Evergy (EVRG) AI Stock Analysis

• Market Cap: $16.69B
• Dividend Yield: 3.69%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.21
• Revenue Growth: 3.28%
• EPS Growth: 13.56%
• Country: US
• Employees: 4,731
• Sector: Utilities
• Sector Strength: 78
• Industry: Regulated Electric
• EPS (TTM): 0.82
• Shares Outstanding: 230,155,320
• 10 Day Avg. Volume: 2,173,354
• 30 Day Avg. Volume: 2,412,683
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 5.24
• Enterprise Value/Gross Profit: 11.03
• Enterprise Value/Ebitda: 11.52
• 1Y Price Target: $76.00
• Price Target Upside: 4.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $79.00 ▲(8.91% Upside)

Evergy's overall stock score is driven by stable financial performance and positive earnings call sentiment. The technical analysis supports a bullish outlook, while valuation remains fair. High leverage and negative free cash flow are notable risks.

Positive Factors

Financial Performance

The settlement specifies a 9.70% ROE for its transmission delivery charge, which is an improvement from the current 9.40% ROE.

Regulatory Environment

The unanimous settlement agreement on Evergy's Kansas Large Load Power Service Rate Plan indicates an improving regulatory environment in Kansas.

Negative Factors

Cost Impact

The settlement proposes modestly higher costs for large loads, including increased demand, energy, and customer monthly bill charges.

Potential 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. (EVRG) is a publicly traded energy company headquartered in Kansas City, Missouri, providing electric utility services to approximately 1.6 million customers in Kansas and Missouri. The company operates through two primary segments: Evergy Kansas and Evergy Missouri, delivering reliable electricity while focusing on sustainability and innovative energy solutions. Evergy is committed to transitioning to cleaner energy sources, investing in renewable energy projects, and enhancing grid infrastructure to ensure efficient service delivery.

How the Company Makes Money

Evergy generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. The company's revenue model is based on regulated utility rates, which are approved by state public utility commissions. Key revenue streams include residential electricity sales, commercial and industrial power contracts, and ancillary services related to energy distribution. Additionally, Evergy benefits from partnerships with renewable energy developers and government initiatives aimed at increasing the share of clean energy in its portfolio. Factors contributing to its earnings include the demand for electricity, regulatory frameworks, infrastructure investments, and ongoing efforts to optimize operational efficiency.

Evergy Financial Statement Overview

Summary

Evergy demonstrates stable revenue growth and strong profit margins, typical for the regulated electric industry. However, high leverage and negative free cash flow indicate areas for improvement in 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
EBITDA	2.68B	2.64B	2.42B	2.19B	2.31B	2.04B
Net Income	875.80M	873.50M	731.30M	752.70M	879.70M	618.30M
Balance Sheet
Total Assets	32.45B	32.28B	32.24B	29.49B	28.52B	27.11B
Cash, Cash Equivalents and Short-Term Investments	35.30M	22.00M	27.70M	25.20M	26.20M	144.90M
Total Debt	14.40B	14.07B	13.27B	12.04B	11.17B	10.32B
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: 72.54
• 50DMA: Positive
• 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 72.54 is above the 20-day moving average (MA) of 71.86, above the 50-day MA of 69.85, and above the 200-day MA of 65.57, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 59.07 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
FE	73 Outperform	$25.07B	19.17	10.33%	3.97%	6.44%	49.07%
EVRG	72 Outperform	$16.69B	19.95	8.55%	3.69%	3.28%	13.56%
CMS	72 Outperform	$21.86B	21.55	12.48%	2.93%	8.25%	4.37%
EIX	72 Outperform	$21.69B	8.28	17.37%	5.87%	4.26%	173.18%
LNT	71 Outperform	$16.97B	20.40	11.94%	2.99%	4.62%	32.23%
PNW	69 Neutral	$11.00B	18.97	8.90%	3.88%	7.47%	-8.53%
Sector *	62 Neutral	HK$29.63B	9.25	5.12%	4.69%	-3.65%	2.20%

Evergy Corporate Events

Evergy Issues $400 Million in Mortgage Bonds

On August 15, 2025, Evergy Metro issued $400 million in 5.125% Mortgage Bonds due 2035, under an agreement with several major financial institutions. This issuance is part of Evergy Metro’s strategy to strengthen its financial position and support long-term growth, potentially impacting its market standing and stakeholder interests.

Evergy Reports Q2 2025 Financial Results and Dividend

On August 7, 2025, Evergy announced its second quarter 2025 financial results, reporting a GAAP EPS of $0.74, down from $0.90 in 2024, and adjusted EPS of $0.82, compared to $0.90 in the previous year. The decrease was attributed to milder weather, increased operational expenses, and higher interest and depreciation costs, partially offset by revenue growth from regulated investments and increased electricity demand. Despite these challenges, Evergy reaffirmed its 2025 adjusted EPS guidance of $3.92 to $4.12 and declared a quarterly dividend of $0.6675 per share. The company also highlighted its progress in regulatory settlements and approvals for new energy projects, indicating strong stakeholder alignment and a focus on economic development.