NISOURCE INC (NI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NI - US65473P1057 - Common Stock
41.25 USD
-0.18 (-0.43%)
41.25 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NI. NI was compared to 26 industry peers in the Multi-Utilities industry. While NI has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, NI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
NI had positive earnings in the past year.
In the past year NI had a positive cash flow from operations.
Of the past 5 years NI 4 years were profitable.
In the past 5 years NI always reported a positive cash flow from operatings.
1.2 Ratios
NI has a worse Return On Assets (2.60%) than 61.54% of its industry peers.
NI's Return On Equity of 9.80% is in line compared to the rest of the industry. NI outperforms 53.85% of its industry peers.
NI has a Return On Invested Capital of 4.53%. This is amongst the best in the industry. NI outperforms 92.31% of its industry peers.
NI had an Average Return On Invested Capital over the past 3 years of 4.05%. This is in line with the industry average of 3.94%.
The 3 year average ROIC (4.05%) for NI is below the current ROIC(4.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 9.8% | ||
| ROIC | 4.53% |
ROA(3y)2.42%
ROA(5y)1.82%
ROE(3y)8.79%
ROE(5y)6.55%
ROIC(3y)4.05%
ROIC(5y)4%
1.3 Margins
NI has a Profit Margin of 14.12%. This is in the better half of the industry: NI outperforms 69.23% of its industry peers.
In the last couple of years the Profit Margin of NI has grown nicely.
NI has a Operating Margin of 27.54%. This is amongst the best in the industry. NI outperforms 92.31% of its industry peers.
NI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 76.62%, NI belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Gross Margin of NI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.54% | ||
| PM (TTM) | 14.12% | ||
| GM | 76.62% |
OM growth 3Y9.04%
OM growth 5Y1.39%
PM growth 3Y7.76%
PM growth 5Y16.53%
GM growth 3Y3.45%
GM growth 5Y2.36%
2. Health
2.1 Basic Checks
NI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NI has more shares outstanding
NI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that NI is in the distress zone and has some risk of bankruptcy.
NI's Altman-Z score of 0.74 is in line compared to the rest of the industry. NI outperforms 46.15% of its industry peers.
NI has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
NI has a Debt to Equity ratio (1.73) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.72
WACC6.29%
2.3 Liquidity
NI has a Current Ratio of 0.52. This is a bad value and indicates that NI is not financially healthy enough and could expect problems in meeting its short term obligations.
NI has a Current ratio of 0.52. This is amonst the worse of the industry: NI underperforms 88.46% of its industry peers.
NI has a Quick Ratio of 0.52. This is a bad value and indicates that NI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NI (0.39) is worse than 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.03% over the past year.
The Earnings Per Share has been growing slightly by 5.80% on average over the past years.
Looking at the last year, NI shows a quite strong growth in Revenue. The Revenue has grown by 19.62% in the last year.
The Revenue has been growing slightly by 0.93% on average over the past years.
EPS 1Y (TTM)5.03%
EPS 3Y7.72%
EPS 5Y5.8%
EPS Q2Q%-5%
Revenue 1Y (TTM)19.62%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%18.28%
3.2 Future
The Earnings Per Share is expected to grow by 9.73% on average over the next years. This is quite good.
NI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.73% yearly.
EPS Next Y10.83%
EPS Next 2Y9.61%
EPS Next 3Y9.19%
EPS Next 5Y9.73%
Revenue Next Year3.36%
Revenue Next 2Y3.61%
Revenue Next 3Y3.84%
Revenue Next 5Y5.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.94, NI is valued on the expensive side.
Based on the Price/Earnings ratio, NI is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
NI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.22.
With a Price/Forward Earnings ratio of 19.62, NI is valued on the expensive side.
84.62% of the companies in the same industry are cheaper than NI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NI to the average of the S&P500 Index (23.58), we can say NI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
NI's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)3.78
EPS Next 2Y9.61%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.64, NI's dividend is way lower than its industry peers. On top of this 92.31% of the companies listed in the same industry pay a better dividend than NI!
NI's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
The dividend of NI has a limited annual growth rate of 2.55%.
NI has been paying a dividend for at least 10 years, so it has a reliable track record.
