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 has a expensive valuation and it also scores bad on growth. 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.
EVRG had positive earnings in each of the past 5 years.
Each year in the past 5 years EVRG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.65%, EVRG is in line with its industry, outperforming 47.37% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.51%, EVRG is doing worse than 63.16% of the companies in the same industry.
EVRG's Return On Invested Capital of 3.71% is in line compared to the rest of the industry. EVRG outperforms 44.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EVRG is in line with the industry average of 4.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 8.51% | ||
| ROIC | 3.71% |
ROA(3y)2.67%
ROA(5y)2.57%
ROE(3y)8.34%
ROE(5y)7.98%
ROIC(3y)3.76%
ROIC(5y)3.79%
1.3 Margins
The Profit Margin of EVRG (14.77%) is better than 60.53% of its industry peers.
EVRG's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 24.69%, EVRG is doing good in the industry, outperforming 68.42% 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 | 24.69% | ||
| PM (TTM) | 14.77% | ||
| GM | N/A |
OM growth 3Y-1.86%
OM growth 5Y1.29%
PM growth 3Y1.8%
PM growth 5Y1.16%
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.
EVRG has about the same amout of shares outstanding than it did 1 year ago.
EVRG has less 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 0.81, we must say that EVRG is in the distress zone and has some risk of bankruptcy.
EVRG has a Altman-Z score (0.81) which is comparable to the rest of the industry.
EVRG has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EVRG (1.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.58
WACC6.41%
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's Current ratio of 0.55 is on the low side compared to the rest of the industry. EVRG is outperformed by 86.84% of its industry peers.
A Quick Ratio of 0.32 indicates that EVRG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.32, EVRG is doing worse than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.19% over the past year.
The Earnings Per Share has been growing by 8.42% on average over the past years. This is quite good.
EVRG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.18%.
Measured over the past years, EVRG shows a small growth in Revenue. The Revenue has been growing by 5.20% on average per year.
EPS 1Y (TTM)4.19%
EPS 3Y4.62%
EPS 5Y8.42%
EPS Q2Q%7.45%
Revenue 1Y (TTM)3.18%
Revenue growth 3Y3.88%
Revenue growth 5Y5.2%
Sales Q2Q%8.51%
3.2 Future
EVRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.65% yearly.
The Revenue is expected to grow by 3.64% on average over the next years.
EPS Next Y9.89%
EPS Next 2Y7.7%
EPS Next 3Y6.99%
EPS Next 5Y6.65%
Revenue Next Year0.09%
Revenue Next 2Y1.44%
Revenue Next 3Y2.1%
Revenue Next 5Y3.64%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EVRG is valuated rather expensively with a Price/Earnings ratio of 18.25.
EVRG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of EVRG to the average of the S&P500 Index (29.62), we can say EVRG is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.53, which indicates a correct valuation of EVRG.
60.53% of the companies in the same industry are more expensive than EVRG, based on the Price/Forward Earnings ratio.
EVRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EVRG is valued a bit cheaper than 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.65 |
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)1.84
PEG (5Y)2.17
EPS Next 2Y7.7%
EPS Next 3Y6.99%
5. Dividend
5.1 Amount
EVRG has a Yearly Dividend Yield of 3.97%. Purely for dividend investing, there may be better candidates out there.
EVRG's Dividend Yield is rather good when compared to the industry average which is at 3.50. EVRG pays more dividend than 84.21% of the companies in the same industry.
EVRG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
The dividend of EVRG has a limited annual growth rate of 0.72%.
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)0.72%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
69.24% of the earnings are spent on dividend by EVRG. This is not a sustainable payout ratio.
