75.69 USD
-0.54 (-0.71%)
75.04 USD
-0.65 (-0.86%)
EVRG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. While EVRG is still in line with the averages on profitability rating, there are concerns on its financial health. EVRG is valied quite expensively at the moment, while it does show a decent growth rate. EVRG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- EVRG had positive earnings in the past year.
- In the past year EVRG had a positive cash flow from operations.
- In the past 5 years EVRG has always been profitable.
- Each year in the past 5 years EVRG had a positive operating cash flow.
1.2 Ratios
- EVRG's Return On Assets of 2.54% is on the low side compared to the rest of the industry. EVRG is outperformed by 60.87% of its industry peers.
- EVRG has a Return On Equity of 8.26%. This is in the lower half of the industry: EVRG underperforms 73.91% of its industry peers.
- EVRG's Return On Invested Capital of 3.82% is on the low side compared to the rest of the industry. EVRG is outperformed by 63.04% 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 4.58%.
- 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
- The Profit Margin of EVRG (14.45%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of EVRG has grown nicely.
- The Operating Margin of EVRG (25.79%) is better than 84.78% of its industry peers.
- EVRG's Operating Margin has been stable in the last couple of years.
| 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
- 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.
- Compared to 1 year ago, EVRG has a worse debt to assets ratio.
2.2 Solvency
- EVRG has an Altman-Z score of 0.84. This is a bad value and indicates that EVRG is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.84, EVRG is in line with its industry, outperforming 54.35% of the companies in the same industry.
- A Debt/Equity ratio of 1.37 is on the high side and indicates that EVRG has dependencies on debt financing.
- EVRG has a better Debt to Equity ratio (1.37) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
ROIC/WACC0.6
WACC6.34%
2.3 Liquidity
- A Current Ratio of 0.52 indicates that EVRG may have some problems paying its short term obligations.
- The Current ratio of EVRG (0.52) is worse than 89.13% of its industry peers.
- EVRG has a Quick 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.
- EVRG has a Quick ratio of 0.30. This is amonst the worse of the industry: EVRG underperforms 93.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.27% over the past year.
- EVRG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.90% yearly.
- EVRG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.75%.
- EVRG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.58% yearly.
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.
- EVRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.50% yearly.
EPS Next Y6.99%
EPS Next 2Y7.24%
EPS Next 3Y6.96%
EPS Next 5Y7.15%
Revenue Next Year4.41%
Revenue Next 2Y4.27%
Revenue Next 3Y4.49%
Revenue Next 5Y5.5%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 20.24, the valuation of EVRG can be described as rather expensive.
- EVRG's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. EVRG is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 17.27, 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 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 17.27 |
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 | 11.24 |
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.
PEG (NY)2.9
PEG (5Y)3.43
EPS Next 2Y7.24%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
- EVRG has a Yearly Dividend Yield of 3.65%.
- Compared to an average industry Dividend Yield of 2.93, 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 1.82.
| 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 paid a dividend for at least 10 years, which is 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%.