NISOURCE INC (NI) Stock Fundamental Analysis
USA - NYSE:NI - US65473P1057 - Common Stock
40.16 USD
+0.55 (+1.39%)
40.16 USD
0 (0%)
Taking everything into account, NI scores 4 out of 10 in our fundamental rating. NI was compared to 25 industry peers in the Multi-Utilities industry. While NI belongs to the best of the industry regarding profitability, there are concerns on its financial health. NI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NI had positive earnings in the past year.
NI had a positive operating cash flow in the past year.
NI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NI had a positive operating cash flow.
1.2 Ratios
NI has a worse Return On Assets (2.60%) than 68.00% of its industry peers.
NI's Return On Equity of 9.96% is in line compared to the rest of the industry. NI outperforms 56.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.54%, NI belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NI is in line with the industry average of 3.82%.
The 3 year average ROIC (4.05%) for NI is below the current ROIC(4.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 9.96% | ||
| ROIC | 4.54% |
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
The Profit Margin of NI (14.43%) is better than 68.00% of its industry peers.
NI's Profit Margin has improved in the last couple of years.
NI has a better Operating Margin (27.13%) than 96.00% of its industry peers.
In the last couple of years the Operating Margin of NI has remained more or less at the same level.
The Gross Margin of NI (76.32%) is better than 84.00% of its industry peers.
NI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.13% | ||
| PM (TTM) | 14.43% | ||
| GM | 76.32% |
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.
NI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NI has more shares outstanding
The debt/assets ratio for NI has been reduced compared to a year ago.
2.2 Solvency
NI has an Altman-Z score of 0.72. This is a bad value and indicates that NI is not financially healthy and even has some risk of bankruptcy.
NI's Altman-Z score of 0.72 is in line compared to the rest of the industry. NI outperforms 44.00% of its industry peers.
NI has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.63, NI perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.73
WACC6.18%
2.3 Liquidity
A Current Ratio of 0.59 indicates that NI may have some problems paying its short term obligations.
With a Current ratio value of 0.59, NI is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.48 indicates that NI may have some problems paying its short term obligations.
NI has a Quick ratio of 0.48. This is amonst the worse of the industry: NI underperforms 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
NI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.18%.
Measured over the past 5 years, NI shows a small growth in Earnings Per Share. The EPS has been growing by 5.80% on average per year.
Looking at the last year, NI shows a quite strong growth in Revenue. The Revenue has grown by 16.98% in the last year.
Measured over the past years, NI shows a small growth in Revenue. The Revenue has been growing by 0.93% on average per year.
EPS 1Y (TTM)6.18%
EPS 3Y7.72%
EPS 5Y5.8%
EPS Q2Q%4.76%
Revenue 1Y (TTM)16.98%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%18.28%
3.2 Future
The Earnings Per Share is expected to grow by 8.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.32% on average over the next years.
EPS Next Y10.5%
EPS Next 2Y9.16%
EPS Next 3Y8.68%
EPS Next 5Y8.69%
Revenue Next Year3.53%
Revenue Next 2Y3.92%
Revenue Next 3Y4.34%
Revenue Next 5Y5.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NI is valuated rather expensively with a Price/Earnings ratio of 21.25.
NI's Price/Earnings ratio is rather expensive when compared to the industry. NI is more expensive than 84.00% of the companies in the same industry.
NI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.26, the valuation of NI can be described as rather expensive.
80.00% of the companies in the same industry are cheaper than NI, based on the Price/Forward Earnings ratio.
NI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.25 | ||
| Fwd PE | 19.26 |
4.2 Price Multiples
NI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NI is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NI may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)3.66
EPS Next 2Y9.16%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.72, NI pays less dividend than the industry average, which is at 3.64. 92.00% of the companies listed in the same industry pay a better dividend than NI!
Compared to an average S&P500 Dividend Yield of 2.38, NI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
The dividend of NI has a limited annual growth rate of 2.55%.
NI has paid a dividend for at least 10 years, which is a reliable track record.
NI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.55%
Div Incr Years13
Div Non Decr Years20
5.3 Sustainability
57.33% of the earnings are spent on dividend by NI. This is a bit on the high side, but may be sustainable.
NI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.33%
EPS Next 2Y9.16%
EPS Next 3Y8.68%
40.16
+0.55 (+1.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.59%
Inst Owner Change6.18%
Ins Owners0.25%
Ins Owner Change-0.73%
Market Cap18.91B
Analysts84.35
Price Target45.74 (13.89%)
Short Float %2.33%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend1.07
Dividend Growth(5Y)2.55%
DP57.33%
Div Incr Years13
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.5%
Min EPS beat(2)3.06%
Max EPS beat(2)5.94%
EPS beat(4)3
Avg EPS beat(4)7.73%
Min EPS beat(4)-1.04%
Max EPS beat(4)22.96%
EPS beat(8)6
Avg EPS beat(8)8.17%
EPS beat(12)8
Avg EPS beat(12)4.39%
EPS beat(16)10
Avg EPS beat(16)3.77%
Revenue beat(2)2
Avg Revenue beat(2)5.22%
Min Revenue beat(2)1.66%
Max Revenue beat(2)8.78%
Revenue beat(4)2
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-9.33%
Max Revenue beat(4)8.78%
Revenue beat(8)2
Avg Revenue beat(8)-8.46%
Revenue beat(12)5
Avg Revenue beat(12)-4.01%
Revenue beat(16)7
Avg Revenue beat(16)-2.7%
PT rev (1m)0.66%
PT rev (3m)3.35%
EPS NQ rev (1m)4.77%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-4.35%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)1.96%
Revenue NY rev (3m)3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.25 | ||
| Fwd PE | 19.26 | ||
| P/S | 3.08 | ||
| P/FCF | N/A | ||
| P/OCF | 9.17 | ||
| P/B | 2.13 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 12.46 |
EPS(TTM)1.89
EY4.71%
EPS(NY)2.09
Fwd EY5.19%
FCF(TTM)-1.69
FCFYN/A
OCF(TTM)4.38
OCFY10.9%
SpS13.02
BVpS18.86
TBVpS15.71
PEG (NY)2.02
PEG (5Y)3.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 9.96% | ||
| ROCE | 5.43% | ||
| ROIC | 4.54% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 4.83% | ||
| OM | 27.13% | ||
| PM (TTM) | 14.43% | ||
| GM | 76.32% | ||
| 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%
ROICexcg growth 3Y3.4%
ROICexcg 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 | 1.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.25 | ||
| Cap/Depr | 261.42% | ||
| Cap/Sales | 46.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 0.72 |
F-Score6
WACC6.18%
ROIC/WACC0.73
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)6.18%
EPS 3Y7.72%
EPS 5Y5.8%
EPS Q2Q%4.76%
EPS Next Y10.5%
EPS Next 2Y9.16%
EPS Next 3Y8.68%
EPS Next 5Y8.69%
Revenue 1Y (TTM)16.98%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%18.28%
Revenue Next Year3.53%
Revenue Next 2Y3.92%
Revenue Next 3Y4.34%
Revenue Next 5Y5.32%
EBIT growth 1Y16.84%
EBIT growth 3Y13.01%
EBIT growth 5Y2.33%
EBIT Next Year85.26%
EBIT Next 3Y30.89%
EBIT Next 5Y22.23%
FCF growth 1Y12.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.76%
OCF growth 3Y13.52%
OCF growth 5Y2.39%