EVERGY INC (EVRG) Stock Fundamental Analysis
NASDAQ:EVRG - Nasdaq - US30034W1062 - Common Stock - Currency: USD
Taking everything into account, EVRG scores 4 out of 10 in our fundamental rating. EVRG was compared to 46 industry peers in the Electric Utilities industry. EVRG has a medium profitability rating, but doesn't score so well on its financial health evaluation. EVRG has a decent growth rate and is not valued too expensively. EVRG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EVRG had positive earnings in the past year.
EVRG had a positive operating cash flow in the past year.
In the past 5 years EVRG has always been profitable.
In the past 5 years EVRG always reported a positive cash flow from operatings.
1.2 Ratios
EVRG has a Return On Assets (2.71%) which is comparable to the rest of the industry.
The Return On Equity of EVRG (8.77%) is comparable to the rest of the industry.
EVRG has a Return On Invested Capital (3.84%) which is in line with its industry peers.
EVRG had an Average Return On Invested Capital over the past 3 years of 3.70%. This 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
EVRG's Profit Margin of 14.94% is fine compared to the rest of the industry. EVRG outperforms 71.74% of its industry peers.
In the last couple of years the Profit Margin of EVRG has grown nicely.
The Operating Margin of EVRG (25.11%) is better than 76.09% of its industry peers.
EVRG's Operating Margin has been stable in the last couple of years.
| 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
EVRG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
EVRG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that EVRG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.80, EVRG perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
A Debt/Equity ratio of 1.36 is on the high side and indicates that EVRG has dependencies on debt financing.
EVRG has a better Debt to Equity ratio (1.36) than 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.61
WACC6.28%
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.
Looking at the Current ratio, with a value of 0.50, EVRG is doing worse than 69.57% of the companies in the same industry.
A Quick Ratio of 0.27 indicates that EVRG may have some problems paying its short term obligations.
With a Quick ratio value of 0.27, EVRG is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
| 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.
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)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
Based on estimates for the next years, EVRG will show a small growth in Earnings Per Share. The EPS will grow by 6.28% on average per year.
Based on estimates for the next years, EVRG will show a small growth in Revenue. The Revenue will grow by 5.01% on average per year.
EPS Next Y8.31%
EPS Next 2Y7.11%
EPS Next 3Y6.68%
EPS Next 5Y6.28%
Revenue Next Year3.97%
Revenue Next 2Y4.05%
Revenue Next 3Y4.15%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.88, the valuation of EVRG can be described as rather expensive.
65.22% of the companies in the same industry are more expensive than EVRG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EVRG to the average of the S&P500 Index (28.64), we can say EVRG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.51, EVRG is valued correctly.
Based on the Price/Forward Earnings ratio, EVRG is valued a bit cheaper than 69.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EVRG to the average of the S&P500 Index (21.44), we can say EVRG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 16.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EVRG is valued a bit cheaper than the industry average as 67.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EVRG may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)3.03
EPS Next 2Y7.11%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.91%, EVRG has a reasonable but not impressive dividend return.
EVRG's Dividend Yield is a higher than the industry average which is at 3.47.
Compared to an average S&P500 Dividend Yield of 2.52, EVRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.23%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
EVRG pays out 68.31% of its income as dividend. 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.
DP68.31%
EPS Next 2Y7.11%
EPS Next 3Y6.68%
68.11
-0.25 (-0.37%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.09%
Inst Owner Change0.3%
Ins Owners0.16%
Ins Owner Change-1.99%
Market Cap15.67B
Analysts80
Price Target73.08 (7.3%)
Short Float %4.1%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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)4.13%
PT rev (3m)10.64%
EPS NQ rev (1m)8.25%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)4.5%
Revenue NQ rev (3m)-10.27%
Revenue NY rev (1m)1.13%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 16.51 | ||
| P/S | 2.68 | ||
| P/FCF | N/A | ||
| P/OCF | 7.9 | ||
| P/B | 1.57 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)3.81
EY5.59%
EPS(NY)4.13
Fwd EY6.06%
FCF(TTM)-1.53
FCFYN/A
OCF(TTM)8.62
OCFY12.66%
SpS25.42
BVpS43.28
TBVpS33.12
PEG (NY)2.15
PEG (5Y)3.03
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 | 0.8 |
F-Score6
WACC6.28%
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 Year3.97%
Revenue Next 2Y4.05%
Revenue Next 3Y4.15%
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%