NISOURCE INC (NI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NI - US65473P1057 - Common Stock
41.41 USD
-0.28 (-0.67%)
41.41 USD
0 (0%)
Overall NI gets a fundamental rating of 4 out of 10. We evaluated NI against 26 industry peers in the Multi-Utilities industry. NI scores excellent on profitability, but 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.
NI had a positive operating cash flow in the past year.
NI had positive earnings in 4 of the past 5 years.
In the past 5 years NI always reported a positive cash flow from operatings.
1.2 Ratios
NI has a Return On Assets of 2.60%. This is in the lower half of the industry: NI underperforms 61.54% of its industry peers.
The Return On Equity of NI (9.80%) is comparable to the rest of the industry.
NI's Return On Invested Capital of 4.53% is amongst the best of the industry. NI outperforms 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NI is in line with the industry average of 3.94%.
The 3 year average ROIC (4.05%) for NI is below the current ROIC(4.53%), indicating increased profibility in the last year.
| 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
NI has a better Profit Margin (14.12%) 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.
The Gross Margin of NI (76.62%) is better than 84.62% of its industry peers.
In the last couple of years the Gross Margin of NI has grown nicely.
| 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
The number of shares outstanding for NI has been increased compared to 5 years ago.
NI has a better debt/assets ratio than last year.
2.2 Solvency
NI has an Altman-Z score of 0.74. 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 (0.74) which is in line with its industry peers.
NI has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.73, NI is in line with its industry, outperforming 46.15% of the companies in the same industry.
| 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.
With a Current ratio value of 0.52, NI is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
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
The Earnings Per Share has been growing slightly by 5.03% over the past year.
The Earnings Per Share has been growing slightly by 5.80% on average over the past years.
NI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.62%.
The Revenue has been growing slightly by 0.93% on average over the past years.
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
NI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.73% yearly.
The Revenue is expected to grow by 5.73% on average over the next years.
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
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
NI is valuated rather expensively with a Price/Earnings ratio of 22.03.
Compared to the rest of the industry, the Price/Earnings ratio of NI indicates a rather expensive valuation: NI more expensive than 88.46% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. NI is around the same levels.
The Price/Forward Earnings ratio is 19.70, which indicates a rather expensive current valuation of NI.
88.46% of the companies in the same industry are cheaper than NI, based on the Price/Forward Earnings ratio.
NI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 19.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.94 |
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)2.03
PEG (5Y)3.8
EPS Next 2Y9.61%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
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 2.27, 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 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)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%
41.41
-0.28 (-0.67%)
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 Cap19.76B
Revenue(TTM)6.33B
Net Income(TTM)893.50M
Analysts84.35
Price Target47.95 (15.79%)
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 | 22.03 | ||
| Fwd PE | 19.7 | ||
| P/S | 3.12 | ||
| P/FCF | N/A | ||
| P/OCF | 9.03 | ||
| P/B | 2.17 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 11.94 |
EPS(TTM)1.88
EY4.54%
EPS(NY)2.1
Fwd EY5.08%
FCF(TTM)-1.42
FCFYN/A
OCF(TTM)4.59
OCFY11.08%
SpS13.26
BVpS19.11
TBVpS15.99
PEG (NY)2.03
PEG (5Y)3.8
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 22.03 and the Price/Book (PB) ratio is 2.17.
How financially healthy is NISOURCE INC?
The financial health rating of NISOURCE INC (NI) is 1 / 10.