Evergy (EVRG) AI Stock Analysis

• Market Cap: $16.87B
• Dividend Yield: 3.67%
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 20.1
• 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): 2.03
• Shares Outstanding: 230,214,140
• 10 Day Avg. Volume: 1,472,455
• 30 Day Avg. Volume: 2,021,980
• PEG Ratio: 0.85
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 2.43
• P/FCF Ratio: -40.17
• Enterprise Value/Market Cap: 1.93
• Enterprise Value/Revenue: 5.60
• Enterprise Value/Gross Profit: 17.38
• Enterprise Value/Ebitda: 12.09
• 1Y Price Target: $84.38
• Price Target Upside: 14.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 4
• Revenue Forecast (FY): $6.06B

• Rating: 62 Neutral
• Price Target: $80.00 ▲(8.84% Upside)

Evergy's overall stock score reflects a balance of operational efficiency and financial challenges. The strong dividend yield and strategic financial maneuvers are positive, but revenue growth and cash flow issues, along with technical bearish signals, weigh on the score. The company's ability to manage leverage and capitalize on regulatory and economic opportunities will be key to future performance.

Positive Factors

Operational Efficiency

Evergy's strong operational and reliability performance ensures consistent service delivery, enhancing customer satisfaction and long-term business stability.

Regulatory Progress

Regulatory approvals for new energy projects support Evergy's transition to cleaner energy, aligning with industry trends and improving future growth prospects.

Financial Flexibility

The mortgage amendment enhances Evergy's financial flexibility, enabling better debt management and strategic investments, crucial for long-term growth.

Negative Factors

High Debt Levels

High leverage can strain Evergy's financial resources, limiting its ability to invest in growth opportunities and potentially impacting long-term stability.

Cash Flow Challenges

Weak cash flow generation limits Evergy's financial flexibility, affecting its ability to fund operations and invest in future growth initiatives.

Revenue Growth Challenges

Negative revenue growth indicates potential challenges in market expansion and customer acquisition, which could hinder Evergy's long-term performance.

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

Evergy demonstrates strong profitability with high margins and a stable balance sheet. However, challenges in revenue growth and negative free cash flow are concerns. The company's financial health is stable, but improvements in cash flow management and revenue growth are needed.

Income Statement

Evergy's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 17.8%, which is concerning. However, the company maintains a healthy gross profit margin of 52.05% and a net profit margin of 14.29%, indicating strong profitability. The EBIT and EBITDA margins are also robust at 25.04% and 45.43%, respectively, suggesting efficient operations. Despite the revenue decline, profitability metrics remain strong.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.49, which is relatively high but manageable for the industry. Return on equity stands at 8.43%, indicating decent returns for shareholders. The equity ratio is 30.26%, showing a balanced capital structure. While leverage is on the higher side, the company maintains a solid equity base.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -29.06% in the TTM period. The operating cash flow to net income ratio is 0.57, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is negative, reflecting cash flow constraints. While operating cash flow is positive, the negative free cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.80B	5.82B	5.49B	5.86B	5.59B	4.91B
Gross Profit	1.87B	1.90B	1.67B	1.70B	1.74B	1.51B
EBITDA	2.69B	2.64B	2.42B	2.19B	2.32B	2.05B
Net Income	849.50M	873.50M	731.30M	752.70M	879.70M	618.30M
Balance Sheet
Total Assets	33.44B	32.28B	30.98B	29.49B	28.52B	27.11B
Cash, Cash Equivalents and Short-Term Investments	41.90M	22.00M	27.70M	25.20M	26.20M	144.90M
Total Debt	14.72B	14.07B	13.15B	12.04B	11.17B	10.32B
Total Liabilities	23.11B	22.29B	21.29B	20.00B	19.28B	18.40B
Stockholders Equity	10.29B	9.96B	9.66B	9.48B	9.24B	8.73B
Cash Flow
Free Cash Flow	-339.80M	-352.90M	-353.80M	-364.60M	-620.80M	193.50M
Operating Cash Flow	2.11B	1.98B	1.98B	1.80B	1.35B	1.75B
Investing Cash Flow	-2.37B	-2.26B	-2.47B	-2.15B	-1.91B	-1.53B
Financing Cash Flow	253.60M	280.30M	494.00M	349.30M	443.40M	-98.40M

Evergy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 73.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 73.5 is below the 20-day moving average (MA) of 75.46, below the 50-day MA of 76.15, and above the 200-day MA of 69.62, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 7.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EVRG.

Evergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNT	70 Outperform	$16.84B	20.61	11.46%	3.13%	7.76%	23.48%
CMS	67 Neutral	$21.63B	20.52	12.34%	3.08%	10.96%	-0.77%
OGE	67 Neutral	$8.81B	17.19	10.69%	3.82%	18.03%	29.46%
PPL	66 Neutral	$25.05B	23.04	7.65%	3.17%	8.42%	32.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
PNW	65 Neutral	$10.55B	18.11	8.62%	4.12%	5.70%	-8.25%
EVRG	62 Neutral	$16.87B	20.11	8.36%	3.67%	0.11%	-0.52%

Evergy Corporate Events

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.

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.

Evergy Reports Q3 2025 Earnings and Dividend Increase

On November 6, 2025, Evergy announced its third quarter 2025 results, reporting GAAP earnings of $475.0 million, or $2.03 per share, slightly up from $465.6 million, or $2.02 per share, in the same period in 2024. The company increased its quarterly dividend by 4% to $0.6950 per share and narrowed its 2025 adjusted EPS guidance to a range of $3.92 to $4.02. Despite cooler than normal summer weather impacting earnings, Evergy remains optimistic about its long-term growth outlook, supported by regulatory and operational execution.