_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Evergy, Inc. (XNYS:EVRG) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
EVRG
Name:
Evergy, Inc. (XNYS:EVRG)
Sector:
- 259600.00K
Industry:
Utilities�Regulated Electric
CEO:
Mr. Terry Bassham
Total Employees:
4,930
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is 3.81% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF EVERGY, INC.(EVRG) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND UTILITIES�REGULATED ELECTRIC INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
68.37
One Month Price Target:
$68.56
Six Month Price Target :
$69.49
Likely Price in One Year's Time:
Ticker:
$70.6
Likely Trading Range Today Under (Normal Volatility)
$68.15
Price Upper limit ($) :
$68.64
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$65.44
This week:
$61.81
This month :
$55.25
Other Primary facts
Market Cap:
15.61B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
229.52M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
16.05%
-16.06%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$81.99
$75.74
$54.75
$61.00
Medium risk (<10%) entry points
Buy Call
Sell Call
$73.71
Buy Put:
Sell Put:
$72.38
$63.01
$64.36
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
EVRG
Sharpe Ratio:
1.22%
Comparison:
EVRG, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is 3.82% higher than the industry
& is -46.64% lower than the market/S&P 500 average
Average Returns/Yield of
EVRG
Daily returns:
0.03%
Weekly returns:
0.17%
Monthly returns:
0.69%
Yearly returns:
7.85%
Comparison of returns:
Average annual returns/yield (last 3 years) is 5.41% above industry average
Classification:
EVRG, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.8
Statistical test of Returns:
EVRG has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.11%
Weekly Volatility:
4.71%
Monthly Volatility:
9.42%
Yearly Volatility:
32.63%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.65%
Volatility in last five trading days has been -21.88% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.29%
Weekly VaR:
-9.60%
Monthly VaR:
-19.19%
How Much Can the price of
EVRG
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-17%
Worst case (decline):
-66.49%
This translates to price declining to:
$57.04
This translates to price declining to:
$22.91
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
EVRG is a 35.46% riskier investment compared to the market/S&P 500 & is 16.05% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 3.81% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
EVRG
Beta in relation to market/S&P 500--0.49
Expected beta in 1 year's time:
0.624
Expected beta in 3 year's time:
0.883
Unlevered (debt free) Beta:
0.257
Beta in relation to Nasdaq (XNAS):
0.558
Beta in relation to all global stocks::
0.865
Beta Comparison & Analysis
Beta of competitors/peers::
0.794
Beta is -38.82% lower than peers
Average Industry Beta:
0.5
Beta is -2.82% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
4.21%
Sustainable growth rate is 20.61% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.018
Alpha is 40.90% above industry average alpha yield
Alpha is 114% higher than market/& is unsustainably high
Analysis of Cost of Capital of
EVRG
Equity cost of capital:
0.065
Equity cost of capital is -1.47% below industry mean WACC
Unlevered (without debt) cost of capital:
3.43%
Before-tax cost of debt:
3.20%
After-tax cost of debt:
2.53%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.53%
WACC is -6.91% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$22.65
Revenue growth rate per share of (3Y):
1.7
Annual revenue growth rate is -1896.07% below industry average
EPS:
$3.52
Expected Annual growth rate of EPS (3Y):
11.01%
Expected future EPS growth rate is -277.96% lower than the Utilities�Regulated Electric industry
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: -2.39%
Equity growth rate per share is -140.71% lower than the industry
Debt per share
$40.29
EBITDA per share
$9.79
Valuation Analysis Today of
EVRG
P/E Ratio:
19.2
P/E Ratio of Competitors/Peers:
14.21
P/E ratio is 35.12% higher than main peers & is -30.64% lower than the industry
Stock price/value with industry average P/E ratio: $97.46
EVRG is -29.85% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $65.06
Present value of the expected future dividends only: $43.97
P/S (Price to Sales ratio):
3.02
Price to sales ratio is 3.98% above the industry mean
P/B (Price to book value ratio):
1.7
-
-
