Evergy, Inc.

Regulated electric utility with strong margins and stable, mid-single-digit returns.

Strengths

• Operating margin 26.9% (94th pct) and net margin 15% (77th pct); OCF margin 89th pct
• Regulated monopoly with durable, predictable rate-based earnings

Risks

• ROE 8.4% and ROA 2.5% are mid-pack; revenue flat and net income down
• Negative FCF and low current ratio reflect heavy capex (normal for utilities) but limit flexibility

Notable findings

• Cash burnNegative free cash flow (-751.7M)
• Weak liquidityCurrent ratio 0.49 (<1)