NI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.55%
Div Incr Years13
Div Non Decr Years20
5.3 Sustainability
NI pays out 58.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.24%
EPS Next 2Y9.61%
EPS Next 3Y9.19%
41.25
-0.18 (-0.43%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.8%
Inst Owner Change-3.57%
Ins Owners0.23%
Ins Owner Change-0.36%
Market Cap19.68B
Revenue(TTM)6.33B
Net Income(TTM)893.50M
Analysts84.35
Price Target47.95 (16.24%)
Short Float %2.48%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend1.07
Dividend Growth(5Y)2.55%
DP58.24%
Div Incr Years13
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.86%
Min EPS beat(2)-6.79%
Max EPS beat(2)3.06%
EPS beat(4)2
Avg EPS beat(4)0.29%
Min EPS beat(4)-6.79%
Max EPS beat(4)5.94%
EPS beat(8)5
Avg EPS beat(8)5.22%
EPS beat(12)8
Avg EPS beat(12)5.01%
EPS beat(16)9
Avg EPS beat(16)2.55%
Revenue beat(2)2
Avg Revenue beat(2)4.41%
Min Revenue beat(2)1.66%
Max Revenue beat(2)7.16%
Revenue beat(4)3
Avg Revenue beat(4)2.47%
Min Revenue beat(4)-7.74%
Max Revenue beat(4)8.78%
Revenue beat(8)3
Avg Revenue beat(8)-6.56%
Revenue beat(12)5
Avg Revenue beat(12)-3.68%
Revenue beat(16)8
Avg Revenue beat(16)-2.13%
PT rev (1m)2.86%
PT rev (3m)4.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)16.07%
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 19.62 | ||
| P/S | 3.11 | ||
| P/FCF | N/A | ||
| P/OCF | 8.99 | ||
| P/B | 2.16 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 11.9 |
EPS(TTM)1.88
EY4.56%
EPS(NY)2.1
Fwd EY5.1%
FCF(TTM)-1.42
FCFYN/A
OCF(TTM)4.59
OCFY11.12%
SpS13.26
BVpS19.11
TBVpS15.99
PEG (NY)2.03
PEG (5Y)3.78
Graham Number28.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 9.8% | ||
| ROCE | 5.64% | ||
| ROIC | 4.53% | ||
| ROICexc | 4.54% | ||
| ROICexgc | 4.77% | ||
| OM | 27.54% | ||
| PM (TTM) | 14.12% | ||
| GM | 76.62% | ||
| FCFM | N/A |
ROA(3y)2.42%
ROA(5y)1.82%
ROE(3y)8.79%
ROE(5y)6.55%
ROIC(3y)4.05%
ROIC(5y)4%
ROICexc(3y)4.17%
ROICexc(5y)4.07%
ROICexgc(3y)4.42%
ROICexgc(5y)4.34%
ROCE(3y)5.19%
ROCE(5y)5.04%
ROICexgc growth 3Y3.4%
ROICexgc growth 5Y-4.29%
ROICexc growth 3Y3.95%
ROICexc growth 5Y-3.9%
OM growth 3Y9.04%
OM growth 5Y1.39%
PM growth 3Y7.76%
PM growth 5Y16.53%
GM growth 3Y3.45%
GM growth 5Y2.36%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.48 | ||
| Cap/Depr | 253.71% | ||
| Cap/Sales | 45.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 0.74 |
F-Score6
WACC6.29%
ROIC/WACC0.72
Cap/Depr(3y)287.5%
Cap/Depr(5y)277.1%
Cap/Sales(3y)47.4%
Cap/Sales(5y)44.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.03%
EPS 3Y7.72%
EPS 5Y5.8%
EPS Q2Q%-5%
EPS Next Y10.83%
EPS Next 2Y9.61%
EPS Next 3Y9.19%
EPS Next 5Y9.73%
Revenue 1Y (TTM)19.62%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%18.28%
Revenue Next Year3.36%
Revenue Next 2Y3.61%
Revenue Next 3Y3.84%
Revenue Next 5Y5.73%
EBIT growth 1Y23.7%
EBIT growth 3Y13.01%
EBIT growth 5Y2.33%
EBIT Next Year85.69%
EBIT Next 3Y31.26%
EBIT Next 5Y24.21%
FCF growth 1Y17.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.69%
OCF growth 3Y13.52%
OCF growth 5Y2.39%
NISOURCE INC / NI FAQ
What is the ChartMill fundamental rating of NISOURCE INC (NI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to NI.
Can you provide the valuation status for NISOURCE INC?
ChartMill assigns a valuation rating of 1 / 10 to NISOURCE INC (NI). This can be considered as Overvalued.
What is the profitability of NI stock?
NISOURCE INC (NI) has a profitability rating of 7 / 10.
What is the valuation of NISOURCE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NISOURCE INC (NI) is 21.94 and the Price/Book (PB) ratio is 2.16.
How financially healthy is NISOURCE INC?
The financial health rating of NISOURCE INC (NI) is 1 / 10.