Evergy (EVRG) AI Stock Analysis

• Market Cap: $15.24B
• Dividend Yield: 3.98%
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.26
• Revenue Growth: 5.53%
• EPS Growth: 23.00%
• Country: US
• Employees: 4,731
• Sector: Utilities
• Sector Strength: 86
• Industry: Regulated Electric
• EPS (TTM): 0.54
• Shares Outstanding: 230,090,700
• 10 Day Avg. Volume: 2,499,425
• 30 Day Avg. Volume: 2,209,278
• PEG Ratio: 7.22
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -43.40
• Enterprise Value/Market Cap: 1.93
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 10.65
• Enterprise Value/Ebitda: 2.91
• 1Y Price Target: $74.86
• Price Target Upside: 13.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: $72.00 ▲(8.71%Upside)

Evergy maintains a solid financial foundation and shows potential for long-term growth through strategic initiatives and regulatory support. However, near-term headwinds from cash flow challenges and weak market momentum may limit immediate upside.

Positive Factors

Growth Prospects

Evergy's growth prospects are now better aligned with its peers, following revisions to its capital plan.

Regulatory Environment

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

Total Return Opportunity

Including its above-average 4.1% dividend yield, EVRG shares provide investors with a compelling ~17% total return.

Negative Factors

Financing Challenges

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

Valuation Concerns

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

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 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 shows strong profitability with a stable balance sheet and efficient cost management, highlighted by an increased net profit margin and a lower debt-to-equity ratio. However, the company faces challenges with negative free cash flow due to high capital expenditures.

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.

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.

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.

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
3.03B	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
22.00M	27.70M	25.20M	26.20M	144.90M
	Total Assets
32.28B	32.24B	29.49B	28.52B	27.11B
	Total Debt
14.07B	13.27B	12.04B	11.17B	10.32B
	Net Debt
14.05B	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
-352.90M	-353.80M	-364.60M	-620.80M	193.50M
	Operating Cash Flow
1.98B	1.98B	1.80B	1.35B	1.75B
	Investing Cash Flow
-2.26B	-2.47B	-2.15B	-1.91B	-1.53B
	Financing Cash Flow
280.30M	494.00M	349.30M	443.40M	-98.40M

Evergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.23
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 66.23 is below the 20-day moving average (MA) of 66.53, below the 50-day MA of 66.66, and above the 200-day MA of 62.29, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 52.95 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	78 Outperform	$15.99B	21.48	10.71%	3.20%	2.46%	5.66%
CMS	71 Outperform	$20.88B	20.66	12.53%	3.00%	5.87%	3.59%
FE	70 Neutral	$24.30B	22.40	8.69%	4.04%	7.92%	1.54%
EIX	69 Neutral	$21.79B	8.04	17.93%	5.68%	5.36%	209.92%
EVRG	68 Neutral	$15.24B	17.45	8.95%	3.98%	5.53%	23.00%
PNW	65 Neutral	$10.93B	18.19	9.08%	3.91%	10.69%	12.37%
Sector *	64 Neutral	$8.54B	10.24	4.67%	4.36%	4.12%	-13.19%

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.

Evergy Reports Strong 2024 Financial Results and Future Plans

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.