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Evergy, Inc. powers the daily lives of over 1.6 million customers across Kansas and Missouri, weaving energy into the fabric of communities and businesses alike. As a regulated electric utility, Evergy commands a vast network of transmission and distribution lines, delivering electricity generated from a diverse mix of coal, natural gas, nuclear, and renewable sources. Renowned for its blend of innovation and reliability, Evergy stands at a crossroads—does its strong market presence and evolving energy portfolio still justify its current valuation and promise future growth?
Table of contents
Business Model & Company Overview
Evergy, Inc., founded in 2017 and headquartered in Kansas City, Missouri, stands as a dominant force in the regulated electric industry. The company operates a vast ecosystem encompassing generation, transmission, distribution, and sale of electricity across Kansas and Missouri. Its portfolio spans coal, hydroelectric, landfill gas, uranium, natural gas, oil, and renewables, serving over 1.6M customers with a network of more than 62,800 circuit miles of lines.
Evergy’s revenue engine balances traditional and renewable energy sources, leveraging its extensive infrastructure to deliver stable, regulated cash flows. Its presence is primarily regional within the US but critical to local power markets. The company’s broad asset base and regulated framework form a strong economic moat, positioning it to influence the future of energy delivery in its core markets.
Financial Performance & Fundamental Metrics
I will analyze Evergy, Inc.’s income statement, key financial ratios, and dividend payout policy to provide a clear view of its fundamental strength.
Income Statement
The table below summarizes Evergy, Inc.’s key income statement figures over the past five fiscal years, illustrating its financial performance trends.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Revenue | 4.91B | 5.59B | 5.86B | 5.49B | 5.82B |
| Cost of Revenue | 3.41B | 3.85B | 4.16B | 3.82B | 3.93B |
| Operating Expenses | 364M | 381M | 398M | 407M | 453M |
| Gross Profit | 1.51B | 1.74B | 1.70B | 1.67B | 1.90B |
| EBITDA | 2.05B | 2.32B | 2.19B | 2.42B | 2.64B |
| EBIT | 1.10B | 1.37B | 1.21B | 1.28B | 1.47B |
| Interest Expense | 384M | 373M | 404M | 526M | 563M |
| Net Income | 618M | 880M | 753M | 731M | 874M |
| EPS | 2.72 | 3.84 | 3.27 | 3.18 | 3.79 |
| Filing Date | 2021-02-26 | 2022-02-25 | 2023-02-24 | 2023-12-31 | 2025-02-27 |
Income Statement Evolution
From 2020 to 2024, Evergy, Inc. showed steady revenue growth of 18.53%, with a 6.17% increase between 2023 and 2024. Net income grew more robustly by 41.27% over the period, reflecting improved profitability. Margins also advanced, with the gross margin reaching 32.57% and net margin improving by 19.19%, indicating enhanced operational efficiency and cost control.
Is the Income Statement Favorable?
In 2024, Evergy’s fundamentals appear generally favorable. Revenue increased to $5.82B and net income to $873.5M, supported by a 15% net margin and a 25.26% EBIT margin. EBITDA rose to $2.64B, reflecting strong core earnings. Interest expense remains neutral at 9.67% of revenue. Overall, the income statement shows solid growth and margin improvement, with 78.57% of key metrics rated favorable.
Financial Ratios
The table below presents key financial ratios for Evergy, Inc. over the fiscal years 2020 to 2024, offering insight into profitability, liquidity, leverage, and efficiency:
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 12.6% | 15.7% | 12.8% | 13.3% | 15.0% |
| ROE | 7.1% | 9.5% | 7.9% | 7.6% | 8.8% |
| ROIC | 3.8% | 4.4% | 4.4% | 4.2% | 4.5% |
| P/E | 20.4 | 17.9 | 19.2 | 16.8 | 16.2 |
| P/B | 1.44 | 1.70 | 1.53 | 1.27 | 1.42 |
| Current Ratio | 0.69 | 0.55 | 0.53 | 0.51 | 0.50 |
| Quick Ratio | 0.48 | 0.37 | 0.33 | 0.29 | 0.27 |
| D/E | 1.18 | 1.21 | 1.27 | 1.36 | 1.41 |
| Debt-to-Assets | 38.1% | 39.1% | 40.8% | 42.4% | 43.6% |
| Interest Coverage | 3.0 | 3.6 | 3.2 | 2.4 | 2.6 |
| Asset Turnover | 0.18 | 0.20 | 0.20 | 0.18 | 0.18 |
| Fixed Asset Turnover | 0.24 | 0.26 | 0.26 | 0.23 | 0.23 |
| Dividend Yield | 3.7% | 3.2% | 3.7% | 4.6% | 4.2% |
Evolution of Financial Ratios
Over the period from 2020 to 2024, Evergy, Inc.’s Return on Equity (ROE) showed a gradual increase, peaking in 2021 before declining to 8.77% in 2024. The Current Ratio steadily decreased from 0.69 in 2020 to 0.50 in 2024, indicating declining short-term liquidity. The Debt-to-Equity Ratio rose from 1.18 in 2020 to 1.41 in 2024, reflecting increased leverage. Profitability margins improved modestly, with net profit margin reaching 15.0% in 2024.
