Evergy, Inc. (EVRG)
Fair ValueFundamental
52
Price
$77.97
Market Cap
$17.91B
Part 1 · What the company is worth
Overview
Evergy owns two regulated electric utilities, Evergy Kansas Central and Evergy Metro, that generate and deliver power to homes and businesses across Kansas and parts of Missouri, including the Kansas City area. Like other regulated utilities it does not compete for customers within its territory; instead it builds and maintains power plants and grid infrastructure and asks state regulators to approve the rates it can charge to recover those costs.
How it makes money
Customers pay metered rates set through regulatory rate cases, in which Evergy asks state commissions to approve charges that let it recover its costs and earn a set return on capital invested in generation and grid assets. In 2025 Evergy Kansas Central sought roughly $196 million in additional annual retail revenue through such a filing, and new rates from an earlier case added about $128 million during the year — illustrating how earnings growth is tied to the pace and outcome of these regulatory proceedings rather than to selling more electricity.
Competitive moat
Scale · NarrowDuplicating a power grid and generation fleet to compete for the same customers is not economically realistic, so Evergy operates as a practical monopoly within its service territory. The advantage is narrow rather than wide because state regulators, not the company, decide the prices it can charge and the profit it is allowed to earn.
What drives demand
DefensiveElectricity is a necessity that households and businesses keep buying regardless of economic conditions, so baseline demand is stable and driven mainly by weather and population trends rather than the business cycle. New large industrial and data-center customers, which Evergy has highlighted as a growth source, add a variable, less predictable layer on top of that stable base.
Key risks
- Outcome and timing of rate cases — Earnings growth depends on Kansas and Missouri regulators approving the rate increases Evergy requests to recover its investments; a smaller or delayed approval slows growth directly.
- Large capital investment program — Funding grid upgrades and new generation requires ongoing debt and equity financing; higher interest rates or construction cost inflation raise the cost of that program and pressure returns.
- Weather dependence — Unusually mild winters or summers reduce heating and cooling demand and can lower revenue in a given period independent of the underlying customer count.
- Large-load customers may not materialize as planned — New large industrial and data-center load is a highlighted growth driver, but such projects can be delayed, scaled back or cancelled, leaving planned grid investment ahead of actual demand.
The case for
Buyers argue that a regulated monopoly with predictable rate-case-driven earnings, now supplemented by new large industrial and data-center customers, offers steady growth largely insulated from the broader economic cycle.
The case against
Sellers fear that regulators could approve smaller or slower rate increases than the capital plan assumes, and that some of the large new customers driving the growth narrative fail to materialize at the scale currently projected.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
The other large regulated electric utility in Missouri, answering to the same Missouri Public Service Commission and courting the same industrial and data-centre loads deciding where to site in the state.
A vertically integrated regulated electric utility next door in Oklahoma that bids into the same Southwest Power Pool marketplace where Evergy sells the power its retail customers do not absorb.
Through Public Service Company of Oklahoma and Southwestern Electric Power, it is an investor-owned member of the same Southwest Power Pool market and bids the same regional generation revenue.
Its Southwestern Public Service arm participates in the same SPP marketplace, and the group competes with Evergy for the regulatory approvals and investor capital that fund grid and generation build-out.
Serves electricity in southwest Missouri and southeast Kansas immediately alongside Evergy's territory, under the same two state regulators and inside the same SPP wholesale market.
Balance Sheet & Liquidity
Revenue
$5.76B
Trailing 12 months (through 3/31/2026)
Net Income
$882M
Trailing 12 months (through 3/31/2026)
Free Cash Flow
$-752M
Total Equity
$10.22B
Total Liabilities
$23.68B
Current Ratio
0.45
Interest Coverage
2.44
Debt/EBITDA
5.74
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$67.57
Current Price
$77.97
Margin of Safety
-15.4%
Fair Value Range
$49.64 - $85.49
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
20.86
ROE
8.4%
P/B Ratio
1.78
P/FCF
-
Gross Margin
-
ROIC
4.1%
Profitability Radar
Value Creation (Economic Moat)
ROIC
4.1%
WACC
5.8%
ROIC − WACC
-1.7 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (13)
- EPS shows upward trend
- P/B Ratio 1.78
- Debt/Equity ratio
- Operating Margin 27.1%
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 9.1%
- Revenue Growth 5Y 76.4%
- Analyst Consensus 68% Buy
- Earnings Quality (OCF/NI) 2.22
- Share Dilution 1.4%
Failed (11)
- EPS CAGR 4.66%
- Price CAGR 3.36%
- ROIC 4.1%
- Positive Free Cash Flow
- Current Ratio
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings Surprise avg -5.5%
- PEG Ratio 3.16
- Net Margin Trend 15.3% vs 15.3%
- Piotroski F-Score 3/9
Unavailable (4)
- Gross Margin NaN%
- P/FCF NaN
- Dividend Payout NaN%
- CapEx intensity
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. David A. Campbell J.D. | CEO, President & Chairman of the Board | 57 |
| Ms. Heather A. Humphrey J.D. | Senior VP, General Counsel & Corporate Secretary | 54 |
| Mr. Charles A. Caisley | Executive Vice President of Utility Operations & Chief Customer Officer | 52 |
| Mr. Cleveland O. Reasoner III | Senior VP & Chief Nuclear Officer | 59 |
| Mr. Matthew B. Gummig | VP & Chief Accounting Officer | 39 |
| Mr. Peter Francis Flynn | Director of Investor Relations | - |
| Ms. Katie McDonald | Vice President of Public Affairs | - |
| Mr. John T. Bridson | Senior Vice President of Generation & Operations Support | 56 |
| Mr. Darrin R. Ives | Senior Vice President of Regulatory & Government Affairs | 55 |
| Ms. Kara Larson | VP, Chief Ethics Officer and Assistant General Counsel | - |
Audit Risk
7
Board Risk
4
Compensation Risk
1
Shareholder Rights Risk
4
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-19
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-06
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-16
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for EVRG, sourced from Markets Gazette.