NYSE:EVRG

Stock Analysis Report

Executive Summary

Evergy, Inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Kansas and Missouri.

Snowflake

Fundamentals

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Evergy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

EVRG

-2.1%

US Electric Utilities

1.3%

US Market


1 Year Return

13.7%

EVRG

18.7%

US Electric Utilities

5.9%

US Market

Return vs Industry: EVRG underperformed the US Electric Utilities industry which returned 18.7% over the past year.

Return vs Market: EVRG exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

EVRGIndustryMarket
7 Day-1.8%-2.1%1.3%
30 Day-0.6%1.2%-1.9%
90 Day4.6%4.5%-1.8%
1 Year17.4%13.7%22.6%18.7%8.3%5.9%
3 Year22.0%11.2%44.0%29.6%45.6%36.2%
5 Year106.2%75.4%73.8%44.1%66.1%47.9%

Price Volatility Vs. Market

How volatile is Evergy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Evergy undervalued compared to its fair value and its price relative to the market?

26.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: EVRG ($63.81) is trading above our estimate of fair value ($43.81)

Significantly Undervalued: EVRG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EVRG is poor value based on its PE Ratio (26.8x) compared to the Electric Utilities industry average (23.4x).

PE vs Market: EVRG is poor value based on its PE Ratio (26.8x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: EVRG is poor value based on its PEG Ratio (8.9x)


Price to Book Ratio

PB vs Industry: EVRG is good value based on its PB Ratio (1.7x) compared to the US Electric Utilities industry average (2.3x).


Next Steps

Future Growth

How is Evergy forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVRG's forecast earnings growth (3% per year) is above the savings rate (2.7%).

Earnings vs Market: EVRG's earnings (3% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: EVRG's earnings are forecast to grow, but not significantly.

Revenue vs Market: EVRG's revenue (1.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: EVRG's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: EVRG's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Evergy performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EVRG's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: EVRG's earnings growth over the past year (72.7%) exceeds its 5-year average (14% per year).

Earnings vs Industry: EVRG earnings growth over the past year (72.7%) exceeded the Electric Utilities industry 4.2%.


Return on Equity

High ROE: EVRG's Return on Equity (7.1%) is considered low.


Return on Assets

ROA vs Industry: EVRG's Return on Assets is below or equal to the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: EVRG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Evergy's financial position?


Financial Position Analysis

Short Term Liabilities: EVRG's short term assets ($1.5B) do not cover its short term liabilities ($3.5B)

Long Term Liabilities: EVRG's short term assets (1.5B) do not cover its long term liabilities (13.4B)


Debt to Equity History and Analysis

Debt Level: EVRG's debt to equity ratio (110.3%) is considered high

Reducing Debt: EVRG's debt to equity ratio has reduced from 119.8% to 110.3% over the past 5 years.

Debt Coverage: EVRG's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: EVRG's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: EVRG has a high level of physical assets or inventory.

Debt Coverage by Assets: EVRG's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Evergy's current dividend yield, its reliability and sustainability?

2.98%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EVRG's dividend (2.98%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: EVRG's dividend (2.98%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: EVRG's dividends per share have been stable in the past 10 years.

Growing Dividend: EVRG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.1%), EVRG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EVRG's dividends in 3 years are forecast to be covered by earnings (67.1% payout ratio).


Next Steps

Management

What is the CEO of Evergy's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Terry Bassham (58yo)

1.3yrs

Tenure

US$6,818,344

Compensation

Mr. Terry D. Bassham has been President and Chief Executive Officer at Westar Energy, Inc. since June 4, 2018 and serves as its Director since June 4, 2018. Mr. Bassham has been President and Chief Executi ...


CEO Compensation Analysis

Compensation vs. Market: Terry has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Terry's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

56yo

Average Age

Experienced Management: EVRG's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

10.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: EVRG's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: EVRG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$260,71821 Aug 19
Kevin Bryant
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares4,000
Max PriceUS$65.18
SellUS$379,39814 Aug 19
Gregory Greenwood
EntityIndividual
Role
Chief Administrative Officer
Executive VP of Strategy & Chief Administrative Officer
Shares6,000
Max PriceUS$63.23
SellUS$98,83006 Jun 19
Gregory Greenwood
EntityIndividual
Role
Chief Administrative Officer
Executive VP of Strategy & Chief Administrative Officer
Shares1,666
Max PriceUS$59.32
SellUS$233,20516 May 19
S. Soderstrom
EntityIndividual
Shares4,000
Max PriceUS$58.30
SellUS$458,25015 Mar 19
Gregory Greenwood
EntityIndividual
Role
Chief Administrative Officer
Executive VP of Strategy & Chief Administrative Officer
Shares8,000
Max PriceUS$57.75
SellUS$151,52715 Mar 19
Charles Caisley
EntityIndividual
Shares2,632
Max PriceUS$57.57
BuyUS$27,81428 Feb 19
Richard Hawley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$55.63
SellUS$662,31107 Dec 18
Terry Bassham
EntityIndividual
Role
Chief Executive Officer
President
Shares10,940
Max PriceUS$60.56
SellUS$285,96815 Nov 18
Gregory Greenwood
EntityIndividual
Role
Chief Administrative Officer
Executive VP of Strategy & Chief Administrative Officer
Shares4,815
Max PriceUS$59.39

Ownership Breakdown


Management Team

  • Terry Bassham (58yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$6.82m
  • Lori Wright (56yo)

    VP of Corporate Planning

    • Tenure: 0yrs
  • Larry Irick (63yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 16.7yrs
    • Compensation: US$1.16m
  • Kevin Bryant (43yo)

    Executive VP & COO

    • Tenure: 1.3yrs
    • Compensation: US$2.98m
  • Greg Greenwood (54yo)

    Executive VP of Strategy & Chief Administrative Officer

    • Tenure: 1.3yrs
    • Compensation: US$2.61m
  • Tony Somma (56yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$2.48m
  • Ellen Fairchild (57yo)

    VP & Chief Compliance Officer

    • Tenure: 0yrs
  • Heather Humphrey (48yo)

    Senior VP

    • Tenure: 1.3yrs
    • Compensation: US$2.64m
  • Michel' Cole (57yo)

    Vice President of Corporate Communications & Public Affairs

    • Tenure: 5.7yrs
  • Charles King

    VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Mark Ruelle (58yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$114.95k
  • Tom Hyde (70yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$284.94k
  • Terry Bassham (58yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$6.82m
  • Mollie Carter (57yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$418.64k
  • Charlie Chandler (65yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$552.42k
  • Ann Murtlow (58yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$244.79k
  • John Sherman (64yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$271.50k
  • Sandra A. Lawrence (61yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$353.08k
  • Rick Hawley (70yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$228.97k
  • Tony Isaac (66yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$243.22k

Company Information

Evergy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evergy, Inc.
  • Ticker: EVRG
  • Exchange: NYSE
  • Founded: 2017
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$15.025b
  • Shares outstanding: 235.47m
  • Website: https://www.evergyinc.com

Number of Employees


Location

  • Evergy, Inc.
  • 1200 Main Street
  • Kansas City
  • Missouri
  • 64105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVRGNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1992

Biography

Evergy, Inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Kansas and Missouri. It generates electricity through coal and wind, as well as oth ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:31
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.