77.09 USD
+0.5 (+0.65%)
77.09 USD
0 (0%)
EVRG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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. While showing a medium growth rate, EVRG is valued expensive at the moment. Finally 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.
- Each year in the past 5 years EVRG has been profitable.
- EVRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EVRG has a Return On Assets of 2.54%. This is in the lower half of the industry: EVRG underperforms 60.87% of its industry peers.
- EVRG has a worse Return On Equity (8.26%) than 73.91% of its industry peers.
- The Return On Invested Capital of EVRG (3.82%) is worse than 63.04% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EVRG is in line with the industry average of 4.58%.
- The 3 year average ROIC (3.70%) for EVRG is below the current ROIC(3.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 8.26% | ||
| ROIC | 3.82% |
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 has a Profit Margin (14.45%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of EVRG has grown nicely.
- EVRG has a Operating Margin of 25.79%. This is amongst the best in the industry. EVRG outperforms 84.78% of its industry peers.
- 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 | 25.79% | ||
| PM (TTM) | 14.45% | ||
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EVRG is destroying value.
- The number of shares outstanding for EVRG remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, EVRG has more shares outstanding
- EVRG has a worse debt/assets ratio than last year.
2.2 Solvency
- EVRG has an Altman-Z score of 0.85. This is a bad value and indicates that EVRG is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.85, EVRG perfoms like the industry average, outperforming 54.35% of the companies in the same industry.
- EVRG has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
- EVRG has a Debt to Equity ratio of 1.37. This is in the better half of the industry: EVRG outperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.85 |
ROIC/WACC0.6
WACC6.36%
2.3 Liquidity
- EVRG has a Current Ratio of 0.52. 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 0.52, EVRG is doing worse than 89.13% of the companies in the same industry.
- A Quick Ratio of 0.30 indicates that EVRG may have some problems paying its short term obligations.
- With a Quick ratio value of 0.30, EVRG is not doing good in the industry: 93.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
- EVRG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.27%.
- 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 1.75%.
- The Revenue has been growing slightly by 2.58% on average over the past years.
EPS 1Y (TTM)0.27%
EPS 3Y2.48%
EPS 5Y5.9%
EPS Q2Q%0.5%
Revenue 1Y (TTM)1.75%
Revenue growth 3Y1.53%
Revenue growth 5Y2.58%
Sales Q2Q%-0.08%
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 7.15% on average per year.
- Based on estimates for the next years, EVRG will show a small growth in Revenue. The Revenue will grow by 5.50% on average per year.
EPS Next Y6.99%
EPS Next 2Y7.24%
EPS Next 3Y6.96%
EPS Next 5Y7.15%
Revenue Next Year4.4%
Revenue Next 2Y4.35%
Revenue Next 3Y4.56%
Revenue Next 5Y5.5%
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 accelerating.
- 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 20.61, the valuation of EVRG can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as EVRG.
- When comparing the Price/Earnings ratio of EVRG to the average of the S&P500 Index (28.87), we can say EVRG is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 17.59, EVRG is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as EVRG.
- EVRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 17.59 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EVRG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.31 |
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)2.95
PEG (5Y)3.49
EPS Next 2Y7.24%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.65%, EVRG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.90, EVRG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, EVRG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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 71.71% 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.
DP71.71%
EPS Next 2Y7.24%
EPS Next 3Y6.96%
EVERGY INC / EVRG FAQ
What is the ChartMill fundamental rating of EVERGY INC (EVRG) stock?
ChartMill assigns a fundamental rating of 3 / 10 to EVRG.
What is the valuation status of EVERGY INC (EVRG) stock?
ChartMill assigns a valuation rating of 2 / 10 to EVERGY INC (EVRG). This can be considered as Overvalued.
How profitable is EVERGY INC (EVRG) stock?
EVERGY INC (EVRG) has a profitability rating of 5 / 10.
What is the earnings growth outlook for EVERGY INC?
The Earnings per Share (EPS) of EVERGY INC (EVRG) is expected to grow by 6.99% in the next year.
Is the dividend of EVERGY INC sustainable?
The dividend rating of EVERGY INC (EVRG) is 7 / 10 and the dividend payout ratio is 71.71%.