Evergy, Inc.EVRGNASDAQ
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Executive Summary
Latest Data: Dec 2024Utilities•Regulated Electric
$18.9BLarge Cap
A mid-sized company, with solid profitability valued in line with the market.
Key Investment Themes
Mature business (6% growth)
Solid 15% profitability
Business Narrative
Evergy, Inc. , together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Kansas and Missouri, the United States. It generates electricity through coal, hydroelectric, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources.
UtilitiesRegulated Electric
Capital Intensive
medium confidence
Revenue Mix
Single segment business
Bull Case
- +Solid profitability with room for margin expansion
Bear Case
- -Negative free cash flow may necessitate future capital raises
Company at a Glance
Business Performance
Key Highlights
Watch Areas
- Negative free cash flow - burning cash
- Current liabilities exceed current assets
Financial Health
Liquidity
Concern
Current Ratio0.50
<1.0 = Weak
Cash & Equivalents$22M
Leverage
Watch
Debt / Equity1.41
1.0-2.0 = Moderate
Interest Coverage2.57x
2-5x = Adequate
Efficiency
Concern
Return on Equity8.8%
8-15% = Fair
Return on Capital4.5%
<8% = Weak
Valuation Assessment
Market Cap
$18.9B
Large Cap
P/E (TTM)
22.3x
In-line
vs 5Y avg: 18.1x (+23%)
P/S (TTM)
3.3x
In-line
vs 5Y avg: 2.5x (+30%)
EV/EBITDA
12.5x
In-line
vs 5Y avg: 11.2x
(+12%)
(+12%)
P/E Historical Range (5Y)
Min: 16.2xAvg: 18.1xNow: 22.3xMax: 20.4x
P/S Historical Range (5Y)
Min: 2.2xAvg: 2.5xNow: 3.3xMax: 2.8x
EV/EBITDA Historical Range (5Y)
Min: 10.5xAvg: 11.2xNow: 12.5xMax: 12.1x
Valuation Corridor
EXPENSIVE
PEG Ratio
1.16
P/E 22.3x / Growth 19.2% = Reasonable
FCF Yield
-1.8%
vs Cost of Capital ~8.0% = Weak
P/E Corridor (5Y)22.3x
16.2xFair: 16.4x-19.8x20.4x
P/S Corridor (5Y)3.3x
2.2xFair: 2.3x-2.7x2.8x
EV/EBITDA Corridor (5Y)12.5x
10.5xFair: 10.6x-11.8x12.1x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | Dec 20 | Dec 21 | Dec 22 | Dec 23 | Dec 24 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 30.7% | 31.1%↑1.4% | 29.1%↓6.7% | 30.4%↑4.5% | 32.6%↑7.2% |
| Operating Margin | 23.3% | 24.3%↑4.5% | 22.3%↓8.5% | 23.0%↑3.1% | 24.8%↑8.0% |
| Net Margin | 12.6% | 15.7%↑25.1% | 12.8%↓18.4% | 13.3%↑3.8% | 15.0%↑12.5% |
| Earnings Yield | - | - | - | - | - |
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