NISOURCE INC (NI)
US65473P1057 - Common Stock
We assign a fundamental rating of 4 out of 10 to NI. 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. While showing a medium growth rate, NI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year NI was profitable.
NI had a positive operating cash flow in the past year.
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 (2.40%) than 72.00% of its industry peers.
NI has a Return On Equity of 8.87%. This is in the lower half of the industry: NI underperforms 60.00% of its industry peers.
With an excellent Return On Invested Capital value of 4.23%, NI belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NI is in line with the industry average of 3.69%.
The 3 year average ROIC (3.86%) for NI is below the current ROIC(4.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 8.87% | ||
| ROIC | 4.23% |
ROA(3y)2.37%
ROA(5y)1.65%
ROE(3y)8.5%
ROE(5y)5.94%
ROIC(3y)3.86%
ROIC(5y)4.15%
1.3 Margins
With a decent Profit Margin value of 13.99%, NI is doing good in the industry, outperforming 72.00% of the companies in the same industry.
The Operating Margin of NI (26.63%) is better than 92.00% of its industry peers.
In the last couple of years the Operating Margin of NI has grown nicely.
Looking at the Gross Margin, with a value of 79.38%, NI belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
NI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.63% | ||
| PM (TTM) | 13.99% | ||
| GM | 79.38% |
OM growth 3Y4.72%
OM growth 5Y57.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.85%
GM growth 5Y1.93%
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.
The number of shares outstanding for NI has been increased compared to 1 year ago.
Compared to 5 years ago, NI has more shares outstanding
Compared to 1 year ago, NI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that NI is in the distress zone and has some risk of bankruptcy.
NI has a Altman-Z score of 0.67. This is in the lower half of the industry: NI underperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.48 is on the high side and indicates that NI has dependencies on debt financing.
With a Debt to Equity ratio value of 1.48, NI perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.66
WACC6.44%
2.3 Liquidity
NI has a Current Ratio of 0.46. 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 worse Current ratio (0.46) than 92.00% of its industry peers.
A Quick Ratio of 0.35 indicates that NI may have some problems paying its short term obligations.
NI has a Quick ratio of 0.35. This is amonst the worse of the industry: NI underperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.01% over the past year.
NI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.92% yearly.
Looking at the last year, NI shows a decrease in Revenue. The Revenue has decreased by -8.62% in the last year.
The Revenue has been growing slightly by 1.48% on average over the past years.
EPS 1Y (TTM)14.01%
EPS 3Y6.62%
EPS 5Y3.92%
EPS Q2Q%5.26%
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y5.55%
Revenue growth 5Y1.48%
Sales Q2Q%4.76%
3.2 Future
The Earnings Per Share is expected to grow by 8.17% 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 3.77% yearly.
EPS Next Y11.59%
EPS Next 2Y9.35%
EPS Next 3Y8.79%
EPS Next 5Y8.17%
Revenue Next Year1.32%
Revenue Next 2Y2.53%
Revenue Next 3Y3.41%
Revenue Next 5Y3.77%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 21.15, the valuation of NI can be described as rather expensive.
Based on the Price/Earnings ratio, NI is valued a bit more expensive than the industry average as 68.00% of the companies are valued more cheaply.
NI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 19.78, the valuation of NI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NI is valued more expensive than 84.00% 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 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.15 | ||
| Fwd PE | 19.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NI is valued a bit more expensive than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.6 |
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.
NI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)5.39
EPS Next 2Y9.35%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.94%.
Compared to an average industry Dividend Yield of 3.95, NI is paying slightly less dividend.
NI's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of NI has a limited annual growth rate of 5.78%.
NI has been paying a dividend for at least 10 years, so it has 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)5.78%
Div Incr Years12
Div Non Decr Years19
5.3 Sustainability
NI pays out 64.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.4%
EPS Next 2Y9.35%
EPS Next 3Y8.79%
NISOURCE INC
NYSE:NI (11/21/2024, 8:04:00 PM)
After market: 37.4808 -0.37 (-0.98%)37.85
+0.55 (+1.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.15 | ||
| Fwd PE | 19.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.83
PEG (5Y)5.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 8.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.63% | ||
| PM (TTM) | 13.99% | ||
| GM | 79.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.01%
EPS 3Y6.62%
EPS 5Y
EPS Q2Q%
EPS Next Y11.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y5.55%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y