Evergy, Inc. (EVRG) stock analysis

P/E above its 5-year median

Evergy's P/E of 22.4 is above its own 5-year median of 18.1.

P/E above the industry

Evergy's P/E of 22.4 is above the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA above its 5-year median

Evergy's EV/EBITDA of 12.3 is above its 5-year median of 11.1.

P/B above the industry

Evergy's price-to-book of 1.99 is above the Combination Electric and Gas, and Other Utility median of 1.74.

Trading above fair value

The share price of $88.34 is above our fair value estimate of $76.63.

Margin of safety under 20%

The price is 15.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 3.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 10.2% over the last twelve months, against a 5-year average of 6.7% a year.

Growing slower than the industry

Revenue grew 3.6% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.2%.

Guidance unchanged

The latest outlook (2026 adjusted EPS (non-GAAP), Aug 6, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 9.2% over the last twelve months and averaged 8.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.4%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Evergy's return on equity of 9.2% is below the Combination Electric and Gas, and Other Utility median of 9.2%.

Earnings grew over 5 years

Net income grew 6.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 15.2% over the last twelve months, against a 5-year average of 14.2%.

Net margin above the industry

Evergy's net margin of 15.2% is above the Combination Electric and Gas, and Other Utility median of 12.7%.

High debt

Debt is 135% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 110% five years ago to 135%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 14.4% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.5 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.36 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.80; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Evergy paid dividends worth 3.1% of the share price over the last twelve months.

Yield below Treasuries

The 3.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Evergy yields 3.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 67.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.