NISOURCE INC (NI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NI - US65473P1057 - Common Stock
41.32 USD
-0.68 (-1.62%)
41.32 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 belongs to the best of the industry regarding profitability, there are 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.
NI had a positive operating cash flow in the past year.
NI had positive earnings in 4 of the past 5 years.
NI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.60%, NI is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
The Return On Equity of NI (9.80%) is comparable to the rest of the industry.
The Return On Invested Capital of NI (4.53%) is better than 92.31% 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 3.94%.
The last Return On Invested Capital (4.53%) for NI is above the 3 year average (4.05%), which is a sign of increasing profitability.
| 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
The Profit Margin of NI (14.12%) is better than 69.23% of its industry peers.
In the last couple of years the Profit Margin of NI has grown nicely.
With an excellent Operating Margin value of 27.54%, NI belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of NI has remained more or less at the same level.
NI has a better Gross Margin (76.62%) than 84.62% of its industry peers.
NI's Gross Margin has improved in the last couple of years.
| 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
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
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 has a Altman-Z score (0.74) which is in line with its industry peers.
A Debt/Equity ratio of 1.73 is on the high side and indicates that NI has dependencies on debt 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
A Current Ratio of 0.52 indicates that NI may have some problems paying 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.
NI's Quick ratio of 0.39 is on the low side compared to the rest of the industry. NI is outperformed by 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
NI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.03%.
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 19.62% 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)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.
Based on estimates for the next years, NI will show a small growth in Revenue. The Revenue will grow by 5.73% on average per year.
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
Based on the Price/Earnings ratio of 21.98, the valuation of NI can be described as rather expensive.
Based on the Price/Earnings ratio, NI is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 26.34. NI is around the same levels.
The Price/Forward Earnings ratio is 19.65, which indicates a rather expensive current valuation of NI.
NI's Price/Forward Earnings ratio is rather expensive when compared to the industry. NI is more expensive than 84.62% of the companies in the same industry.
NI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 19.65 |
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 | 11.88 |
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)3.79
EPS Next 2Y9.61%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.67%.
With a Dividend Yield of 2.67, NI pays less dividend than the industry average, which is at 3.54. 92.31% of the companies listed in the same industry pay a better dividend than NI!
Compared to an average S&P500 Dividend Yield of 2.31, NI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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
NI pays out 58.24% of its income as dividend. 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.
DP58.24%
EPS Next 2Y9.61%
EPS Next 3Y9.19%
41.32
-0.68 (-1.62%)
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 Cap19.72B
Revenue(TTM)6.33B
Net Income(TTM)893.50M
Analysts84.35
Price Target47.95 (16.05%)
Short Float %2.41%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)4.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.05%
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)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 19.65 | ||
| P/S | 3.12 | ||
| P/FCF | N/A | ||
| P/OCF | 9.01 | ||
| P/B | 2.16 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 11.88 |
EPS(TTM)1.88
EY4.55%
EPS(NY)2.1
Fwd EY5.09%
FCF(TTM)-1.42
FCFYN/A
OCF(TTM)4.59
OCFY11.1%
SpS13.26
BVpS19.11
TBVpS15.99
PEG (NY)2.03
PEG (5Y)3.79
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 21.98 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.