Evergy (EVRG) AI Stock Analysis

• Market Cap: $15.93B
• Dividend Yield: 3.83%
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.24
• Revenue Growth: 5.73%
• EPS Growth: 19.34%
• Country: US
• Employees: 4,731
• Sector: Utilities
• Sector Strength: 87
• Industry: Regulated Electric
• EPS (TTM): 3.79
• Shares Outstanding: 230,013,240
• 10 Day Avg. Volume: 1,693,786
• 30 Day Avg. Volume: 2,336,012
• PEG Ratio: 0.95
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $75.80
• Price Target Upside: 9.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Evergy's overall stock score reflects its strong financial performance and positive technical indicators. The company shows robust earnings growth and regulatory success, supported by a solid dividend yield. While negative free cash flow and increased expenses pose challenges, the company's strategic investments and economic development initiatives position it for future growth.

Positive Factors

Earnings and Financial Performance

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.

Regulatory Environment

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

Negative Factors

Debt and Financing Costs

Share price decline since November update increases dilution from equity assumptions, and the continued rise in 10 year treasury rates increases debt financing costs.

Valuation and Financing

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's financials demonstrate strong profitability with consistent net income growth and a solid EBIT margin. The balance sheet is healthy, with improved leverage management, but free cash flow remains negative 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
4.89B	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
100.00K	27.70M	25.20M	26.20M	144.90M
	Total Assets
32.28B	32.24B	29.49B	28.52B	27.11B
	Total Debt
508.70M	13.27B	12.04B	11.17B	10.32B
	Net Debt
508.60M	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
-234.60M	-353.80M	-364.60M	-620.80M	193.50M
	Operating Cash Flow
1.04B	1.98B	1.80B	1.35B	1.75B
	Investing Cash Flow
-1.20B	-2.47B	-2.15B	-1.91B	-1.53B
	Financing Cash Flow
151.70M	494.00M	349.30M	443.40M	-98.40M

Evergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.25
• 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 69.25 is above the 20-day moving average (MA) of 67.39, above the 50-day MA of 67.39, and above the 200-day MA of 62.02, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 58.50 is Neutral, neither overbought nor oversold. The STOCH value of 82.29 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
EIX	73 Outperform	$20.99B	7.74	17.93%	5.89%	5.36%	209.92%
EVRG	72 Outperform	$15.93B	18.28	8.91%	3.83%	5.73%	19.34%
LNT	72 Outperform	$15.55B	22.54	10.01%	3.26%	-1.12%	-3.22%
CMS	71 Outperform	$21.81B	21.57	12.53%	2.86%	5.87%	3.59%
PNW	70 Outperform	$11.14B	17.83	9.42%	3.80%	9.13%	21.11%
FE	70 Neutral	$24.67B	22.78	8.69%	3.96%	7.92%	1.54%
Sector *	63 Neutral	$8.48B	11.89	5.79%	4.37%	3.17%	-10.89%

Evergy Corporate Events

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.