September 5, 2024
Top 10 Stock Evergy Sell Recommendation
How to read the ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Snapshot: Evergy – Top 10 Stock in Nuclear Energy
Evergy is listed as a top 10 stock on September 05, 2024 in the market index Nuclear because of its high performance in at least one of the Obermatt investment strategies. Only the Obermatt Value Rank exhibits above-average performance, which means that the stock is seen as critical by the professional community and other financial facts are below average, conveying mixed investment signals. Based on the Obermatt 360° View of 18 (18% performer), Obermatt issues an overall sell recommendation for Evergy on September 05, 2024.
Snapshot: Obermatt Ranks
| Country | USA |
| Industry | Electric Utilities |
| Index | Low Emissions, Human Rights, Low Waste, Nuclear, S&P 500 |
| Size class | X-Large |
When Obermatt identifies the Top 10 stocks in a market, it’s based on a certain investment strategy. The best performing stocks usually aren’t the ones that everyone is talking about (those are often "over-priced" and have low Value ranks).
For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).
360° View: Obermatt 360° View Evergy Sell
| 360 METRICS | September 5, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 73 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 25 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 24 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 45 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 18 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 18 (better than 18% compared with alternatives), overall professional sentiment and financial characteristics for the stock Evergy are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators below average for Evergy. Only the consolidated Value Rank has an attractive rank of 73, which means that the share price of Evergy is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is lower than for 73% of alternative stocks in the same industry. All other consolidated ranks are below average. The consolidated Growth Rank has a low rank of 25, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. The consolidated Safety Rank has a riskier rank of 24, meaning the company has a riskier financing structure than 76% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, professionals are more pessimistic about the stock than for 55% of alternative investment opportunities, reflected in the consolidated Sentiment Rank of 45. ...read more
RECOMMENDATION: With a consolidated 360° View of 18, Evergy is worse than 82% of all alternative stock investment opportunities based on the Obermatt Method. This means that Evergy shares are on the riskier side for investors. Only one of the consolidated Obermatt Ranks exhibits above-average performance, namely the Value Rank at a level of 73. All other ranks are below average, so proceed with caution. The company has below-average growth expectations (Growth Rank of 25), a riskier financing structure than the competition (Safety Rank of 24), and the market sentiment in the professional investor community ranking at (Sentiment Rank of 45) is negative. This combination is sensitive to a crisis, because high debt levels (low safety) require growth to finance the debt burden. It’s no wonder that the investor community indicators are skeptical (low sentiment). Good value is sometimes an indication that the company's future is challenging. The below-par growth performance may be the reason for this assessment. We recommend evaluating whether the future of Evergy is as challenging as the low price of the stock suggests. Since the professional community is pessimistic, you might need to worry about the future of Evergy. Only invest if you have solid reasons to believe that the low growth is temporary and the current market sentiment is an overreaction, possibly due to reputational issues in the past. ...read more
Sentiment Strategy: Professional Market Sentiment for Evergy only reserved
ANALYSIS: With an Obermatt Sentiment Rank of 45 (better than 45% compared with alternatives), overall professional sentiment and engagement for the stock Evergy is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Evergy. Analyst Opinions are at a rank of 38 (worse than 62% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 58, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Evergy. Even better, the Professional Investors rank is 65, meaning that professional investors hold more stock in this company than in 65% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 50, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 50% of competitors). ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 45 (less encouraging than 55% compared with investment alternatives), Evergy has a reputation among professional investors that is below that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more
Value Strategy: Evergy Stock Price Value better than average
ANALYSIS: With an Obermatt Value Rank of 73 (better than 73% compared with alternatives), Evergy shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Evergy. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 73 which means that the stock price compared with what market professionals expect for future profits is lower than for 73% of comparable companies, indicating a good value concerning Evergy's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 78, and for Dividend Yield with a Dividend Yield Rank of 81. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 56% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 44). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 73, is a buy recommendation based on Evergy's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Evergy has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Evergy shares. ...read more
Growth Strategy: Evergy Growth Momentum low
| GROWTH METRICS | September 5, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 19 |
|
||||||
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 68 |
|
||||||
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 46 |
|
||||||
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 39 |
|
||||||
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 25 |
|
||||||
ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), Evergy shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Evergy. While Profit Growth has a good rank of 68, as professionals currently expect the company to grow its profits more than 68% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 19, which means that currently professionals expect the company to grow less than 81% of its competitors, while Capital Growth has a rank of 46 and Stock Returns have been below market median, with a rank of 39 (61% of alternative investments were better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. ...read more
Safety Strategy: Evergy Debt Financing Safety risky
| SAFETY METRICS | September 5, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 56 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 12 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 35 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 24 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 24 (better than 24% compared with alternatives), the company Evergy has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Evergy is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Evergy and the other two below average. Leverage is at a rank of 56 meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors.Refinancing is at a rank of 12, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 88% of its competitors. Liquidity is at a rank of 35, meaning that the company generates less profit to service its debt than 65% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 24 (worse than 76% compared with alternatives), Evergy has a financing structure that is significantly riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Evergy are on the safer side. ...read more
Combined financial peformance: Evergy Lowest Financial Performance
| COMBINED PERFORMANCE | September 5, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 73 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 25 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 35 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 16 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 16 (worse than 84% compared with investment alternatives), Evergy (Electric Utilities, USA) shares have lower financial characteristics compared with similar stocks. Shares of Evergy are a good value (attractively priced) with a consolidated Value Rank of 73 (better than 73% of alternatives) but show below-average growth (Growth Rank of 25), and are riskily financed (Safety Rank of 24), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 16, is a sell recommendation based on Evergy's financial characteristics. As the company Evergy's key financial metrics exhibit good value (Obermatt Value Rank of 73) but low growth (Obermatt Growth Rank of 25) and risky financing practices (Obermatt Safety Rank of 24), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 73% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. ...read more
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.