GICS Sector : Utilities
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.The company has approximately 10,100 circuit miles of transmission lines; 39,800 circuit miles of overhead distribution lines; and 13,000 circuit miles of underground distribution lines.
Evergy's financial performance in 2025 was impacted by weather and weak industrial demand, with adjusted earnings of $894 million or $3.83 per share. The company's EPS was lower than analyst estimates of $0.57, with actual EPS coming in at $0.42, driven by higher operation and maintenance costs, depreciation, and interest expense. Revenue growth is expected to be 5.0% next year, according to analyst estimates.
Publication Date: Feb -24
The company made significant progress in advancing economic development opportunities, growing its pipeline to over 15 gigawatts and executing electric service agreements for 4 data center projects, representing 1.9 gigawatts of steady-state peak demand. This is expected to drive affordability benefits for customers and support economic growth in Kansas and Missouri. The company's capital investment plan totals approximately $21.6 billion from 2026 to 2030, with a focus on generation investment and grid modernization.
Evergy is raising its long-term adjusted EPS growth target to 6% to 8% plus through 2030, driven by the execution of ESAs with large load customers. The company expects EPS growth to exceed 8% annually beginning in 2028, with a 6% to 8% plus overall formulation. The company's rate base growth is expected to be 11.5% annually, with a 250 basis point gap between rate base growth and earnings growth.
Evergy's current valuation metrics indicate a P/E Ratio of 22.12, P/B Ratio of 1.85, and EV/EBITDA of 12.68. The company's Dividend Yield is 3.29%, with a payout ratio expected to decline over time to a revised target of 50% to 60%. The stock's current valuation suggests that investors are pricing in a certain level of growth, which is being supported by the company's recent developments and growth outlook.
The company's financing plan includes a mix of debt, equity, and hybrid securities, targeting an FFO to debt ratio of approximately 14%. The plan assumes $13.5 billion of cash flow from operations, $3.6 billion in dividend payments, and $8.4 billion of incremental debt and hybrid securities. Evergy expects to issue approximately $700 million to $900 million of equity annually from 2026 to 2029, with no equity issuances assumed in 2030.
Critical Survey: Evergy (NASDAQ:EVRG) vs. Summer Energy (OTCMKTS:SUME)
Mar -07
Evergy Inc. $EVRG Stock Position Lessened by Dakota Wealth Management
Feb -26
Evergy Inc (EVRG) Q4 2025 Earnings Call Highlights: Strategic Investments and Growth Targets Amid Challenges
Feb -19
Evergy, Inc. (EVRG) Q4 2025 Earnings Call Transcript
Feb -19
Evergy's Q4 Earnings Miss Estimates, Revenues Increase Y/Y
Feb -19
Evergy Inc (EVRG) Lags Q4 Earnings Estimates
Feb -19
Evergy forecasts 2026 profit below estimates, launches new five-year capex plan
Feb -19
Evergy Releases 2025 Results, Announces New Large Customers, Declares Quarterly Dividend and Establishes 2026 Guidance
Feb -19
Residential segment growth of 3.5% driven by increasing electricity demand from new housing developments, rising adoption of electric vehicles, and energy-efficient appliances, as well as favorable weather patterns and steady economic growth in Evergy's service territories.
Evergy's commercial segment growth of 3.8% is driven by increasing demand for electricity from businesses, expansion of data centers and cloud infrastructure, and investments in renewable energy. Additionally, the company's focus on energy efficiency programs, grid modernization, and strategic acquisitions contribute to the growth.
Evergy's Industrial segment growth of 4.2% is driven by increasing demand from data centers and cloud computing, expansion of manufacturing facilities, and investments in renewable energy. Additionally, the segment benefits from the company's focus on grid modernization and infrastructure upgrades, leading to improved efficiency and reliability.
Evergy's transmission segment growth of 4.5% is driven by increasing demand for reliable and efficient energy transmission, investments in grid modernization, and expansion of renewable energy sources. Additionally, the company's focus on infrastructure upgrades, smart grid technologies, and strategic acquisitions contribute to its growth momentum.
Evergy's wholesale segment growth of 3.2% is driven by increasing demand from commercial and industrial customers, favorable weather conditions, and strategic investments in transmission and distribution infrastructure. Additionally, the company's focus on renewable energy sources and energy efficiency programs contributes to the growth.
Evergy's 3.0% growth is driven by increasing demand for renewable energy, favorable weather conditions, and strategic investments in grid modernization. Additionally, the company's focus on cost savings initiatives and operational efficiencies have contributed to its growth. Furthermore, Evergy's expansion into new markets and customer growth have also supported its growth momentum.
Evergy's Other Retail segment growth of 3.5% is driven by increasing demand for renewable energy solutions, strategic partnerships with commercial and industrial customers, and effective cost management. Additionally, investments in grid modernization and smart meter infrastructure have improved operational efficiency, contributing to the segment's growth.
Evergy's Industrial Stream and Other segments are driven by a 4.0% growth rate, primarily due to increasing demand for electricity from industrial customers, expansion of data centers, and growth in transportation electrification. Additionally, investments in grid modernization and renewable energy sources contribute to the segment's growth.
Evergy, Inc. generates, transmits, and distributes electricity to residential, commercial, and industrial customers.
Evergy, Inc. offers renewable energy solutions, including wind and solar power, to customers seeking sustainable energy options.
Evergy, Inc. provides energy efficiency programs and services to help customers reduce energy consumption and lower their energy bills.
Evergy, Inc. owns and operates transmission and distribution infrastructure to deliver electricity to customers.
Evergy, Inc. offers energy management services, including energy audits and consulting, to help customers optimize their energy usage.
The threat of substitutes for Evergy, Inc. is medium due to the availability of alternative energy sources such as solar and wind power.
The bargaining power of customers for Evergy, Inc. is low due to the lack of alternative energy providers in the region.
The bargaining power of suppliers for Evergy, Inc. is medium due to the dependence on a few large suppliers for fuel and equipment.
The threat of new entrants for Evergy, Inc. is low due to the high barriers to entry in the energy industry, including regulatory hurdles and high capital costs.
The intensity of rivalry for Evergy, Inc. is high due to the competitive nature of the energy industry, with multiple players competing for market share.
| Value | |
|---|---|
| Debt Weight | 57.68% |
| Debt Cost | 4.35% |
| Equity Weight | 42.32% |
| Equity Cost | 6.77% |
| WACC | 5.37% |
| Leverage | 136.32% |
Value: 5.8
Growth: 4.7
Quality: 4.4
Yield: 8.0
Momentum: 8.5
Volatility: 10.0
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Value: 6.9
Growth: 4.3
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Value: 5.4
Growth: 3.6
Quality: 4.9
Yield: 8.0
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Value: 6.5
Growth: 5.1
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Value: 4.9
Growth: 4.3
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Yield: 4.0
Momentum: 7.0
Volatility: 3.3
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