Are the Financial Ratios Favorable?
In 2024, Evergy displays a mixed financial profile: profitability margins and dividend yield are favorable, with a net margin of 15.0% and dividend yield at 4.21%. However, ROE, Return on Invested Capital (ROIC), and liquidity ratios (Current Ratio 0.5, Quick Ratio 0.27) are unfavorable, signaling limited efficiency and short-term financial risk. Leverage is elevated with a Debt-to-Equity ratio of 1.41, while valuation metrics like Price-to-Earnings (16.23) and Price-to-Book (1.42) ratios are neutral to favorable. Overall, the global ratios evaluation leans slightly unfavorable.
Shareholder Return Policy
Evergy, Inc. maintains a consistent dividend payout with a payout ratio around 68% and a dividend yield near 4.2%, supported by stable dividend per share growth. However, free cash flow coverage is negative, indicating dividends and capex may strain cash flow, and the company also engages in share buybacks.
This distribution approach balances shareholder returns with capital expenditures but raises caution due to negative free cash flow coverage. While dividends and buybacks enhance returns, sustainability depends on future cash flow improvements to support long-term value creation.
Score analysis
The following radar chart presents Evergy, Inc.’s current financial scores based on key valuation and performance metrics:
Evergy shows a mixed performance with a very unfavorable discounted cash flow score of 1, but moderate scores in return on equity (3), return on assets (3), debt to equity (2), price to earnings (2), and price to book (3). Overall, the company’s financial metrics suggest moderate stability with some areas of concern.
Analysis of the company’s bankruptcy risk
The Altman Z-Score places Evergy, Inc. in the distress zone, indicating a high probability of financial distress and potential bankruptcy risk:
Is the company in good financial health?
The Piotroski F-Score diagram illustrates Evergy’s financial health assessment based on nine criteria:
With a Piotroski score of 5, Evergy is considered to have average financial health, reflecting a balanced but cautious outlook on its operational efficiency and profitability metrics.
Competitive Landscape & Sector Positioning
This section provides an overview of Evergy, Inc.’s strategic positioning within the regulated electric utilities sector, including revenue segments and key products. I will assess whether Evergy holds a competitive advantage compared to its main competitors in electricity generation and distribution.
Strategic Positioning
Evergy, Inc. operates a concentrated business model focused entirely on the regulated electric utility sector, serving approximately 1.62M customers primarily in Kansas and Missouri. Its product portfolio includes diverse energy sources such as coal, natural gas, nuclear, hydroelectric, and renewables, supported by extensive transmission and distribution infrastructure.
Revenue by Segment
This pie chart displays the revenue distribution for Evergy, Inc. across its business segments over the fiscal year 2017.
The Electric Utility Segment is the sole reported revenue source, showing steady growth from 2.5B in 2015 to 2.7B in 2017. This segment clearly drives Evergy’s business with no other significant revenue contributors reported in recent years. The slight acceleration in 2017 suggests stable demand, but the company’s concentration risk remains high due to dependence on a single segment.
Key Products & Brands
The following table details Evergy, Inc.’s primary products and brand segments in the electric utility sector:
| Product | Description |
|---|---|
| Electric Utility Segment | Generation, transmission, distribution, and sale of electricity in Kansas and Missouri using diverse energy sources including coal, hydroelectric, landfill gas, uranium, natural gas, oil, solar, wind, and other renewables. Serves residential, commercial, industrial, municipal, and other electric utility customers. |
Evergy’s core product offering centers on regulated electric utilities, delivering electricity through an extensive transmission and distribution network to over 1.6M customers, leveraging a mix of fossil fuels and renewable energy sources.
