EVERGY INC (EVRG) Stock Fundamental Analysis
NASDAQ:EVRG - Nasdaq - US30034W1062 - Common Stock - Currency: USD
EVRG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of EVRG while its profitability can be described as average. EVRG is valied quite expensively at the moment, while it does show a decent growth rate. Finally EVRG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EVRG was profitable.
EVRG had a positive operating cash flow in the past year.
EVRG had positive earnings in each of the past 5 years.
In the past 5 years EVRG always reported a positive cash flow from operatings.
1.2 Ratios
EVRG has a Return On Assets (2.70%) which is in line with its industry peers.
EVRG has a Return On Equity of 8.82%. This is in the lower half of the industry: EVRG underperforms 63.04% of its industry peers.
EVRG's Return On Invested Capital of 3.89% is in line compared to the rest of the industry. EVRG outperforms 43.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EVRG is significantly below the industry average of 39.32%.
The 3 year average ROIC (3.70%) for EVRG is below the current ROIC(3.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 8.82% | ||
| ROIC | 3.89% |
ROA(3y)2.54%
ROA(5y)2.6%
ROE(3y)8.09%
ROE(5y)8.18%
ROIC(3y)3.7%
ROIC(5y)3.77%
1.3 Margins
EVRG's Profit Margin of 14.87% is in line compared to the rest of the industry. EVRG outperforms 58.70% of its industry peers.
EVRG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.45%, EVRG is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
EVRG's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.45% | ||
| PM (TTM) | 14.87% | ||
| GM | N/A |
OM growth 3Y0.79%
OM growth 5Y1.2%
PM growth 3Y-1.74%
PM growth 5Y2.8%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EVRG is destroying value.
The number of shares outstanding for EVRG remains at a similar level compared to 1 year ago.
EVRG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EVRG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that EVRG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.79, EVRG is in line with its industry, outperforming 47.83% of the companies in the same industry.
EVRG has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
EVRG has a Debt to Equity ratio (1.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.62
WACC6.27%
2.3 Liquidity
EVRG has a Current Ratio of 0.55. This is a bad value and indicates that EVRG is not financially healthy enough and could expect problems in meeting its short term obligations.
EVRG has a worse Current ratio (0.55) than 80.43% of its industry peers.
EVRG has a Quick Ratio of 0.55. This is a bad value and indicates that EVRG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of EVRG (0.29) is worse than 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
EVRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.86%, which is quite good.
The Earnings Per Share has been growing slightly by 5.90% on average over the past years.
EVRG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.29%.
Measured over the past years, EVRG shows a small growth in Revenue. The Revenue has been growing by 2.58% on average per year.
EPS 1Y (TTM)8.86%
EPS 3Y2.48%
EPS 5Y5.9%
EPS Q2Q%0%
Revenue 1Y (TTM)6.29%
Revenue growth 3Y1.53%
Revenue growth 5Y2.58%
Sales Q2Q%3.27%
3.2 Future
The Earnings Per Share is expected to grow by 6.28% on average over the next years.
EVRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.01% yearly.
EPS Next Y8.34%
EPS Next 2Y7.03%
EPS Next 3Y6.65%
EPS Next 5Y6.28%
Revenue Next Year4.09%
Revenue Next 2Y4.12%
Revenue Next 3Y4.25%
Revenue Next 5Y5.01%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.12, EVRG is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as EVRG.
EVRG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.52, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.95, EVRG is valued correctly.
EVRG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.25. EVRG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 14.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EVRG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.05
PEG (5Y)2.9
EPS Next 2Y7.03%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
EVRG has a Yearly Dividend Yield of 4.10%, which is a nice return.
Compared to an average industry Dividend Yield of 3.53, EVRG pays a bit more dividend than its industry peers.
EVRG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
On average, the dividend of EVRG grows each year by 6.23%, which is quite nice.
EVRG has been paying a dividend for at least 10 years, so it has a reliable track record.
EVRG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.23%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
68.81% of the earnings are spent on dividend by EVRG. This is not a sustainable payout ratio.
