Evergy (EVRG) AI Stock Analysis

• Market Cap: $19.00B
• Dividend Yield: 3.72%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.15
• Revenue Growth: 0.11%
• EPS Growth: -0.52%
• Country: US
• Employees: 4,731
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.42
• Shares Outstanding: 230,281,590
• 10 Day Avg. Volume: 2,135,736
• 30 Day Avg. Volume: 2,109,716
• PEG Ratio: -9.25
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 2.82
• P/FCF Ratio: -22.23
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 5.82
• Enterprise Value/Gross Profit: 18.01
• Enterprise Value/Ebitda: 12.70
• 1Y Price Target: $86.67
• Price Target Upside: 5.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $86.00 ▲(4.24% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

EVRG scores mid-to-upper range: strong forward outlook from improved guidance and multi-year load/rate-base growth catalysts supports the score, while the financial profile is held back by negative free cash flow and leverage tied to elevated capital intensity. Technicals are supportive, and valuation is fair but not clearly cheap given the P/E despite a healthy dividend.

Positive Factors

Contracted large-load agreements

The 1.9 GW of signed ESAs provide multi-year revenue visibility tied to minimum-bill protections and ramp schedules, materially reducing merchant demand risk. For a regulated utility this underpins predictable cash flows, supports discrete rate-base additions, and strengthens long-term investment planning.

Regulatory and tariff wins

LLPS tariffs and Missouri SB 4 establish premium demand rates and supportive policy for infrastructure recovery. This structural regulatory support improves cost recovery, enhances returns on new large-customer investments, and reduces regulatory execution risk across the multi-year capital cycle.

Rate-base growth and growth targets

An accelerated $21.6B capital program driving ~11.5% annualized rate-base growth creates a durable earnings growth runway. With management-stated long-term EPS targets and explicit financing plans, the business shifts toward structural growth rather than pure maintenance spending, supporting returns over 2026–2030.

Negative Factors

Persistent negative free cash flow

Consistently negative free cash flow reflects heavy ongoing capital intensity; despite rising operating cash flow, FCF deficits necessitate external financing and limit internal funding capacity. Over time this constrains flexibility for discretionary investments, dividends, or balance-sheet de‑risking.

Elevated leverage

Leverage running above equity is typical for utilities but increases sensitivity to interest rates and refinancing cycles. Elevated debt levels reduce margin for error on credit metrics, limit capacity for incremental borrowing, and raise the stakes on execution of the large capex plan.

Large financing and execution risk

The $21.6B capex program requires substantial debt and equity issuance, exposing the company to execution, timing and market-access risks. Failure to secure cost-effective financing or schedule projects efficiently could elevate interest expense, dilute shareholders, and pressure credit metrics and rates.

Evergy Business Overview & Revenue Model

Company Description

Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Kansas and Missouri, the United States. It generates electricity through coal, hydroelectric, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. The company has approximately 10,100 circuit miles of transmission lines; 39,800 circuit miles of overhead distribution lines; and 13,000 circuit miles of underground distribution lines. It serves approximately 1,620,400 customers, including residences, commercial firms, industrials, municipalities, and other electric utilities. Evergy, Inc. was incorporated in 2017 and is headquartered in Kansas City, Missouri.

How the Company Makes Money

Evergy generates revenue primarily through the sale of electricity to its customers. The company operates under a regulated business model, where it earns a return on investment based on the rates approved by state utility commissions. Key revenue streams include residential, commercial, and industrial electricity sales, which are influenced by customer demand, energy consumption patterns, and seasonal fluctuations. Additionally, Evergy may generate income from ancillary services, such as energy efficiency programs and renewable energy credits. Partnerships with renewable energy developers and investments in infrastructure enhancements also contribute to its earnings. Regulatory frameworks and rate adjustments play a significant role in determining Evergy's profitability, alongside its strategic initiatives to optimize operational efficiency and expand its clean energy portfolio.

Evergy Financial Statement Overview

Summary

Steady regulated-utility revenue and solid profitability are positives, but persistent negative free cash flow from heavy CapEx and meaningfully leveraged capital structure temper the score. Reported data anomalies (notably in 2025 margins and debt) also reduce confidence in the trend quality.

Income Statement

Revenue has been relatively steady with modest growth most years, though the trajectory has had a couple of down years (2020 and 2023). Profitability looks solid for a regulated utility, with net margins generally in the low-to-mid teens and improving earnings versus 2023. A notable data inconsistency appears in 2025 (gross margin spikes and EBIT margin is shown as 0), which reduces confidence in that period’s margin quality and tempers the score.

Balance Sheet

Leverage appears elevated and fairly consistent from 2020–2024, with debt running above equity (debt-to-equity ~1.18–1.41), which is common in regulated utilities but still increases sensitivity to rates and refinancing. Equity returns are steady (roughly mid-to-high single digits), indicating stable profitability on the capital base. 2025 shows an unusually low debt figure versus prior years, suggesting either a one-time change or a data issue, so the balance sheet strength is scored as moderate rather than high.

