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%)
Taking everything into account, NI scores 4 out of 10 in our fundamental rating. 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.
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
The Return On Assets of NI (2.60%) is worse than 61.54% of its industry peers.
NI's Return On Equity of 9.80% is in line compared to the rest of the industry. NI outperforms 53.85% of its industry peers.
NI has a better Return On Invested Capital (4.53%) than 92.31% of its industry peers.
NI had an Average Return On Invested Capital over the past 3 years of 4.05%. This 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 Profit Margin of 14.12%. This is in the better half of the industry: NI outperforms 69.23% of its industry peers.
NI's Profit Margin has improved in the last couple of years.
NI has a Operating Margin of 27.54%. This is amongst the best in the industry. NI outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of NI has remained more or less at the same level.
NI has a Gross Margin of 76.62%. This is amongst the best in the industry. NI outperforms 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.
The number of shares outstanding for NI has been increased compared to 1 year ago.
NI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NI has been reduced compared to a year ago.
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.
The Altman-Z score of NI (0.74) is comparable to the rest of the industry.
NI has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
NI has a Debt to Equity ratio of 1.73. This is comparable to the rest of the industry: NI outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.72
WACC6.32%
2.3 Liquidity
NI has a Current 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.
The Current ratio of NI (0.52) is worse than 88.46% of its industry peers.
A Quick Ratio of 0.39 indicates that NI may have some problems paying its short term obligations.
The Quick ratio of NI (0.39) is worse than 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.
The Revenue has grown by 19.62% in the past year. This is quite good.
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
Based on estimates for the next years, NI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.73% on average per year.
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.
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
NI is valuated rather expensively with a Price/Earnings ratio of 22.03.
Based on the Price/Earnings ratio, NI is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
NI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
NI is valuated rather expensively with a Price/Forward Earnings ratio of 19.70.
Based on the Price/Forward Earnings ratio, NI is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
NI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 19.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NI.
| 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
With a Yearly Dividend Yield of 2.67%, NI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.54, NI's dividend is way lower than its industry peers. On top of this 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 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%
41.41
-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
WACC6.32%
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.