Stocks breaking to new annual highs
S&P 500 oversold value screener
Relative strength momentum leaders
Upcoming earnings dates & reports
Filter and sort all 500 stocks
Continuous multi-factor scoring & catalyst forensics
Today's biggest gainers and losers
Evergy is a regulated electric utility serving 1.7 million customers across Kansas and Missouri through two primary operating subsidiaries (Evergy Kansas Central, Evergy Metro, Evergy Missouri West). The company operates 9,800 MW of generation capacity with a diversified fuel mix including coal, natural gas, wind, and solar, and maintains 10,000+ miles of transmission lines. Stock performance is driven by regulatory rate case outcomes, capital deployment into rate base ($2.3B annual capex), and execution on renewable energy transition while maintaining 8-9% allowed ROE.
Evergy operates under cost-of-service regulation where state commissions (Kansas Corporation Commission, Missouri Public Service Commission) approve rates designed to recover prudent operating costs plus a return on invested capital (rate base). The company earns allowed ROE of 9.3-9.5% on equity portion of $13B+ rate base. Profitability depends on: (1) growing rate base through capital investments in generation, transmission, and distribution infrastructure, (2) securing timely rate case approvals to recover costs and earn allowed returns, (3) managing regulatory lag between capex deployment and rate recovery, and (4) controlling O&M costs. The business model provides stable, predictable cash flows with limited commodity price exposure due to fuel adjustment clauses that pass through ~90% of fuel cost changes to customers. Key competitive advantage is monopoly service territories with constructive regulatory frameworks in both states.
Rate case outcomes in Kansas and Missouri - allowed ROE, rate base recognition, recovery mechanisms for renewable investments
Capital deployment pace and rate base growth trajectory - $2.3B annual capex driving 6-7% rate base CAGR
Regulatory lag and timing of rate relief - gap between capex spend and rate recovery impacts earned ROE
Renewable energy transition execution - coal plant retirements, wind/solar additions, IRA tax credit monetization
Weather-driven earnings volatility - heating/cooling degree days impact residential demand and quarterly EPS
Interest rate movements affecting valuation multiples - utilities trade inversely to 10-year Treasury yields as bond proxies
Coal generation transition risk - remaining coal fleet (~30% of capacity) faces accelerating retirement pressure from environmental regulations, renewable economics, and state clean energy mandates; stranded asset risk if regulators disallow recovery of undepreciated coal plant balances
Distributed generation and grid defection - rooftop solar adoption (currently <2% penetration) threatens volumetric revenue model; net metering policies in Kansas/Missouri could shift cost recovery burden to non-solar customers
Extreme weather and climate adaptation costs - increasing frequency of severe storms, wildfires, and temperature extremes drives higher capex for grid hardening, vegetation management, and generation reliability; regulatory lag in recovering these costs
Regulatory disallowances - risk that Kansas or Missouri commissions deny full recovery of capital investments, particularly for renewable projects or grid modernization; recent constructive outcomes but political composition of commissions can shift
Municipal aggregation and retail choice - while Kansas/Missouri currently lack retail competition, legislative proposals for customer choice could emerge, threatening monopoly franchise
Debt refinancing risk - $10B debt balance with $800M-1.2B annual maturities exposes company to interest rate volatility; 1% rate increase adds $10M annual interest expense
Pension and OPEB obligations - underfunded pension plans require ongoing contributions that compete with capital deployment; interest rate sensitivity in discount rates affects funded status
Capex funding gap - negative $400M free cash flow reflects $2.3B capex exceeding $2.0B operating cash flow; requires $1B+ annual debt/equity issuance, diluting existing shareholders and increasing leverage
low - Electric utility demand is non-discretionary with 60% residential/commercial mix providing stability. Industrial load (~20% of sales) has modest cyclical exposure through manufacturing customers, but overall load growth correlates weakly with GDP. Weather drives more quarterly variance than economic cycles. Recession scenarios show 1-3% demand decline historically, manageable through cost controls.
High sensitivity through two channels: (1) Financing costs - $10B debt balance means rising rates increase interest expense on refinancings and new debt to fund $2.3B annual capex, though partially offset by higher allowed ROE in rate cases using updated capital costs. (2) Valuation compression - as a 3.5% dividend yielding stock, Evergy trades inversely to 10-year Treasury yields; 100bps rise in 10-year typically compresses utility P/E multiples by 1-2 turns as investors rotate from dividend stocks to bonds. Current 1.43x debt/equity and BBB+ credit rating provide adequate financial flexibility but limit tolerance for rate increases.
Minimal - Regulated utility with no direct lending exposure. Customer credit risk is low given essential service and ability to disconnect for non-payment. Uncollectible accounts run 0.3-0.5% of revenue. Wholesale counterparty exposure limited to Southwest Power Pool settlements with investment-grade utilities.
dividend - Evergy attracts income-focused investors seeking stable 3.5% dividend yield with 6-7% annual dividend growth target. The regulated utility model provides predictable earnings and cash flows, appealing to conservative portfolios, pension funds, and retirees. Limited growth upside (6-8% EPS CAGR guidance) makes it less attractive to growth investors. Recent 23.6% one-year return reflects multiple expansion as rates stabilized, but long-term returns driven by dividend yield plus modest earnings growth.
low - Beta typically 0.3-0.5 reflecting non-cyclical regulated utility characteristics. Daily volatility driven more by interest rate moves and sector rotation than company-specific news. Quarterly earnings can show 10-20% variance due to weather, but annual results are predictable within 5% range. Regulatory decisions (rate cases) create event risk but occur infrequently.