Main Competitors
There are 23 competitors in the Utilities sector, with the table below listing the top 10 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| NextEra Energy, Inc. | 169B |
| The Southern Company | 96B |
| Duke Energy Corporation | 91B |
| American Electric Power Company, Inc. | 62B |
| Dominion Energy, Inc. | 51B |
| Exelon Corporation | 44B |
| Xcel Energy Inc. | 44B |
| Entergy Corporation | 42B |
| Public Service Enterprise Group Incorporated | 40B |
| Consolidated Edison, Inc. | 36B |
Evergy, Inc. ranks 21st among 23 competitors, with a market cap approximately 10.34% that of the sector leader, NextEra Energy. It is positioned below both the average market cap of the top 10 competitors (67.5B) and the sector median (34B). The company is about 3.24% smaller than its closest competitor above, indicating a modest gap in scale within this competitive field.
Comparisons with competitors
Check out how we compare the company to its competitors:
Does EVRG have a competitive advantage?
Evergy, Inc. currently lacks a strong competitive advantage as it is shedding value with a ROIC below its WACC, classifying its moat status as slightly unfavorable despite growing profitability. Its income statement shows favorable margins and strong growth in net income and earnings per share, supporting operational efficiency but not yet translating into value creation above cost of capital.
Looking ahead, Evergy serves a large customer base in regulated electric markets with diverse energy generation sources including renewables, coal, and nuclear. Opportunities exist in expanding renewable energy production and transmission infrastructure, potentially improving its competitive position as it adapts to evolving energy demands and regulatory environments.
SWOT Analysis
This SWOT analysis provides a clear overview of Evergy, Inc.’s current strategic position, highlighting key factors that can guide investment decisions.
Strengths
- diversified energy sources including renewables
- stable net margin of 15%
- strong revenue and EPS growth over 5 years
Weaknesses
- low liquidity ratios (current ratio 0.5)
- unfavorable return on equity and assets
- high debt-to-equity ratio (1.41)
Opportunities
- expansion in renewable energy market
- growing demand for clean power in US
- potential efficiency improvements in operations
Threats
- regulatory changes impacting utilities
- competition from alternative energy providers
- volatility in fuel prices affecting costs
Overall, Evergy shows solid income growth and a diversified energy mix, but financial leverage and liquidity weaknesses require caution. The company’s strategy should focus on strengthening its balance sheet while capitalizing on renewable energy growth to mitigate regulatory and market threats.
Stock Price Action Analysis
The following weekly chart illustrates Evergy, Inc. (EVRG) stock price movements over the past 12 months, highlighting key highs, lows, and recent fluctuations:
Trend Analysis
Over the past 12 months, EVRG’s stock price increased by 54.09%, indicating a bullish trend with deceleration. The price ranged between a low of 49.12 and a high of 77.98. The standard deviation of 7.88 suggests moderate volatility. Recent weeks show a neutral trend with a minimal 0.13% change, slight negative slope (-0.16), and reduced volatility (1.72).
Volume Analysis
In the last three months, trading volume has been decreasing overall, with total buyer volume at 51.3M and seller volume at 64.3M, reflecting a slightly seller-dominant market (buyer dominance 44.37%). This decline in volume and seller dominance may indicate cautious investor sentiment and reduced market participation.
Target Prices
The consensus target prices for Evergy, Inc. indicate a moderately bullish outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 91 | 76 | 82.67 |
Analysts expect Evergy’s stock price to range between 76 and 91, with an average target around 82.67, reflecting steady confidence in the company’s growth potential.
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Analyst & Consumer Opinions
This section examines the latest grades and consumer feedback related to Evergy, Inc. (EVRG) from analysts and customers.
Stock Grades
Below is a summary of recent grades assigned to Evergy, Inc. by leading financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Overweight | 2026-01-22 |
| Wells Fargo | Maintain | Equal Weight | 2026-01-20 |
| Mizuho | Downgrade | Neutral | 2025-12-18 |
| UBS | Maintain | Buy | 2025-12-17 |
| Citigroup | Maintain | Buy | 2025-11-10 |
| Jefferies | Maintain | Buy | 2025-10-09 |
| Mizuho | Maintain | Outperform | 2025-08-08 |
| Mizuho | Maintain | Outperform | 2025-07-18 |
| Barclays | Maintain | Overweight | 2025-05-30 |
| Citigroup | Maintain | Buy | 2025-05-16 |
The grading trend for Evergy, Inc. shows a stable pattern with most firms maintaining positive ratings such as Buy and Overweight, although Mizuho notably downgraded from Outperform to Neutral in late 2025. Overall, the consensus leans toward Hold, reflecting a balanced view among analysts.
