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NISOURCE INC (NI) Stock Fundamental Analysis

NYSE:NI - New York Stock Exchange, Inc. - US65473P1057 - Common Stock - Currency: USD

37.39  -0.19 (-0.51%)

After market: 37.39 0 (0%)

Fundamental Rating

4

NI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 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.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

NI had positive earnings in the past year.
In the past year NI had a positive cash flow from operations.
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.
NI Yearly Net Income VS EBIT VS OCF VS FCFNI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B

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.
The Return On Invested Capital of NI (4.23%) is better than 84.00% of its industry peers.
NI had an Average Return On Invested Capital over the past 3 years of 3.86%. This is in line with the industry average of 3.68%.
The last Return On Invested Capital (4.23%) for NI is above the 3 year average (3.86%), which is a sign of increasing profitability.
Industry RankSector 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%
NI Yearly ROA, ROE, ROICNI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2 4 6 8

1.3 Margins

Looking at the Profit Margin, with a value of 13.99%, NI is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
NI has a Operating Margin of 26.63%. This is amongst the best in the industry. NI outperforms 92.00% of its industry peers.
In the last couple of years the Operating Margin of NI has grown nicely.
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 RankSector 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%
NI Yearly Profit, Operating, Gross MarginsNI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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0

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NI is destroying value.
Compared to 1 year ago, NI has more shares outstanding
Compared to 5 years ago, NI has more shares outstanding
Compared to 1 year ago, NI has a worse debt to assets ratio.
NI Yearly Shares OutstandingNI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
NI Yearly Total Debt VS Total AssetsNI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

Based on the Altman-Z score of 0.68, we must say that NI is in the distress zone and has some risk of bankruptcy.
NI has a Altman-Z score of 0.68. This is in the lower half of the industry: NI underperforms 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.
Looking at the Debt to Equity ratio, with a value of 1.48, NI is in line with its industry, outperforming 60.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.48
Debt/FCF N/A
Altman-Z 0.68
ROIC/WACC0.65
WACC6.5%
NI Yearly LT Debt VS Equity VS FCFNI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B 10B

2.3 Liquidity

NI has a Current 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.
The Current ratio of NI (0.46) is worse than 92.00% of its industry peers.
A Quick Ratio of 0.35 indicates that NI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.35, NI is doing worse than 92.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.46
Quick Ratio 0.35
NI Yearly Current Assets VS Current LiabilitesNI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.01% over the past year.
NI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.92% yearly.
The Revenue has decreased by -8.62% in the past year.
The Revenue has been growing slightly by 1.48% on average over the past years.
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

Based on estimates for the next years, NI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.56% on average per year.
NI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.27% yearly.
EPS Next Y11.64%
EPS Next 2Y9.66%
EPS Next 3Y9.06%
EPS Next 5Y8.56%
Revenue Next Year0.91%
Revenue Next 2Y2.55%
Revenue Next 3Y3.45%
Revenue Next 5Y5.27%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
NI Yearly Revenue VS EstimatesNI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
NI Yearly EPS VS EstimatesNI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5 2 2.5

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 20.89 indicates a rather expensive valuation of NI.
Based on the Price/Earnings ratio, NI is valued a bit more expensive than the industry average as 68.00% of the companies are valued more cheaply.
NI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.47.
The Price/Forward Earnings ratio is 19.43, which indicates a rather expensive current valuation of NI.
NI's Price/Forward Earnings ratio is rather expensive when compared to the industry. NI is more expensive than 84.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NI to the average of the S&P500 Index (92.74), we can say NI is valued rather cheaply.
Industry RankSector Rank
PE 20.89
Fwd PE 19.43
NI Price Earnings VS Forward Price EarningsNI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NI is valued a bit more expensive than 72.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.66
NI Per share dataNI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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)1.79
PEG (5Y)5.33
EPS Next 2Y9.66%
EPS Next 3Y9.06%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.97%, NI has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.97, NI pays less dividend than the industry average, which is at 3.89. 84.00% of the companies listed in the same industry pay a better dividend than NI!
Compared to an average S&P500 Dividend Yield of 2.28, NI pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.97%

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
NI Yearly Dividends per shareNI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

NI pays out 64.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.4%
EPS Next 2Y9.66%
EPS Next 3Y9.06%
NI Yearly Income VS Free CF VS DividendNI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B
NI Dividend Payout.NI Dividend Payout, showing the Payout Ratio.NI Dividend Payout.PayoutRetained Earnings

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NISOURCE INC

NYSE:NI (2/4/2025, 8:04:00 PM)

After market: 37.39 0 (0%)

37.39

-0.19 (-0.51%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-12 2025-02-12/amc
Inst Owners99.32%
Inst Owner Change0.06%
Ins Owners0.12%
Ins Owner Change2.32%
Market Cap17.45B
Analysts85
Price Target40.19 (7.49%)
Short Float %1.97%
Short Ratio2.55
Dividend
Industry RankSector Rank
Dividend Yield 2.97%
Yearly Dividend1.06
Dividend Growth(5Y)5.78%
DP64.4%
Div Incr Years13
Div Non Decr Years20
Ex-Date02-03 2025-02-03 (0.28)
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)3.7%
PT rev (3m)10.48%
EPS NQ rev (1m)-2.64%
EPS NQ rev (3m)-14.27%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)3.12%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.54%
Valuation
Industry RankSector Rank
PE 20.89
Fwd PE 19.43
P/S 3.3
P/FCF N/A
P/OCF 10.64
P/B 2.09
P/tB 2.54
EV/EBITDA 12.66
EPS(TTM)1.79
EY4.79%
EPS(NY)1.92
Fwd EY5.15%
FCF(TTM)-2.41
FCFYN/A
OCF(TTM)3.52
OCFY9.4%
SpS11.33
BVpS17.88
TBVpS14.69
PEG (NY)1.79
PEG (5Y)5.33
Profitability
Industry RankSector 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 RankSector 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 0.68
F-Score7
WACC6.5%
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 Y11.64%
EPS Next 2Y9.66%
EPS Next 3Y9.06%
EPS Next 5Y8.56%
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y5.55%
Revenue growth 5Y1.48%
Sales Q2Q%4.76%
Revenue Next Year0.91%
Revenue Next 2Y2.55%
Revenue Next 3Y3.45%
Revenue Next 5Y5.27%
EBIT growth 1Y8.44%
EBIT growth 3Y10.54%
EBIT growth 5Y59.47%
EBIT Next Year85.37%
EBIT Next 3Y32.05%
EBIT Next 5Y23.45%
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%