
Evergy showcases strong profitability and a stable balance sheet. The increase in net income and solid EBIT margin highlight efficient cost management. However, inconsistent revenue growth and negative free cash flow due to high capital expenditures present challenges.Income Statement
Evergy demonstrates strong profitability with a consistent increase in net income and a solid EBIT margin. The net profit margin improved from 13.3% in 2023 to 14.9% in 2024, indicating efficient cost management. However, revenue growth has been inconsistent over the years, with a slight decline from 2022 to 2023 but a rebound in 2024.75
Positive
Balance Sheet
The balance sheet is healthy with a strong equity base. The debt-to-equity ratio decreased to 0.052 in 2024, showcasing improved leverage management. However, the equity ratio slightly decreased from 29.96% in 2023 to 30.42% in 2024, reflecting a stable capital structure. Return on equity is robust, enhancing shareholder value.70
Positive
Cash Flow
Operating cash flow remains strong but free cash flow has been negative, primarily due to high capital expenditures. The operating cash flow to net income ratio is healthy, indicating good cash conversion from earnings. However, the negative free cash flow to net income ratio suggests a need for careful capital management.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.85B | 5.51B | 5.86B | 5.59B | 4.91B | Gross Profit |
| 4.89B | 1.69B | 2.63B | 2.63B | 2.39B | EBIT |
| 1.47B | 1.28B | 1.27B | 1.35B | 1.14B | EBITDA |
| 2.64B | 2.42B | 2.19B | 2.31B | 2.04B | Net Income Common Stockholders |
| 873.50M | 731.30M | 752.70M | 879.70M | 618.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 100.00K | 27.70M | 25.20M | 26.20M | 144.90M | Total Assets |
| 32.28B | 32.24B | 29.49B | 28.52B | 27.11B | Total Debt |
| 508.70M | 13.27B | 12.04B | 11.17B | 10.32B | Net Debt |
| 508.60M | 13.25B | 12.01B | 11.14B | 10.18B | Total Liabilities |
| 22.29B | 22.56B | 20.00B | 19.28B | 18.40B | Stockholders Equity |
| 9.81B | 9.66B | 9.48B | 9.24B | 8.73B |
| Cash Flow | Free Cash Flow | |||
| -234.60M | -353.80M | -364.60M | -620.80M | 193.50M | Operating Cash Flow |
| 1.04B | 1.98B | 1.80B | 1.35B | 1.75B | Investing Cash Flow |
| -1.20B | -2.47B | -2.15B | -1.91B | -1.53B | Financing Cash Flow |
| 151.70M | 494.00M | 349.30M | 443.40M | -98.40M |
Evergy Technical Analysis
Neutral
65.80
Price Trends
64.44
Positive
63.10
Positive
59.58
Positive
Market Momentum
0.71
Positive
45.39
Neutral
5.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVRG, the sentiment is Neutral. The current price of 65.8 is below the 20-day moving average (MA) of 67.32, above the 50-day MA of 64.44, and above the 200-day MA of 59.58, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 5.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EVRG.
Evergy Risk Analysis
Evergy disclosed 24 risk factors in its most recent earnings report. Evergy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Evergy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $89.47B | 20.27 | 9.10% | 3.61% | 4.46% | 54.09% | |
77 Outperform | $97.23B | 22.20 | 13.61% | 3.25% | 5.83% | 10.23% | |
74 Outperform | $35.63B | 19.26 | 8.44% | 3.31% | 4.23% | -27.02% | |
73 Outperform | $15.12B | 17.35 | 8.91% | 3.95% | 5.73% | 19.34% | |
73 Outperform | $54.70B | 18.37 | 11.37% | 3.53% | 2.76% | 31.53% | |
69 Neutral | $38.87B | 19.68 | 10.43% | 3.24% | -5.25% | 7.11% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
EVRG
Evergy
65.80
15.85
31.73%
AEP
American Electric Power
104.62
24.00
29.77%
ED
Consolidated Edison
103.64
15.90
18.12%
DUK
Duke Energy
116.74
24.47
26.52%
SO
Southern Co
91.40
23.96
35.53%
XEL
Xcel Energy
68.00
17.05
33.46%
Evergy Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -4.78% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
Evergy's earnings call for Q4 2024 highlighted strong earnings growth, successful regulatory outcomes, and significant economic development wins, despite challenges from weather impacts and increased operating expenses. The company is optimistic about future growth driven by a robust economic development pipeline and increased capital investments, though it will require additional equity issuances.Highlights
Strong Earnings Growth
Reported adjusted earnings of $3.81 per share for 2024, up from $3.54 per share in 2023, driven by strong cost management and load growth.
Capital Investment and Infrastructure Modernization
Invested $2.3 billion in infrastructure to modernize the grid and replace aging equipment as part of a five-year $17.5 billion capital plan.
Regulatory and Legislative Success
Successful passage of House Bill 2527 in Kansas and a unanimous settlement in Missouri West rate case, supporting infrastructure investments.
Economic Development Wins
Major economic development wins with companies like Google, Panasonic, Meta creating a demand representing 800 megawatts of load.
Robust Economic Development Pipeline
Economic development pipeline grew from 6 gigawatts to over 11 gigawatts, reflecting the competitiveness of the region.
Dividend Increase
Raised dividend by 4% to an annualized $2.67, consistent with a 60% to 70% target payout ratio.
Lowlights
Weather Impact on Earnings
Cooler summer and mild winter led to a 5% decrease in cooling degree days and a 4% decrease in heating degree days, causing a $0.13 decline in EPS.
Increased Operating Expenses
Operations and maintenance expenses drove a $0.05 negative variance for the year, with higher depreciation and interest expense leading to a $0.17 decrease in EPS.
Need for Additional Equity Issuances
Projected equity issuances across 2026 to 2029 increased to $2.8 billion, a $600 million increase over prior forecast due to capital investment increases.
Company Guidance
During the Q4 2024 earnings call, Evergy, Inc. provided guidance and highlighted key metrics that reflect a robust operational and financial outlook. The company reported adjusted earnings of $3.81 per share for 2024, an increase from $3.54 per share in the previous year, driven by strong cost management and investment in infrastructure improvements. Despite weather challenges, Evergy executed a $2.3 billion capital investment plan focusing on grid modernization and reliability. Looking ahead, the company reaffirmed its 2025 adjusted EPS guidance range of $3.92 to $4.12 per share, with a midpoint of $4.02, and maintained a long-term growth target of 4% to 6% through 2029. The capital expenditure forecast from 2025 to 2029 was updated to $17.5 billion, supporting an anticipated average rate base growth of 8.5% annually. Evergy also reported a strong economic development pipeline, with potential demand growth fueled by major projects representing an additional 800 megawatts of load, underscoring a weather-normalized demand growth forecast of 2% to 3% through 2029.Evergy Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Evergy Reports Strong 2024 Financial Results and Future Plans
Positive
Feb 27, 2025
Evergy reported its 2024 financial results, showing an increase in GAAP earnings per share to $3.79 from $3.17 in 2023, and adjusted earnings per share to $3.81 from $3.54. The company declared a quarterly dividend of $0.6675 per share and raised its capital investment plan for 2025-2029 to $17.5 billion. Evergy reaffirmed its 2025 earnings guidance and highlighted the positive impact of new retail rates and infrastructure investments, despite challenges such as mild weather and increased expenses. The passage of House Bill 2527 in Kansas and a settlement agreement in Missouri reflect strong regulatory support and stakeholder relationships, positioning Evergy for future growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.