Cash Flow

Operating cash flow is consistently strong and generally rising, supporting the core earnings profile. However, free cash flow is negative in most years (2021–2025) and has been meaningfully negative recently, implying heavy capital spending and/or investment needs typical of utilities. While 2025 shows stronger cash generation relative to net income, the persistent free-cash-flow deficits remain the key weakness.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.92B	5.82B	5.49B	5.86B	5.59B
Gross Profit	1.91B	1.90B	1.67B	1.70B	1.74B
EBITDA	2.71B	2.64B	2.42B	2.19B	2.32B
Net Income	855.60M	873.50M	731.30M	752.70M	879.70M
Balance Sheet
Total Assets	35.44B	32.28B	30.98B	29.49B	28.52B
Cash, Cash Equivalents and Short-Term Investments	25.40M	22.00M	27.70M	25.20M	26.20M
Total Debt	15.44B	14.07B	13.15B	12.04B	11.17B
Total Liabilities	25.17B	22.29B	21.29B	20.00B	19.28B
Stockholders Equity	10.22B	9.96B	9.66B	9.48B	9.24B
Cash Flow
Free Cash Flow	-751.70M	-352.90M	-353.80M	-364.60M	-620.80M
Operating Cash Flow	2.05B	1.98B	1.98B	1.80B	1.35B
Investing Cash Flow	-2.57B	-2.26B	-2.47B	-2.15B	-1.91B
Financing Cash Flow	522.00M	280.30M	494.00M	349.30M	443.40M

Evergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVRG, the sentiment is Positive. The current price of 82.5 is above the 20-day moving average (MA) of 78.85, above the 50-day MA of 75.87, and above the 200-day MA of 72.23, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 74.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVRG.

Evergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	68 Neutral	$28.64B	23.49	8.15%	3.13%	8.42%	32.48%
EVRG	67 Neutral	$19.00B	22.42	8.48%	3.72%	0.11%	-0.52%
CMS	66 Neutral	$23.53B	21.65	12.33%	3.10%	10.96%	-0.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
LNT	65 Neutral	$18.42B	22.89	11.30%	3.11%	7.76%	23.48%
PNW	65 Neutral	$11.68B	20.03	8.62%	4.15%	5.70%	-8.25%
OGE	64 Neutral	$9.98B	20.71	9.79%	3.82%	18.03%	29.46%

Evergy Corporate Events

Evergy Outlines 2026 Guidance and Long-Term Growth Plan

On February 19, 2026, Evergy reported full-year 2025 GAAP earnings of $855.6 million, or $3.66 per share, down from $3.79 in 2024, while adjusted EPS edged up to $3.83 from $3.81 as regulated investment recovery and weather-normalized demand growth offset higher depreciation, operations, maintenance and interest costs amid milder weather. The utility declared a quarterly dividend of $0.695 per share, highlighted approval of new large load power service tariffs in Kansas and Missouri, announced electric service agreements for four major customer projects, and unveiled a $21.6 billion 2026-2030 capital plan alongside 2026 adjusted EPS guidance of $4.14-$4.34 and a 6%-8%+ long-term earnings growth target through 2030, underscoring expectations for stronger growth, increased large-customer load and potential affordability benefits for existing customers.

The most recent analyst rating on (EVRG) stock is a Hold with a $88.00 price target. To see the full list of analyst forecasts on Evergy stock, see the EVRG Stock Forecast page.

Evergy Secures New $500 Million Term Loan Facility

On February 11, 2026, Evergy, Inc. entered into a new $500 million unsecured term loan credit agreement with a syndicate of lenders led by Wells Fargo Bank, replacing a smaller $55 million unsecured term loan arranged in January 2026. The new facility, which matures on February 10, 2027, includes customary covenants capping the ratio of total indebtedness to total capitalization at 0.65 to 1.00 on a consolidated basis.

Evergy plans to use the proceeds for working capital, capital expenditures, permitted acquisitions and other general corporate purposes, including repaying the prior term loan in full. Concurrent with the new agreement on February 11, 2026, Evergy terminated the earlier facility, which carried no early termination penalties, signaling a refinancing that increases available liquidity and extends near-term financing flexibility without immediate added cost from the prior credit line.

The most recent analyst rating on (EVRG) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on Evergy stock, see the EVRG Stock Forecast page.

Evergy Enters New Term Loan and Repurchases Convertible Notes

On January 7, 2026, Evergy entered into a $55 million unsecured term loan facility with Bank of America that matures on January 6, 2027, providing additional liquidity for working capital, capital expenditures, permitted acquisitions and other general corporate purposes under customary leverage covenants. On the same date, the utility agreed to repurchase approximately $244.1 million in principal amount of its 4.50% convertible notes due 2027 for about $302.5 million in cash, a transaction that will modestly reduce its outstanding convertible debt to roughly $1.16 billion and could influence trading dynamics in Evergy’s common stock as noteholders adjust associated hedging and arbitrage positions.

The most recent analyst rating on (EVRG) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Evergy stock, see the EVRG Stock Forecast page.

Evergy Issues $300M First Mortgage Bonds

On December 5, 2025, Evergy Kansas Central issued $300 million of its First Mortgage Bonds, 5.25% Series due 2035, expanding on a previous issuance from March 2025. This move, facilitated by major financial institutions, signifies a strategic financial maneuver to consolidate its bond series, potentially enhancing its financial stability and market position.

The most recent analyst rating on (EVRG) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Evergy stock, see the EVRG Stock Forecast page.

Evergy Amends Mortgage for Greater Financial Flexibility

On November 25, 2025, Evergy Kansas Central executed a Supplemental Indenture with The Bank of New York Mellon Trust Company, which amends the original Mortgage and Deed of Trust from 1939. This amendment allows for the release of mortgaged property under specific conditions, the issuance of new first mortgage bonds up to 70% of the net bondable value of property additions, and the removal of several financial tests and requirements previously in place. These changes are designed to provide greater flexibility in managing the company’s financial and operational strategies, potentially impacting stakeholders by altering the company’s debt management and property release capabilities.

The most recent analyst rating on (EVRG) stock is a Buy with a $89.00 price target. To see the full list of analyst forecasts on Evergy stock, see the EVRG Stock Forecast page.