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 reported adjusted earnings of $2.03 per share for the third quarter of 2025, slightly below analysts' estimates of $2.14 per share. The company's revenue growth was driven by a 2% increase in weather-normalized demand, which was partially offset by higher interest and depreciation expenses. The year-to-date adjusted earnings stood at $3.41 per share, compared to $3.46 per share in the same period last year. Evergy's management narrowed its 2025 adjusted EPS guidance range to $3.92 to $4.02 per share, citing weather headwinds as the primary reason.
Publication Date: Nov -08
The company's operational performance remained strong, with generation availability and grid reliability both favorable to target. Evergy's Wolf Creek nuclear power plant is nearing completion of its 27th refueling outage, with strong safety and overall performance. The company also announced a 4% increase in its quarterly dividend, bringing the annualized dividend to $2.78 per share.
Evergy's growth prospects remain promising, driven by a robust economic development pipeline and opportunities across 15 gigawatts. The company is confident about winning and serving a large portion of this queue, which would transform the size and growth of the company. The Tier 1 large customer load opportunity stands at 4 to 6 gigawatts, with peak demand anticipated to reach 1.2 gigawatts from these customers. Evergy's 5-year capital investment plan is $17.5 billion, with a focus on grid modernization, distribution, and new generation.
To understand what's priced into Evergy's stock, we can look at its valuation metrics. The company has a P/E Ratio of 20.51, P/B Ratio of 4.91, and Dividend Yield of 3.53%. These metrics suggest that the market is expecting a certain level of growth and return from the company. With a ROE of 10.18%, Evergy is generating returns above its cost of capital, indicating a healthy business model.
Evergy's management expects to achieve the top half of a 4% to 6% growth in earnings per share (EPS) in 2026, driven by its large customer load opportunity and investments in infrastructure. The company's capital expenditure and rate base growth forecast are also strong, driven by its $17.5 billion capital plan and 8.5% rate base growth through 2029. Analysts estimate revenue growth of 4.0% for next year, indicating a stable outlook for the company.
Reviewing Evergy (NASDAQ:EVRG) & Kenon (NYSE:KEN)
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Advyzon Investment Management LLC Makes New $324,000 Investment in Evergy Inc. $EVRG
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Evergy Could Make Sense To Buy On Any Dips In The Price
Nov -08
Evergy Inc (EVRG) Q3 2025 Earnings Call Highlights: Navigating Growth Amidst Weather Challenges
Nov -06
Evergy, Inc. (EVRG) Q3 2025 Earnings Call Transcript
Nov -06
Evergy's Q3 Earnings & Revenues Lag Estimates, '25 EPS View Narrowed
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Evergy Inc (EVRG) Misses Q3 Earnings and Revenue Estimates
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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: 5.5
Growth: 4.1
Quality: 5.6
Yield: 8.0
Momentum: 7.5
Volatility: 10.0
1-Year Total Return ->
Value: 5.5
Growth: 4.7
Quality: 4.7
Yield: 7.0
Momentum: 8.5
Volatility: 10.0
1-Year Total Return ->
Value: 5.9
Growth: 5.2
Quality: 4.1
Yield: 8.0
Momentum: 5.5
Volatility: 10.0
1-Year Total Return ->
Value: 5.7
Growth: 3.6
Quality: 4.6
Yield: 8.0
Momentum: 6.5
Volatility: 10.0
1-Year Total Return ->
Value: 6.8
Growth: 4.4
Quality: 4.1
Yield: 8.0
Momentum: 3.5
Volatility: 10.0
1-Year Total Return ->
Value: 6.2
Growth: 4.3
Quality: 3.8
Yield: 5.0
Momentum: 5.0
Volatility: 6.7
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