EVERGY INC (EVRG) Stock Fundamental Analysis
NASDAQ:EVRG - Nasdaq - US30034W1062 - Common Stock - Currency: USD
Overall EVRG gets a fundamental rating of 4 out of 10. We evaluated EVRG against 46 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 quite expensive at the moment. 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.
In the past year EVRG had a positive cash flow from operations.
Each year in the past 5 years EVRG has been profitable.
Each year in the past 5 years EVRG had a positive operating cash flow.
1.2 Ratios
EVRG has a Return On Assets of 2.71%. This is in the better half of the industry: EVRG outperforms 60.87% of its industry peers.
Looking at the Return On Equity, with a value of 8.77%, EVRG is in line with its industry, outperforming 54.35% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.84%, EVRG is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EVRG is in line with the industry average of 4.69%.
The 3 year average ROIC (3.70%) for EVRG is below the current ROIC(3.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 8.77% | ||
| ROIC | 3.84% |
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
The Profit Margin of EVRG (14.94%) is better than 71.74% of its industry peers.
In the last couple of years the Profit Margin of EVRG has grown nicely.
Looking at the Operating Margin, with a value of 25.11%, EVRG is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
In the last couple of years the Operating Margin of EVRG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.11% | ||
| PM (TTM) | 14.94% | ||
| 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.
Compared to 1 year ago, EVRG has about the same amount of shares outstanding.
EVRG has more shares outstanding than it did 5 years ago.
EVRG has a worse debt/assets ratio than last year.
2.2 Solvency
EVRG has an Altman-Z score of 0.81. This is a bad value and indicates that EVRG is not financially healthy and even has some risk of bankruptcy.
EVRG has a Altman-Z score of 0.81. This is in the better half of the industry: EVRG outperforms 60.87% of its industry peers.
A Debt/Equity ratio of 1.36 is on the high side and indicates that EVRG has dependencies on debt financing.
EVRG has a Debt to Equity ratio of 1.36. This is in the better half of the industry: EVRG outperforms 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.61
WACC6.26%
2.3 Liquidity
EVRG has a Current Ratio of 0.50. 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 Current ratio of 0.50. This is in the lower half of the industry: EVRG underperforms 69.57% of its industry peers.
EVRG has a Quick Ratio of 0.50. 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 Quick ratio of 0.27. This is in the lower half of the industry: EVRG underperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.32% over the past year.
The Earnings Per Share has been growing slightly by 5.90% on average over the past years.
Looking at the last year, EVRG shows a small growth in Revenue. The Revenue has grown by 6.16% in the last year.
EVRG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.58% yearly.
EPS 1Y (TTM)7.32%
EPS 3Y2.48%
EPS 5Y5.9%
EPS Q2Q%29.63%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y1.53%
Revenue growth 5Y2.58%
Sales Q2Q%5.85%
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 Y8.31%
EPS Next 2Y7.11%
EPS Next 3Y6.68%
EPS Next 5Y6.28%
Revenue Next Year3.95%
Revenue Next 2Y4.07%
Revenue Next 3Y4.22%
Revenue Next 5Y5.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 18.28, the valuation of EVRG can be described as rather expensive.
EVRG's Price/Earnings ratio is a bit cheaper when compared to the industry. EVRG is cheaper than 63.04% of the companies in the same industry.
EVRG is valuated rather cheaply when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.88, EVRG is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EVRG indicates a somewhat cheap valuation: EVRG is cheaper than 65.22% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.35. EVRG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EVRG is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EVRG does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of EVRG may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)3.1
EPS Next 2Y7.11%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
EVRG has a Yearly Dividend Yield of 3.90%.
EVRG's Dividend Yield is a higher than the industry average which is at 3.43.
Compared to an average S&P500 Dividend Yield of 2.44, EVRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
The dividend of EVRG is nicely growing with an annual growth rate of 6.23%!
EVRG has paid a dividend for at least 10 years, which is 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
68.31% of the earnings are spent on dividend by EVRG. This is not a sustainable payout ratio.
EVRG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP68.31%
EPS Next 2Y7.11%
EPS Next 3Y6.68%
69.64
+0.39 (+0.56%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.09%
Inst Owner Change-1.45%
Ins Owners0.16%
Ins Owner Change-1.99%
Market Cap16.02B
Analysts82
Price Target73.18 (5.08%)
Short Float %4.19%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend2.6
Dividend Growth(5Y)6.23%
DP68.31%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.66%
Min EPS beat(2)-7.92%
Max EPS beat(2)2.6%
EPS beat(4)1
Avg EPS beat(4)-5.72%
Min EPS beat(4)-16.82%
Max EPS beat(4)2.6%
EPS beat(8)2
Avg EPS beat(8)-3.4%
EPS beat(12)6
Avg EPS beat(12)-0.47%
EPS beat(16)9
Avg EPS beat(16)1.61%
Revenue beat(2)0
Avg Revenue beat(2)-9.02%
Min Revenue beat(2)-17.21%
Max Revenue beat(2)-0.84%
Revenue beat(4)1
Avg Revenue beat(4)-4.22%
Min Revenue beat(4)-17.21%
Max Revenue beat(4)4.51%
Revenue beat(8)2
Avg Revenue beat(8)-7.23%
Revenue beat(12)5
Avg Revenue beat(12)-1.42%
Revenue beat(16)8
Avg Revenue beat(16)3.28%
PT rev (1m)2.64%
PT rev (3m)7.97%
EPS NQ rev (1m)4.24%
EPS NQ rev (3m)5.27%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)-10.47%
Revenue NQ rev (3m)-18.18%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 16.88 | ||
| P/S | 2.74 | ||
| P/FCF | N/A | ||
| P/OCF | 8.07 | ||
| P/B | 1.61 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 10.82 |
EPS(TTM)3.81
EY5.47%
EPS(NY)4.13
Fwd EY5.93%
FCF(TTM)-1.53
FCFYN/A
OCF(TTM)8.62
OCFY12.38%
SpS25.42
BVpS43.28
TBVpS33.12
PEG (NY)2.2
PEG (5Y)3.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 8.77% | ||
| ROCE | 5.13% | ||
| ROIC | 3.84% | ||
| ROICexc | 3.84% | ||
| ROICexgc | 4.16% | ||
| OM | 25.11% | ||
| PM (TTM) | 14.94% | ||
| 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 | 1.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.11 | ||
| Cap/Depr | 199.62% | ||
| Cap/Sales | 39.96% | ||
| Interest Coverage | 2.73 | ||
| Cash Conversion | 75.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.81 |
F-Score6
WACC6.26%
ROIC/WACC0.61
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)7.32%
EPS 3Y2.48%
EPS 5Y5.9%
EPS Q2Q%29.63%
EPS Next Y8.31%
EPS Next 2Y7.11%
EPS Next 3Y6.68%
EPS Next 5Y6.28%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y1.53%
Revenue growth 5Y2.58%
Sales Q2Q%5.85%
Revenue Next Year3.95%
Revenue Next 2Y4.07%
Revenue Next 3Y4.22%
Revenue Next 5Y5.01%
EBIT growth 1Y14.47%
EBIT growth 3Y2.34%
EBIT growth 5Y3.81%
EBIT Next Year83.54%
EBIT Next 3Y28.82%
EBIT Next 5Y21.67%
FCF growth 1Y0.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.18%
OCF growth 3Y13.64%
OCF growth 5Y2.55%