NISOURCE INC (NI) Stock Fundamental Analysis
NYSE:NI - New York Stock Exchange, Inc. - US65473P1057 - Common Stock - Currency: USD
Overall NI gets a fundamental rating of 4 out of 10. We evaluated NI against 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
In the past year NI was profitable.
In the past year NI had a positive cash flow from operations.
Of the past 5 years NI 4 years were profitable.
Each year in the past 5 years NI had a positive operating cash flow.
1.2 Ratios
NI has a Return On Assets of 2.32%. This is in the lower half of the industry: NI underperforms 72.00% of its industry peers.
NI has a Return On Equity of 8.50%. This is in the lower half of the industry: NI underperforms 60.00% of its industry peers.
NI has a better Return On Invested Capital (4.33%) than 96.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NI is in line with the industry average of 3.76%.
The last Return On Invested Capital (4.33%) for NI is above the 3 year average (4.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 8.5% | ||
| ROIC | 4.33% |
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
With a decent Profit Margin value of 13.53%, NI is doing good in the industry, outperforming 72.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NI has grown nicely.
NI's Operating Margin of 26.85% is amongst the best of the industry. NI outperforms 96.00% of its industry peers.
NI's Operating Margin has been stable in the last couple of years.
NI has a Gross Margin of 79.25%. This is amongst the best in the industry. NI outperforms 88.00% of its industry peers.
NI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.85% | ||
| PM (TTM) | 13.53% | ||
| GM | 79.25% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NI is destroying value.
Compared to 1 year ago, NI has more shares outstanding
Compared to 5 years ago, NI has more shares outstanding
NI has a better debt/assets ratio than last year.
2.2 Solvency
NI has an Altman-Z score of 0.68. This is a bad value and indicates that NI is not financially healthy and even has some risk of bankruptcy.
NI has a Altman-Z score of 0.68. This is comparable to the rest of the industry: NI outperforms 44.00% of its industry peers.
A Debt/Equity ratio of 1.46 is on the high side and indicates that NI has dependencies on debt financing.
NI has a Debt to Equity ratio (1.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.68 |
ROIC/WACC0.69
WACC6.26%
2.3 Liquidity
NI has a Current Ratio of 0.51. 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 Current ratio of NI (0.51) is worse than 96.00% of its industry peers.
NI has a Quick Ratio of 0.51. This is a bad value and indicates that NI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.41, NI is doing worse than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.37% over the past year.
NI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.80% yearly.
Looking at the last year, NI shows a decrease in Revenue. The Revenue has decreased by -0.91% in the last year.
NI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.93% yearly.
EPS 1Y (TTM)9.37%
EPS 3Y7.72%
EPS 5Y5.8%
EPS Q2Q%-7.55%
Revenue 1Y (TTM)-0.91%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%11.66%
3.2 Future
NI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.40% yearly.
NI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.98% yearly.
EPS Next Y10.23%
EPS Next 2Y8.81%
EPS Next 3Y8.57%
EPS Next 5Y8.4%
Revenue Next Year2.71%
Revenue Next 2Y3.99%
Revenue Next 3Y4.24%
Revenue Next 5Y6.98%
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
A Price/Earnings ratio of 21.78 indicates a rather expensive valuation of NI.
NI's Price/Earnings ratio is a bit more expensive when compared to the industry. NI is more expensive than 76.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of NI to the average of the S&P500 Index (27.63), we can say NI is valued slightly cheaper.
A Price/Forward Earnings ratio of 19.76 indicates a rather expensive valuation of NI.
72.00% 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 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 19.76 |
4.2 Price Multiples
NI's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NI may justify a higher PE ratio.
PEG (NY)2.13
PEG (5Y)3.75
EPS Next 2Y8.81%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.70, NI's dividend is way lower than its industry peers. On top of this 92.00% of the companies listed in the same industry pay a better dividend than NI!
NI's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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 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
66.28% of the earnings are spent on dividend by NI. This is not a sustainable payout ratio.
NI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.28%
EPS Next 2Y8.81%
EPS Next 3Y8.57%
38.11
-1.18 (-3%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.24%
Inst Owner Change-0.24%
Ins Owners0.14%
Ins Owner Change6.24%
Market Cap17.93B
Analysts84.8
Price Target42.77 (12.23%)
Short Float %1.99%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend1.07
Dividend Growth(5Y)2.55%
DP66.28%
Div Incr Years13
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.96%
Min EPS beat(2)-1.04%
Max EPS beat(2)22.96%
EPS beat(4)3
Avg EPS beat(4)11.21%
Min EPS beat(4)-1.04%
Max EPS beat(4)22.96%
EPS beat(8)5
Avg EPS beat(8)7.12%
EPS beat(12)6
Avg EPS beat(12)2.73%
EPS beat(16)8
Avg EPS beat(16)2.9%
Revenue beat(2)0
Avg Revenue beat(2)-8.53%
Min Revenue beat(2)-9.33%
Max Revenue beat(2)-7.74%
Revenue beat(4)0
Avg Revenue beat(4)-12.89%
Min Revenue beat(4)-33.66%
Max Revenue beat(4)-0.85%
Revenue beat(8)1
Avg Revenue beat(8)-10.15%
Revenue beat(12)5
Avg Revenue beat(12)-3.54%
Revenue beat(16)5
Avg Revenue beat(16)-4.81%
PT rev (1m)1.35%
PT rev (3m)10.35%
EPS NQ rev (1m)1.19%
EPS NQ rev (3m)2.42%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)8.17%
Revenue NQ rev (3m)-29.18%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 19.76 | ||
| P/S | 3.29 | ||
| P/FCF | N/A | ||
| P/OCF | 10.07 | ||
| P/B | 2.07 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 12.42 |
EPS(TTM)1.75
EY4.59%
EPS(NY)1.93
Fwd EY5.06%
FCF(TTM)-2.12
FCFYN/A
OCF(TTM)3.79
OCFY9.93%
SpS11.59
BVpS18.45
TBVpS15.3
PEG (NY)2.13
PEG (5Y)3.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 8.5% | ||
| ROCE | 5.29% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.35% | ||
| ROICexgc | 4.59% | ||
| OM | 26.85% | ||
| PM (TTM) | 13.53% | ||
| GM | 79.25% | ||
| 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-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.06 | ||
| Cap/Depr | 266.56% | ||
| Cap/Sales | 50.98% | ||
| Interest Coverage | 3.13 | ||
| Cash Conversion | 71.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 0.68 |
F-Score5
WACC6.26%
ROIC/WACC0.69
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)9.37%
EPS 3Y7.72%
EPS 5Y5.8%
EPS Q2Q%-7.55%
EPS Next Y10.23%
EPS Next 2Y8.81%
EPS Next 3Y8.57%
EPS Next 5Y8.4%
Revenue 1Y (TTM)-0.91%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%11.66%
Revenue Next Year2.71%
Revenue Next 2Y3.99%
Revenue Next 3Y4.24%
Revenue Next 5Y6.98%
EBIT growth 1Y12.79%
EBIT growth 3Y13.01%
EBIT growth 5Y2.33%
EBIT Next Year81%
EBIT Next 3Y30.13%
EBIT Next 5Y23.7%
FCF growth 1Y-14.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.94%
OCF growth 3Y13.52%
OCF growth 5Y2.39%