Stock analysis/Share presentation ⬇️
Today we are talking about the company Evergy: $EVRG (-0,93%)
What is Evergy anyway 🤔
Evergy is a US-based company in the energy sector. Evergy provides electricity to its approximately 1.65 million customers through more than 16,000 kilometers of transmission lines and 97,000 kilometers of distribution lines. The company is the holding company of Kansas City Power & Light Company and Westar Energy. The holding company is engaged in the provision of electricity through its subsidiaries.
When was the company founded: 🧐
The company was founded in 2017 and is headquartered in Kansas City, Missouri.
How many employees does the company have: 🙋🏽♂️🙋🏻♀️
Currently, Evergy employs around 4,500 people.
P/E RATIO:
The company is currently valued at a P/E ratio of about 18, which is not very high.
Market capitalization: 🏦
The company has a current market capitalization of around 12.9 billion euros.
Dividend yield: 💰
The company Evergy pays its shareholders a dividend yield of just under 4.1% per share. This payout gave the first time for shareholders in March 2023.
Strengths of the share: 📈
- The estimates of the various analysts on the development of business activity are relatively similar. This results from good predictability associated with the company's business activity and/or excellent communication from the company to analysts
- The company has been paying its shareholders a nice dividend of over 4% per share since March 2023.
- The stock is not exactly expensively valued with a P/E ratio of 18.
Weaknesses of the share: 📉
- The company's revenue growth forecasts are very weak over the coming reporting periods, according to Standard & Poor's consensus estimates.
- With a high level of net debt and relatively low EBITDA, the company has a weak financial position.
Read more about the industry: ⬇️
Evergy operates in the electric utility market. Companies like Evergy produce and distribute electricity every day so that we can go about our daily lives as we are accustomed. After all, we need electricity in just about every situation in life and usually don't even think about where it comes from. Today, we take it for granted that energy comes from a power socket and that we can charge our smartphones and toast bread.
Electricity is just one of many forms of energy. The big advantage compared to other forms of energy is that electricity can be used very flexibly. The problem with electrical energy is that it does not occur in the wild. Electrical energy must be generated from energy sources such as coal, sunlight and the atoms. The energy must be consumed immediately after generation, otherwise it is lost again.
For this reason, energy suppliers constantly generate new electricity and bring it to our homes through the power grids. Generators extract energy from energy sources and then bring it to consumers through various power grids. Governments enter into long-term contracts with generators and grid operators (often one company in the U.S.) to ensure security of supply. This makes the electricity business secure and non-cyclical.
The USA is the world's second-largest electricity producer, generating around 4,200 billion kWh annually. Only the People's Republic of China is even bigger. Here, 6,500 billion kWh of electricity are already generated per year. The American market currently still relies heavily on fossil fuels such as coal and natural gas. 61% of energy is generated from these two energy sources.
The demand for electricity is growing at an annual rate of 3 to 4 %. According to a study by McKinsey & Company, global electricity consumption is expected to triple by 2050. The reason for this is the growing population and the electrification of industries such as the automotive market. This will make it all the more important for electricity to be generated from renewable energy.
Currently, however, we are still dependent on fossil fuels. After all, the sun doesn't always shine when we need it and the wind may blow too strongly or too weakly. But the shift to renewable energy has picked up speed in recent years. Evergy currently gains about 30% of its capacity from wind power. Over the next ten years, an additional 4,000 megawatts are expected to be generated by wind and solar power.
What is Evergy's goal: 🏁
Evergy's goal is to provide clean, safe and reliable energy today and in the future. The company relies on alternative energy sources to generate more electricity with less impact on the environment, and continually introduces new technologies that allow customers to manage their energy use in ways that benefit them the most.
Already, a large portion of our electricity is generated through renewable energy sources. As electricity is and will continue to be an essential part of our daily lives, the company aims to be able to produce electricity completely without emissions by 2045.
How does the share look from a chart perspective? (US dollars converted into euros) 📈📉
Let's first look at the current price of Evergy. The share is currently at just under €55.80. This is also currently a strong resistance of Evergy. In order to rise further, the share must sustainably break through this resistance. If the share manages that, the next resistance waits at just under 58€. If this resistance is also broken through sustainably, everything would be open at the top for the time being and the next thick resistance would be at just under 63€.
But if we do not take out the resistance at 55.80€ now, we have a support zone at 53.50€ for the time being. This must hold so that the share does not sink further. If this were the case, then the next thicker support zone is waiting at just under 51€.
These are the zones that I will keep an eye on for now.
My opinion: 🧐
I find the company very interesting and will continue to watch it. I find it nice that the company has been paying a dividend since this March. Also, I will keep an eye on my mentioned zones for a possible short term or even long term trade.
Your opinion: 🤔
Now I would like to hear your opinion about this stock in the comments.
What do you think of Evergy and did you already know this company? 🤔
Do you have this stock in your portfolio? 🧐
Feel free to let me know in the comments. ⬇️
This is of course not investment advice but just my own opinion to share with you.