Consumer Opinions
Evergy, Inc. has garnered a mix of consumer sentiments, reflecting both appreciation for its services and concerns that investors should consider.
| Positive Reviews | Negative Reviews |
|---|---|
| Reliable energy supply with minimal outages. | Customer service response times can be slow. |
| Competitive pricing compared to regional providers. | Occasional billing errors reported by customers. |
| Strong commitment to renewable energy initiatives. | Limited options for flexible payment plans. |
Overall, consumers appreciate Evergy’s reliability and green energy focus, but some express frustration with customer support and billing issues. These factors should be weighed for long-term investment decisions.
Risk Analysis
Below is a concise summary of the key risks associated with Evergy, Inc. to consider before investing:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Financial Health | Low Altman Z-Score (0.84) indicates potential bankruptcy risk | High | High |
| Liquidity Risk | Unfavorable current ratio (0.5) and quick ratio (0.27) | Medium | Medium |
| Leverage | High debt-to-equity ratio (1.41) and moderate interest coverage | Medium | Medium |
| Operational Risk | Low asset turnover and fixed asset turnover ratios | Medium | Medium |
| Market Volatility | Beta at 0.646 suggests lower volatility but market swings still possible | Medium | Low |
| Regulatory Risk | Exposure to regulated electric industry may face policy changes | Medium | Medium |
The most critical risks are the company’s financial distress signals, such as the very low Altman Z-score pointing to bankruptcy risk, and weak liquidity metrics, which could challenge short-term obligations amid shifting market conditions. Investors should closely monitor these factors.
Should You Buy Evergy, Inc.?
Evergy, Inc. appears to be navigating a challenging leverage profile with substantial net debt relative to EBITDA, while showing improving operational efficiency and return metrics. Despite a slightly unfavorable moat indicating value erosion, the company’s profitability suggests moderate value creation, meriting a cautious B- rating.
Strength & Efficiency Pillars
Evergy, Inc. presents a solid profitability profile with a net margin of 15.0% and an EBIT margin of 25.26%, indicating effective cost management and operational efficiency. The company’s weighted average cost of capital (WACC) stands at 5.44%, which is higher than its return on invested capital (ROIC) of 4.52%, signaling that Evergy is currently shedding value despite improving profitability trends. Financial health indicators are mixed: the Altman Z-Score at 0.84 places Evergy in the distress zone, while the Piotroski Score of 5 suggests average operational strength.
Weaknesses and Drawbacks
Key risks emerge from Evergy’s leverage and liquidity metrics, with a debt-to-equity ratio of 1.41 and a current ratio of 0.5, both flagged as unfavorable. This high leverage coupled with a low liquidity buffer may constrain financial flexibility in adverse conditions. Valuation multiples are moderate, with a P/E of 16.23 and a P/B of 1.42, reflecting neither significant undervaluation nor overvaluation. Market pressure is evident in recent trading, where seller dominance at 55.63% has slightly dampened price momentum despite a long-term bullish trend.
Our Verdict about Evergy, Inc.
Evergy’s long-term fundamental profile might appear mixed, with moderate profitability but financial health concerns and value destruction indicated by ROIC below WACC. Despite a bullish overall stock trend, recent seller dominance suggests caution. Investors could consider a wait-and-see approach for a more favorable entry point, as the current risk factors might weigh on near-term performance despite underlying operational improvements.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- Jennison Associates LLC Sells 78,044 Shares of Evergy Inc. $EVRG – MarketBeat (Jan 24, 2026)
- Mitsubishi UFJ Trust & Banking Corp Sells 573,511 Shares of Evergy Inc. $EVRG – MarketBeat (Jan 24, 2026)
- Barclays Raises Evergy (EVRG) Price Target to $82.00 | EVRG Stoc – GuruFocus (Jan 22, 2026)
- Evergy: Ride The Wave Of Economic Development To Rising Dividends (NASDAQ:EVRG) – Seeking Alpha (Jan 17, 2026)
- Evergy Inc (EVRG) Misses Q3 Earnings and Revenue Estimates – Yahoo Finance (Nov 06, 2025)
For more information about Evergy, Inc., please visit the official website: evergyinc.com
