Evergy (EVRG) AI Stock Analysis

• Market Cap: $16.29B
• Dividend Yield: 3.7%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.25
• 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: 2,011,159
• 30 Day Avg. Volume: 2,241,514
• PEG Ratio: 69.57
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -82.42
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 10.87
• Enterprise Value/Ebitda: 2.93
• 1Y Price Target: $75.22
• Price Target Upside: 5.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 69 Neutral
• Price Target: $74.00 ▲(3.42%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

Growth Prospects

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

Regulatory Environment

The process and outcome of the settlement represent a significant improvement from the prior rate case, indicating an improving regulatory environment.

Valuation

Shares are trading at a discount, providing an attractive risk/reward opportunity, reinforcing the Outperform rating.

Negative Factors

Operational Challenges

While this outcome is positive, with the outage in Q1 and the potential weather losses in Q2, there are headwinds to FY guidance.

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 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	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
EBITDA	2.64B	2.42B	2.19B	2.31B	2.04B
Net Income	873.50M	731.30M	752.70M	879.70M	618.30M
Balance Sheet
Total Assets	32.28B	32.24B	29.49B	28.52B	27.11B
Cash, Cash Equivalents and Short-Term Investments	22.00M	27.70M	25.20M	26.20M	144.90M
Total Debt	14.07B	13.27B	12.04B	11.17B	10.32B
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: 71.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 71.55 is above the 20-day moving average (MA) of 69.24, above the 50-day MA of 68.01, and above the 200-day MA of 64.61, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 65.48 is Neutral, neither overbought nor oversold. The STOCH value of 91.53 is Negative, 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
CMS	77 Outperform	$22.08B	21.78	12.48%	2.86%	8.25%	4.37%
LNT	76 Outperform	$16.70B	22.43	10.71%	3.07%	2.46%	5.66%
FE	72 Outperform	$24.66B	18.85	10.33%	3.98%	6.44%	49.07%
EIX	71 Outperform	$20.45B	7.81	17.37%	6.14%	4.26%	173.18%
PNW	69 Neutral	$10.83B	18.01	9.08%	3.95%	10.69%	12.37%
EVRG	69 Neutral	$16.29B	18.65	8.95%	3.70%	5.53%	23.00%
Sector *	62 Neutral	HK$29.15B	8.50	5.79%	4.93%	-3.50%	2.59%

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.