NISOURCE INC (NI) Stock Fundamental Analysis
NYSE:NI - New York Stock Exchange, Inc. - US65473P1057 - Common Stock - Currency: USD
Overall NI gets a fundamental rating of 4 out of 10. We evaluated NI against 25 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
NI's Return On Assets of 2.62% is on the low side compared to the rest of the industry. NI is outperformed by 68.00% of its industry peers.
The Return On Equity of NI (9.76%) is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 4.63%, NI belongs to the best of the industry, outperforming 96.00% 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 3.93%.
The 3 year average ROIC (4.05%) for NI is below the current ROIC(4.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 9.76% | ||
| ROIC | 4.63% |
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 14.63%. This is in the better half of the industry: NI outperforms 72.00% of its industry peers.
In the last couple of years the Profit Margin of NI has grown nicely.
Looking at the Operating Margin, with a value of 27.66%, NI belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
NI's Operating Margin has been stable in the last couple of years.
The Gross Margin of NI (77.16%) is better than 84.00% of its industry peers.
In the last couple of years the Gross Margin of NI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.66% | ||
| PM (TTM) | 14.63% | ||
| GM | 77.16% |
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
NI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for NI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that NI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.71, NI perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
A Debt/Equity ratio of 1.53 is on the high side and indicates that NI has dependencies on debt financing.
NI's Debt to Equity ratio of 1.53 is in line compared to the rest of the industry. NI outperforms 52.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.73
WACC6.37%
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 has a worse Current ratio (0.52) than 92.00% of its industry peers.
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 has a worse Quick ratio (0.45) than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.90% 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.
Looking at the last year, NI shows a quite strong growth in Revenue. The Revenue has grown by 13.08% in the last year.
Measured over the past years, NI shows a small growth in Revenue. The Revenue has been growing by 0.93% on average per year.
EPS 1Y (TTM)11.9%
EPS 3Y7.72%
EPS 5Y5.8%
EPS Q2Q%15.29%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%27.95%
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 8.40% on average per year.
NI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.22% yearly.
EPS Next Y10.38%
EPS Next 2Y8.78%
EPS Next 3Y8.57%
EPS Next 5Y8.4%
Revenue Next Year0.31%
Revenue Next 2Y2.78%
Revenue Next 3Y3.68%
Revenue Next 5Y5.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 21.05, which indicates a rather expensive current valuation of NI.
Compared to the rest of the industry, the Price/Earnings ratio of NI indicates a rather expensive valuation: NI more expensive than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, NI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 19.11, the valuation of NI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NI is valued more expensive than 88.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, NI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 19.11 |
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 | 12.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)3.63
EPS Next 2Y8.78%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.74, NI's dividend is way lower than its industry peers. On top of this 92.00% of the companies listed in the same industry pay a better dividend than NI!
Compared to an average S&P500 Dividend Yield of 2.35, NI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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
56.96% 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.
DP56.96%
EPS Next 2Y8.78%
EPS Next 3Y8.57%
39.57
-0.03 (-0.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.22%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change5.83%
Market Cap18.63B
Analysts84.17
Price Target44.82 (13.27%)
Short Float %2.58%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend1.07
Dividend Growth(5Y)2.55%
DP56.96%
Div Incr Years13
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.45%
Min EPS beat(2)-1.04%
Max EPS beat(2)5.94%
EPS beat(4)3
Avg EPS beat(4)12.6%
Min EPS beat(4)-1.04%
Max EPS beat(4)22.96%
EPS beat(8)6
Avg EPS beat(8)7.93%
EPS beat(12)7
Avg EPS beat(12)3.73%
EPS beat(16)9
Avg EPS beat(16)3.47%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-7.74%
Max Revenue beat(2)8.78%
Revenue beat(4)1
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-9.33%
Max Revenue beat(4)8.78%
Revenue beat(8)1
Avg Revenue beat(8)-9.33%
Revenue beat(12)5
Avg Revenue beat(12)-3.5%
Revenue beat(16)6
Avg Revenue beat(16)-3.22%
PT rev (1m)1.26%
PT rev (3m)4.8%
EPS NQ rev (1m)2.4%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.35%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)-2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 19.11 | ||
| P/S | 3.14 | ||
| P/FCF | N/A | ||
| P/OCF | 9.26 | ||
| P/B | 2.09 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 12.03 |
EPS(TTM)1.88
EY4.75%
EPS(NY)2.07
Fwd EY5.23%
FCF(TTM)-1.74
FCFYN/A
OCF(TTM)4.27
OCFY10.8%
SpS12.6
BVpS18.9
TBVpS15.74
PEG (NY)2.03
PEG (5Y)3.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 9.76% | ||
| ROCE | 5.68% | ||
| ROIC | 4.63% | ||
| ROICexc | 4.67% | ||
| ROICexgc | 4.92% | ||
| OM | 27.66% | ||
| PM (TTM) | 14.63% | ||
| GM | 77.16% | ||
| 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%
ROICexcg growth 3Y3.4%
ROICexcg 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 | 1.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.04 | ||
| Cap/Depr | 266.93% | ||
| Cap/Sales | 47.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 0.71 |
F-Score6
WACC6.37%
ROIC/WACC0.73
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)11.9%
EPS 3Y7.72%
EPS 5Y5.8%
EPS Q2Q%15.29%
EPS Next Y10.38%
EPS Next 2Y8.78%
EPS Next 3Y8.57%
EPS Next 5Y8.4%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%27.95%
Revenue Next Year0.31%
Revenue Next 2Y2.78%
Revenue Next 3Y3.68%
Revenue Next 5Y5.22%
EBIT growth 1Y21.47%
EBIT growth 3Y13.01%
EBIT growth 5Y2.33%
EBIT Next Year85.13%
EBIT Next 3Y30.96%
EBIT Next 5Y22.38%
FCF growth 1Y13.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.96%
OCF growth 3Y13.52%
OCF growth 5Y2.39%