Evergy (EVRG) AI Stock Analysis

• Market Cap: $15.36B
• Dividend Yield: 4%
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.25
• Revenue Growth: 5.53%
• EPS Growth: 23.00%
• Country: US
• Employees: 4,731
• Sector: Utilities
• Sector Strength: 76
• Industry: Regulated Electric
• EPS (TTM): 0.54
• Shares Outstanding: 230,090,700
• 10 Day Avg. Volume: 2,490,300
• 30 Day Avg. Volume: 2,489,306
• PEG Ratio: -1.29
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -39.68
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 9.46
• Enterprise Value/Ebitda: 2.55
• 1Y Price Target: $74.63
• Price Target Upside: 11.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $74.00 ▲(10.88%Upside)

Evergy's overall stock score is driven by its stable financial performance and reasonable valuation. While technical analysis presents mixed signals, strategic corporate events and a reaffirmed earnings guidance contribute positively. However, high leverage and cash flow challenges pose risks that need addressing.

Positive Factors

Earnings

Evergy, Inc. shares are expected to experience multiple expansion due to a balanced outcome in the Kansas Central rate case.

Growth Prospects

Evergy remains on the Focus List as a company positioned to benefit from datacenter growth in Missouri and Kansas given its access to gas infrastructure, affordable rates, improving regulatory environments, and access to capital markets while trading at a discounted valuation multiple.

Regulatory Environment

Evergy is expected to benefit from an improving regulatory backdrop in their Missouri jurisdiction.

Negative Factors

Credit Metrics

Financing needs could test credit metrics, but junior subordinated notes (JSNs) provide a means to mitigate the pressure on FFO to Debt ratios.

Expenditures

The integration of over $2 billion in additional capital expenditures enhances visibility to a potential earnings per share (EPS) growth rate above the top end of the company's target range.

Valuation

The implied valuation in Kansas appears overly punitive at a ~24% discount.

Evergy Business Overview & Revenue Model

Company Description

Evergy, Inc. (EVRG) is an investor-owned electric utility headquartered in Kansas City, Missouri. The company operates within the utilities sector, providing electricity services to customers across Kansas and Missouri. Formed through the merger of Westar Energy and Great Plains Energy, Evergy is committed to delivering reliable and affordable energy while emphasizing renewable energy sources, such as wind and solar power, to meet the evolving energy demands of its customer base.

How the Company Makes Money

Evergy makes money primarily through the generation, transmission, and distribution of electricity to approximately 1.6 million residential, commercial, and industrial customers. The company's revenue model is mainly based on regulated utility operations, where it earns income through customer billing for electricity usage, which is subject to state regulatory approval for rate adjustments. Evergy's key revenue streams include residential electricity services, commercial and industrial power supply, and renewable energy programs. Additionally, the company benefits from partnerships with renewable energy developers and government incentives aimed at increasing the use of sustainable energy sources, further enhancing its earnings potential.

Evergy Financial Statement Overview

Summary

Evergy demonstrates a stable revenue base and profitability with strong margins and moderate growth. However, the balance sheet reflects high leverage, typical for utility companies, posing a risk. Cash flow challenges with negative free cash flow suggest the need for improved capital management.

Income Statement

Evergy's income statement shows a stable revenue growth with a TTM revenue growth rate of 0.81% compared to prior year. The gross profit margin stands solid at 47.48% TTM, reflecting efficient cost management. Net profit margin is healthy at 14.86% TTM. However, slight fluctuations in EBIT and EBITDA margins at 25.50% and 45.44% TTM, respectively, indicate variability in operating efficiency.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a debt-to-equity ratio of 1.45 TTM, which is typical for the industry. ROE is decent at 8.82% TTM, indicating effective equity utilization. The equity ratio at 30.60% TTM suggests a balanced approach between equity and liabilities but highlights potential risk in high leverage.

