NISOURCE INC (NI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NI - US65473P1057 - Common Stock
43.41 USD
-0.11 (-0.25%)
43.4 USD
-0.01 (-0.02%)
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. NI has an excellent profitability rating, but 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
- The Return On Assets of NI (2.60%) is worse than 61.54% of its industry peers.
- The Return On Equity of NI (9.80%) is comparable to the rest of the industry.
- 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 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
- With a decent Profit Margin value of 14.12%, NI is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- NI's Profit Margin has improved in the last couple of years.
- NI has a better Operating Margin (27.54%) than 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's Gross Margin of 76.62% is amongst the best of the industry. NI outperforms 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
- Based on the Altman-Z score of 0.76, we must say that NI is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.76, NI perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
- NI has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.73, NI perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.71
WACC6.42%
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.
- NI's Current ratio of 0.52 is on the low side compared to the rest of the industry. NI is outperformed by 88.46% of its industry peers.
- A Quick Ratio of 0.39 indicates that NI may have some problems paying its short term obligations.
- NI has a Quick ratio of 0.39. This is amonst the worse of the industry: NI underperforms 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.
- 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.
- 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
- Based on estimates for the next years, NI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.54% on average per year.
- The Revenue is expected to grow by 5.85% on average over the next years.
EPS Next Y10.9%
EPS Next 2Y9.76%
EPS Next 3Y9.25%
EPS Next 5Y9.54%
Revenue Next Year4.08%
Revenue Next 2Y4.16%
Revenue Next 3Y4.26%
Revenue Next 5Y5.85%
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 23.09.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, NI is valued at the same level.
- A Price/Forward Earnings ratio of 20.59 indicates a rather expensive valuation of NI.
- 88.46% of the companies in the same industry are cheaper than NI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, NI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.09 | ||
| Fwd PE | 20.59 |
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 | 12.24 |
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)2.12
PEG (5Y)3.98
EPS Next 2Y9.76%
EPS Next 3Y9.25%
5. Dividend
5.1 Amount
- NI has a Yearly Dividend Yield of 2.57%.
- With a Dividend Yield of 2.57, NI pays less dividend than the industry average, which is at 4.14. 92.31% of the companies listed in the same industry pay a better dividend than NI!
- NI's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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 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
- 58.24% of the earnings are spent on dividend by NI. 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 2Y9.76%
EPS Next 3Y9.25%
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.
What is the valuation status for NI stock?
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.
Can you provide the PE and PB ratios for NI stock?
The Price/Earnings (PE) ratio for NISOURCE INC (NI) is 23.09 and the Price/Book (PB) ratio is 2.27.
Can you provide the expected EPS growth for NI stock?
The Earnings per Share (EPS) of NISOURCE INC (NI) is expected to grow by 10.9% in the next year.