Net income growth rate (3Y):
52.89%
Net income growth rate is -1895.64% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 16.20%
Dividend yeild: 3.29%
Previous Dividend: $0.57
Previous adjusted dividend: $0.57
Previous Dividend: $2.25
Expected next dividend best case: $0.60
Expected next dividend worst case: $0.55
Average dividend payment (long-term): $0.53
Average dividend increase/decrease (growth rate) % per period: 1.29%
Expected next dividend payment date: 19/09/2022
Expected next dividend record date: 18/08/2022
Expected next dividend declaration date: 08/03/2022
Previous dividend payment date: 20/06/2022
Previous dividend record date: 20/05/2022
Previous dividend declaration date: 05/05/2022
Dividend History:
2022-05-19--$0.57
2021-11-18--$0.57
2021-05-20--$0.54
2022-03-04--$0.57
2021-08-19--$0.54
2021-03-05--$0.54
Dividend growth rate is -229.01% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
100.11%
Net debt to equity ratio:
124.96%
Debt to assets ratio:
32.18%
Net debt to assets ratio:
40.16%
Debt-to-asset ratio is -48.81% below industry average
Ability to repay debt:
Interest coverage ratio:
6.07
Interest coverage ratio is 135.60% more than industry average
Looking forward:
Debt growth rate:
8.18%
Annual debt growth is -82% lower than industry average debt growth rate
Debt repayment rate in last quarter: 1.07%
Analysis of Key Statistics
Correlation of price movement with the market:
0.635
Statistical significance of correlation:
EVRG has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.597
Stock price is 6.42% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.597
Correlation of price movement with Nasdaq (^IXIC):
0.04
Covariance of price movement with the market:
0.049
Kurtosis
19.213
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-0.174
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
EVRG
Gross Profit Margin Ratio:
196%
Operating Profit Margin Ratio:
24.82%
Operating profit margin is 113.33% higher than the industry
Net Profit Margin Ratio:
196%
Effective Tax Rate:
11.50%
Effective tax rate is -42.87% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
8.78%
Return on equity (ROE) is -3.46% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
2.82%
Return on assets (ROA) is 21.98% higher than the industry
Financial Leverage:
1.5x
Current Ratio:
0.51
Current ratio is -78.78% below industry average
Cash Conversion Cycle (days):
-102.6
Cash conversion cycle is -208.66% below industry average
The remaining useful life of property plant & equipment is: 6.6 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
1.1M
Each employee generates -62% less revenue than industry average revenue per employee
EBITDA generated per employee:
455.8K
Each employee generates -61% less EBITDA than industry average revenue per employee
Profit generated per employee:
164.4K
Each employee generates -60% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 52.7K
Each employee generates 60% more free cash flow than industry average revenue per employee
Assets/Capital per employee
5.5M
Each employee generates 60% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
EVRG
KOREA ELECTRIC POWER CORPORATION (XNYS:KEP)
BIP
CENTERPOINT ENERGY, INC. (XNYS:CNP)
ATMOS ENERGY CORPORATION (XNYS:ATO)
Enel Americas SA (OTCM:ENIAY)
CNP-PB
THE AES CORPORATION (XNYS:AES)
NI-PB
Essential Utilities, Inc. (XNYS:WTRG)
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
5.20B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
2.61B
2.58B
-
-
-
-
1.29B
1.29B
-
370.40M
960.00M
2.25B
1.29B
810.60M
920.50M
105.90M
810.60M
Statement of Cash Flow
Date:
Period:
244.80M
Differed Income Tax :
400.00K
Stock Based Compensation :
-
Change in Working Capital :
- 112000.00K
Accounts Receivables:
29.80M
Other Working Capital:
- 19000.00K
Other Non-Cash Items:
6.30M
Net Cash Provided by Operating Activities:
265.10M
Investments in PP&E:
- 524700.00K
Net Acquisitions:
-
Purchases of Investments:
- 12600.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
22.20M
-
22.20M
202.10M
612.70M
885.00M
1.72B
21.30B
2.34B
-
733.20M
-
2.64B
27.02B
-
28.74B
396.10M
2.32B
248.00M
-
677.70M
3.39B
9.25B
4.98B
16.11B
-
19.50B
7.21B
2.07B
- 42600.0K
-
March 31, 2022 at 6:00:00 AM
3.91B
9.24B
28.74B
-
11.56B
11.5B
8.70M
- 2700.00K
- 531300.00K
- 100000.00K
-
-
- 131300.00K
493.50M
262.20M
-
- 4000.00K
22.20M
26.20M
265.10M
- 524700.00K
- 259600.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
EVRG
2023
2024
2025
2026
2027
$76.77
$79.27
$81.86
$84.53
$87.29