Stock Analysis | Evergy Outlook - A Weak Technical Picture Amid Mixed Fundamentals and Fund Flows

Market Snapshot

Evergy is in a weak technical position with bearish signals dominating and a recent price rise not backed by strong momentum. Investors are cautioned to avoid the stock at this time.

News Highlights

Recent news has highlighted several developments that could indirectly affect Evergy:

• Michigan utility partnerships: Michigan is committing $3.5 billion to support local suppliers through its biggest utilities, which could create a more favorable environment for U.S. energy companies, especially those investing in clean energy. This may provide a long-term tailwind for Evergy, though its short-term impact is limited.
• EV adoption incentives: Pakistan is considering a five-year levy on gasoline-powered vehicles to promote electric vehicles, which could indirectly support demand for utilities like Evergy, especially in the longer term as EV infrastructure grows.
• Energy storage advances: Corvus Energy has been selected to supply energy storage systems for four new electric ferries in Canada, highlighting growing interest in renewable energy storage. While not directly linked to Evergy, this points to a broader trend that could support long-term utility growth.

Analyst Views & Fundamentals

Analyst sentiment for Evergy is mixed but slightly optimistic in the short term, with one "Buy" rating from Mizuho's Anthony Crowdell, who has a strong historical track record (100% win rate). However, fundamentals are under pressure.

• Average rating score (simple mean): 4.00
• Weighted rating score (performance-weighted): 5.55
• Rating consistency: Dispersed views suggest a lack of consensus among analysts.
• Price trend vs. expectations: While the current price has risen slightly (0.17%), this is not supported by strong fundamentals or a clear consensus from analysts.

Key Fundamental Values and Model Scores

• Price-to-Cash Flow (PCF): 57.73 – Internal diagnostic score: 3
• Price-to-Earnings (PE): 107.23 – Internal diagnostic score: 1
• Revenue-to-Market Value (Revenue-MV): -0.17 – Internal diagnostic score: 1
• Accounts receivable turnover ratio: 4.09 – Internal diagnostic score: 2
• Non-current assets / Total assets (%): 94.33% – Internal diagnostic score: 1
• Quick ratio: 0.27 – Internal diagnostic score: 0
• Basic earnings per share (YoY growth rate %): -9.79% – Internal diagnostic score: 0
• Long-term debt to working capital ratio (%): 7.18% – Internal diagnostic score: 0
• Cost of sales ratio (%): 69.72% – Internal diagnostic score: 3
• Current assets / Total assets (%): 5.67% – Internal diagnostic score: 2

Overall fundamental score: 2.97 – fundamentals are weak and bearish, which contrasts with some analysts' optimism.

Money-Flow Trends

Despite a slightly positive inflow on the retail side, big money is moving out of Evergy:

• Small investor trend: Positive (52.30% inflow ratio)
• Medium investor trend: Positive (50.38% inflow ratio)
• Large investor trend: Negative (49.55% inflow ratio)
• Extra-large investor trend: Negative (49.89% inflow ratio)
• Overall trend: Negative (49.92% inflow ratio)

Overall fund-flow score: 7.59 – though this is labeled as "good," the divergence between small and large investors suggests a lack of conviction among big money players. This could signal a potential near-term topping pattern.

Key Technical Signals

Evergy's technical picture is weak, with bearish signals dominating and no bullish indicators present in the last 5 days. Here's a breakdown of the internal diagnostic scores and recent patterns:

• Williams %R Overbought: Internal diagnostic score: 3.14 – neutral rise
• Williams %R Oversold: Internal diagnostic score: 3.52 – neutral rise
• Bearish Engulfing: Internal diagnostic score: 5.77 – neutral rise
• MACD Death Cross: Internal diagnostic score: 3.14 – neutral rise
• Earnings Release Date: Internal diagnostic score: 1.00 – biased bearish
• Marubozu White: Internal diagnostic score: 3.79 – neutral rise

Key insights: The technical side is weak, with bearish signals (5) clearly dominating over bullish ones (0). Momentum is unclear and chart patterns suggest a volatile market with no strong direction.

Conclusion

Evergy is currently facing headwinds from both technical and fundamental standpoints. While some analysts are optimistic and small retail flows show interest, the broader market and larger investors are cautious. Given the weak technical signals and bearish momentum, we recommend consider waiting for a clearer trend or a pull-back before initiating any new positions. If you're already invested, it might be wise to monitor the stock closely, especially around its upcoming earnings report.