NISOURCE INC (NI)
US65473P1057 - Common Stock
NI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. While NI has a great profitability rating, there are quite some concerns on its financial health. NI is quite expensive at the moment. 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 (2.40%) than 72.00% of its industry peers.
NI has a worse Return On Equity (8.87%) than 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.23%, NI belongs to the top 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 3.68%.
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
NI's Profit Margin of 13.99% is fine compared to the rest of the industry. NI outperforms 72.00% of its industry peers.
NI has a Operating Margin of 26.63%. This is amongst the best in the industry. NI outperforms 92.00% of its industry peers.
NI's Operating Margin has improved in the last couple of years.
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.
In the last couple of years the Gross Margin of NI has grown nicely.
| 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.
NI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NI has been increased compared to 5 years ago.
The debt/assets ratio for NI is higher compared to a year ago.
2.2 Solvency
NI has an Altman-Z score of 0.66. This is a bad value and indicates that NI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NI (0.66) is worse than 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.
NI's Debt to Equity ratio of 1.48 is in line compared to the rest of the industry. NI outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.65
WACC6.47%
2.3 Liquidity
A Current Ratio of 0.46 indicates that NI may have some problems paying its short term obligations.
With a Current ratio value of 0.46, NI is not doing good in the industry: 92.00% of the companies in the same industry are doing better.
NI has a Quick 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 Quick ratio (0.35) than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
NI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.01%, which is quite good.
Measured over the past 5 years, NI shows a small growth in Earnings Per Share. The EPS has been growing by 3.92% on average per year.
NI shows a decrease in Revenue. In the last year, the revenue decreased by -8.62%.
Measured over the past years, NI shows a small growth in Revenue. The Revenue has been growing by 1.48% on average per year.
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 8.45% 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 4.22% on average per year.
EPS Next Y11.53%
EPS Next 2Y9.38%
EPS Next 3Y8.83%
EPS Next 5Y8.45%
Revenue Next Year1.32%
Revenue Next 2Y2.63%
Revenue Next 3Y3.53%
Revenue Next 5Y4.22%
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.
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
Based on the Price/Earnings ratio of 20.21, the valuation of NI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NI indicates a slightly more expensive valuation: NI is more expensive than 68.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, NI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.90, the valuation of NI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NI is valued expensively inside the industry as 84.00% of the companies are valued cheaper.
NI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.21 | ||
| Fwd PE | 18.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NI is valued a bit more expensive than the industry average as 72.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)5.15
EPS Next 2Y9.38%
EPS Next 3Y8.83%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.96, NI pays less dividend than the industry average, which is at 3.92. 80.00% of the companies listed in the same industry pay a better dividend than NI!
Compared to an average S&P500 Dividend Yield of 2.34, NI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.78%
Div Incr Years13
Div Non Decr Years20
5.3 Sustainability
NI pays out 64.40% of its income as dividend. This is not a sustainable payout ratio.
NI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.4%
EPS Next 2Y9.38%
EPS Next 3Y8.83%
NISOURCE INC
NYSE:NI (12/20/2024, 8:26:59 PM)
After market: 36.17 0 (0%)36.17
+0.3 (+0.84%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners99.32%
Inst Owner Change2.19%
Ins Owners0.12%
Ins Owner Change-0.67%
Market Cap16.88B
Analysts85
Price Target38.76 (7.16%)
Short Float %1.75%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Dividend Growth(5Y)5.78%
DP64.4%
Div Incr Years13
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.76%
Min EPS beat(2)22.56%
Max EPS beat(2)22.96%
EPS beat(4)3
Avg EPS beat(4)10.14%
Min EPS beat(4)-5.31%
Max EPS beat(4)22.96%
EPS beat(8)6
Avg EPS beat(8)7.37%
EPS beat(12)7
Avg EPS beat(12)3.3%
EPS beat(16)9
Avg EPS beat(16)2.98%
Revenue beat(2)0
Avg Revenue beat(2)-5.09%
Min Revenue beat(2)-9.33%
Max Revenue beat(2)-0.85%
Revenue beat(4)0
Avg Revenue beat(4)-15.59%
Min Revenue beat(4)-33.66%
Max Revenue beat(4)-0.85%
Revenue beat(8)2
Avg Revenue beat(8)-6.75%
Revenue beat(12)5
Avg Revenue beat(12)-3.66%
Revenue beat(16)5
Avg Revenue beat(16)-5.79%
PT rev (1m)6.54%
PT rev (3m)13.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.95%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.21 | ||
| Fwd PE | 18.9 | ||
| P/S | 3.19 | ||
| P/FCF | N/A | ||
| P/OCF | 10.29 | ||
| P/B | 2.02 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)1.79
EY4.95%
EPS(NY)1.91
Fwd EY5.29%
FCF(TTM)-2.41
FCFYN/A
OCF(TTM)3.52
OCFY9.72%
SpS11.33
BVpS17.88
TBVpS14.69
PEG (NY)1.75
PEG (5Y)5.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 8.87% | ||
| ROCE | 5.15% | ||
| ROIC | 4.23% | ||
| ROICexc | 4.25% | ||
| ROICexgc | 4.49% | ||
| OM | 26.63% | ||
| PM (TTM) | 13.99% | ||
| GM | 79.38% | ||
| FCFM | N/A |
ROA(3y)2.37%
ROA(5y)1.65%
ROE(3y)8.5%
ROE(5y)5.94%
ROIC(3y)3.86%
ROIC(5y)4.15%
ROICexc(3y)3.97%
ROICexc(5y)4.23%
ROICexgc(3y)4.24%
ROICexgc(5y)4.53%
ROCE(3y)5.01%
ROCE(5y)5.36%
ROICexcg growth 3Y0.1%
ROICexcg growth 5Y48.71%
ROICexc growth 3Y0.74%
ROICexc growth 5Y50.05%
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%
F-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 270.46% | ||
| Cap/Sales | 52.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 0.66 |
F-Score7
WACC6.47%
ROIC/WACC0.65
Cap/Depr(3y)285.9%
Cap/Depr(5y)277.19%
Cap/Sales(3y)43.74%
Cap/Sales(5y)41.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.01%
EPS 3Y6.62%
EPS 5Y3.92%
EPS Q2Q%5.26%
EPS Next Y11.53%
EPS Next 2Y9.38%
EPS Next 3Y8.83%
EPS Next 5Y8.45%
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y5.55%
Revenue growth 5Y1.48%
Sales Q2Q%4.76%
Revenue Next Year1.32%
Revenue Next 2Y2.63%
Revenue Next 3Y3.53%
Revenue Next 5Y4.22%
EBIT growth 1Y8.44%
EBIT growth 3Y10.54%
EBIT growth 5Y59.47%
EBIT Next Year85.3%
EBIT Next 3Y31.74%
EBIT Next 5Y22.61%
FCF growth 1Y-26.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.8%
OCF growth 3Y20.57%
OCF growth 5Y29.08%