The dividend of EVRG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.24%
EPS Next 2Y7.7%
EPS Next 3Y6.99%
68.06
+0.81 (+1.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.09%
Inst Owner Change-88.68%
Ins Owners0.16%
Ins Owner Change-7.43%
Market Cap15.65B
Analysts81
Price Target68.79 (1.07%)
Short Float %4.18%
Short Ratio5.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend2.48
Dividend Growth(5Y)0.72%
DP69.24%
Div Incr Years21
Div Non Decr Years21
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.92%
Min EPS beat(2)-0.75%
Max EPS beat(2)2.6%
EPS beat(4)1
Avg EPS beat(4)-5.37%
Min EPS beat(4)-16.82%
Max EPS beat(4)2.6%
EPS beat(8)3
Avg EPS beat(8)-0.79%
EPS beat(12)6
Avg EPS beat(12)-0.23%
EPS beat(16)10
Avg EPS beat(16)3.66%
Revenue beat(2)1
Avg Revenue beat(2)-6.35%
Min Revenue beat(2)-17.21%
Max Revenue beat(2)4.51%
Revenue beat(4)1
Avg Revenue beat(4)-9.04%
Min Revenue beat(4)-20.11%
Max Revenue beat(4)4.51%
Revenue beat(8)3
Avg Revenue beat(8)-3.97%
Revenue beat(12)6
Avg Revenue beat(12)1.2%
Revenue beat(16)8
Avg Revenue beat(16)2.72%
PT rev (1m)4.14%
PT rev (3m)4.95%
EPS NQ rev (1m)-15.52%
EPS NQ rev (3m)-18.93%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)18.17%
Revenue NQ rev (3m)18.17%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 16.53 | ||
| P/S | 2.71 | ||
| P/FCF | N/A | ||
| P/OCF | 7.76 | ||
| P/B | 1.56 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)3.73
EY5.48%
EPS(NY)4.12
Fwd EY6.05%
FCF(TTM)-2.1
FCFYN/A
OCF(TTM)8.77
OCFY12.88%
SpS25.12
BVpS43.59
TBVpS33.43
PEG (NY)1.84
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 8.51% | ||
| ROCE | 5% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 4.02% | ||
| OM | 24.69% | ||
| PM (TTM) | 14.77% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.67%
ROA(5y)2.57%
ROE(3y)8.34%
ROE(5y)7.98%
ROIC(3y)3.76%
ROIC(5y)3.79%
ROICexc(3y)3.76%
ROICexc(5y)3.8%
ROICexgc(3y)4.11%
ROICexgc(5y)4.17%
ROCE(3y)5.03%
ROCE(5y)5.02%
ROICexcg growth 3Y-2.69%
ROICexcg growth 5Y2.12%
ROICexc growth 3Y-2.29%
ROICexc growth 5Y2.51%
OM growth 3Y-1.86%
OM growth 5Y1.29%
PM growth 3Y1.8%
PM growth 5Y1.16%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.18 | ||
| Cap/Depr | 214.54% | ||
| Cap/Sales | 43.24% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 77.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 0.81 |
F-Score6
WACC6.41%
ROIC/WACC0.58
Cap/Depr(3y)211.01%
Cap/Depr(5y)186.36%
Cap/Sales(3y)38.22%
Cap/Sales(5y)33.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.19%
EPS 3Y4.62%
EPS 5Y8.42%
EPS Q2Q%7.45%
EPS Next Y9.89%
EPS Next 2Y7.7%
EPS Next 3Y6.99%
EPS Next 5Y6.65%
Revenue 1Y (TTM)3.18%
Revenue growth 3Y3.88%
Revenue growth 5Y5.2%
Sales Q2Q%8.51%
Revenue Next Year0.09%
Revenue Next 2Y1.44%
Revenue Next 3Y2.1%
Revenue Next 5Y3.64%
EBIT growth 1Y15.88%
EBIT growth 3Y1.95%
EBIT growth 5Y6.55%
EBIT Next Year87.57%
EBIT Next 3Y28.49%
EBIT Next 5Y20.9%
FCF growth 1Y-20.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.45%
OCF growth 3Y4.13%
OCF growth 5Y5.74%