The dividend of EVRG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP68.81%
EPS Next 2Y7.03%
EPS Next 3Y6.65%
65.24
+0.17 (+0.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.09%
Inst Owner Change-0.49%
Ins Owners0.16%
Ins Owner Change5.62%
Market Cap15.01B
Analysts81.9
Price Target74.3 (13.89%)
Short Float %4.56%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend2.6
Dividend Growth(5Y)6.23%
DP68.81%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.02%
Min EPS beat(2)-20.12%
Max EPS beat(2)-7.92%
EPS beat(4)1
Avg EPS beat(4)-6.55%
Min EPS beat(4)-20.12%
Max EPS beat(4)2.6%
EPS beat(8)2
Avg EPS beat(8)-5.88%
EPS beat(12)5
Avg EPS beat(12)-2.39%
EPS beat(16)8
Avg EPS beat(16)-0.39%
Revenue beat(2)1
Avg Revenue beat(2)11.89%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)24.61%
Revenue beat(4)2
Avg Revenue beat(4)2.77%
Min Revenue beat(4)-17.21%
Max Revenue beat(4)24.61%
Revenue beat(8)2
Avg Revenue beat(8)-4.47%
Revenue beat(12)6
Avg Revenue beat(12)1.98%
Revenue beat(16)8
Avg Revenue beat(16)2.28%
PT rev (1m)1.14%
PT rev (3m)7.58%
EPS NQ rev (1m)-3.71%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.81%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 14.95 | ||
| P/S | 2.55 | ||
| P/FCF | N/A | ||
| P/OCF | 7.09 | ||
| P/B | 1.51 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 10.44 |
EPS(TTM)3.81
EY5.84%
EPS(NY)4.36
Fwd EY6.69%
FCF(TTM)-0.85
FCFYN/A
OCF(TTM)9.2
OCFY14.1%
SpS25.6
BVpS43.16
TBVpS33
PEG (NY)2.05
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 8.82% | ||
| ROCE | 5.15% | ||
| ROIC | 3.89% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 4.21% | ||
| OM | 25.45% | ||
| PM (TTM) | 14.87% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.54%
ROA(5y)2.6%
ROE(3y)8.09%
ROE(5y)8.18%
ROIC(3y)3.7%
ROIC(5y)3.77%
ROICexc(3y)3.7%
ROICexc(5y)3.78%
ROICexgc(3y)4.03%
ROICexgc(5y)4.13%
ROCE(3y)4.94%
ROCE(5y)5.02%
ROICexcg growth 3Y-1.92%
ROICexcg growth 5Y-0.82%
ROICexc growth 3Y-1.58%
ROICexc growth 5Y-0.43%
OM growth 3Y0.79%
OM growth 5Y1.2%
PM growth 3Y-1.74%
PM growth 5Y2.8%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.13 | ||
| Cap/Depr | 195.33% | ||
| Cap/Sales | 39.23% | ||
| Interest Coverage | 2.83 | ||
| Cash Conversion | 78.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.79 |
F-Score6
WACC6.27%
ROIC/WACC0.62
Cap/Depr(3y)208.18%
Cap/Depr(5y)199.78%
Cap/Sales(3y)39.77%
Cap/Sales(5y)37.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.86%
EPS 3Y2.48%
EPS 5Y5.9%
EPS Q2Q%0%
EPS Next Y8.34%
EPS Next 2Y7.03%
EPS Next 3Y6.65%
EPS Next 5Y6.28%
Revenue 1Y (TTM)6.29%
Revenue growth 3Y1.53%
Revenue growth 5Y2.58%
Sales Q2Q%3.27%
Revenue Next Year4.09%
Revenue Next 2Y4.12%
Revenue Next 3Y4.25%
Revenue Next 5Y5.01%
EBIT growth 1Y18.69%
EBIT growth 3Y2.34%
EBIT growth 5Y3.81%
EBIT Next Year83.48%
EBIT Next 3Y28.54%
EBIT Next 5Y21.67%
FCF growth 1Y27.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.39%
OCF growth 3Y13.64%
OCF growth 5Y2.55%