Cash Flow

Evergy's cash flow shows a concerning free cash flow trajectory, with a negative free cash flow of -$194.8 million TTM. Operating cash flow coverage of net income is strong at 2.42 TTM, indicating good cash conversion. However, the free cash flow to net income ratio is negative, reflecting challenges in covering capital expenditures.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.89B	5.85B	5.51B	5.86B	5.59B	4.91B
	Gross Profit
2.80B	3.03B	1.69B	2.63B	2.63B	2.39B
	EBIT
1.50B	1.47B	1.28B	1.27B	1.35B	1.14B
	EBITDA
2.68B	2.64B	2.42B	2.19B	2.31B	2.04B
	Net Income Common Stockholders
875.80M	873.50M	731.30M	752.70M	879.70M	618.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.30M	22.00M	27.70M	25.20M	26.20M	144.90M
	Total Assets
32.45B	32.28B	32.24B	29.49B	28.52B	27.11B
	Total Debt
14.40B	14.07B	13.27B	12.04B	11.17B	10.32B
	Net Debt
14.37B	14.05B	13.25B	12.01B	11.14B	10.18B
	Total Liabilities
22.49B	22.29B	22.56B	20.00B	19.28B	18.40B
	Stockholders Equity
9.93B	9.81B	9.66B	9.48B	9.24B	8.73B
Cash Flow		Free Cash Flow
-194.80M	-352.90M	-353.80M	-364.60M	-620.80M	193.50M
	Operating Cash Flow
2.12B	1.98B	1.98B	1.80B	1.35B	1.75B
	Investing Cash Flow
-2.28B	-2.26B	-2.47B	-2.15B	-1.91B	-1.53B
	Financing Cash Flow
148.30M	280.30M	494.00M	349.30M	443.40M	-98.40M

Evergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.74
• 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 66.74 is above the 20-day moving average (MA) of 66.44, above the 50-day MA of 66.57, and above the 200-day MA of 63.09, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 51.08 is Neutral, neither overbought nor oversold. The STOCH value of 57.38 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
LNT	75 Outperform	$15.53B	20.86	10.71%	3.38%	2.46%	5.66%
CMS	73 Outperform	$20.68B	20.45	12.53%	3.14%	5.87%	3.59%
FE	72 Outperform	$22.92B	21.13	8.69%	4.48%	7.92%	1.54%
EVRG	69 Neutral	$15.36B	17.58	8.95%	4.00%	5.53%	23.00%
EIX	67 Neutral	$18.60B	6.86	17.93%	6.73%	5.36%	209.92%
Sector *	64 Neutral	$8.51B	10.30	4.25%	5.64%	4.06%	-12.76%
PNW	64 Neutral	$10.61B	17.65	9.08%	4.03%	10.69%	12.37%

Evergy Corporate Events

Evergy Enters Equity Distribution Agreement for $1.2 Billion

On May 8, 2025, Evergy, Inc. entered into an equity distribution agreement with several financial institutions, including Barclays, BofA Securities, Citigroup, and others, to facilitate the offering and sale of up to $1.2 billion in common stock. The agreement allows for sales through ordinary brokers’ transactions on the Nasdaq Stock Market and includes provisions for forward sale agreements. The company intends to use any net proceeds for general corporate purposes, potentially investing in its subsidiaries. This strategic move could enhance Evergy’s financial flexibility and support its growth initiatives, impacting its market positioning and stakeholder interests.

Evergy Announces Q1 2025 Financial Results and Dividend

On May 8, 2025, Evergy announced its first quarter 2025 financial results, reporting GAAP earnings of $125.0 million, or $0.54 per share, a slight increase from $122.7 million, or $0.53 per share, in the same period of 2024. The company reaffirmed its 2025 earnings guidance and declared a quarterly dividend of $0.6675 per share. Evergy’s performance was influenced by the recovery of regulated investments, though partially offset by lower demand due to an unplanned customer maintenance shutdown and other factors. The company also highlighted legislative advancements in Missouri and Kansas that support infrastructure investment and its efforts to gain approval for new generation projects.

Evergy Promotes Matt Gummig to Chief Accounting Officer

Evergy has announced the promotion of Matt Gummig to Vice President, Chief Accounting Officer, and principal accounting officer, effective April 2, 2025. This follows his interim appointment in December 2024. Mr. Gummig’s new role includes a comprehensive compensation package, participation in incentive plans, and eligibility for severance benefits, reflecting Evergy’s commitment to strengthening its leadership team.