NISOURCE INC (NI)
US65473P1057 - Common Stock
We assign a fundamental rating of 4 out of 10 to NI. NI was compared to 25 industry peers in the Multi-Utilities industry. NI has an excellent profitability rating, 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
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.
1.2 Ratios
NI has a worse Return On Assets (2.40%) than 72.00% of its industry peers.
With a Return On Equity value of 8.87%, NI is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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 3.64%.
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 Rank | Sector 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%
1.3 Margins
With a decent Profit Margin value of 13.99%, NI is doing good in the industry, outperforming 72.00% of the companies in the same industry.
Looking at the Operating Margin, with a value of 26.63%, NI belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
NI's Operating Margin has improved in the last couple of years.
The Gross Margin of NI (79.38%) 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 | 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%
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.
Compared to 5 years ago, NI has more shares outstanding
The debt/assets ratio for NI is higher compared to a year ago.
2.2 Solvency
NI has an Altman-Z score of 0.66. This is a bad value and indicates that NI is not financially healthy and even has some risk of bankruptcy.
NI's Altman-Z score of 0.66 is on the low side compared to the rest of the industry. NI is outperformed by 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.
NI's Debt to Equity ratio of 1.48 is in line compared to the rest of the industry. NI outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.67
WACC6.31%
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.
With a Current ratio value of 0.46, NI is not doing good in the industry: 92.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.35 indicates that NI may have some problems paying its short term obligations.
NI's Quick ratio of 0.35 is on the low side compared to the rest of the industry. NI is outperformed by 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.01% 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 3.92% on average per year.
Looking at the last year, NI shows a decrease in Revenue. The Revenue has decreased by -8.62% in the last year.
Measured over the past years, NI shows a small growth in Revenue. The Revenue has been growing by 1.48% on average per year.
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 8.17% on average per year.
The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y11.59%
EPS Next 2Y9.35%
EPS Next 3Y8.79%
EPS Next 5Y8.17%
Revenue Next Year1.32%
Revenue Next 2Y2.53%
Revenue Next 3Y3.41%
Revenue Next 5Y3.77%
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
With a Price/Earnings ratio of 20.23, NI is valued on the expensive side.
64.00% of the companies in the same industry are cheaper than NI, based on the Price/Earnings ratio.
NI is valuated rather cheaply when we compare the Price/Earnings ratio to 29.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.93 indicates a rather expensive valuation of NI.
Based on the Price/Forward Earnings ratio, NI is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of NI to the average of the S&P500 Index (23.98), we can say NI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 18.93 |
4.2 Price Multiples
64.00% of the companies in the same industry are cheaper than NI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.35 |
4.3 Compensation for Growth
NI's 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)1.75
PEG (5Y)5.16
EPS Next 2Y9.35%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 3.03%.
Compared to an average industry Dividend Yield of 3.99, NI is paying slightly less dividend.
NI's Dividend Yield is a higher than the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
The dividend of NI has a limited annual growth rate of 5.78%.
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)5.78%
Div Incr Years12
Div Non Decr Years19
5.3 Sustainability
NI pays out 64.40% of its income as dividend. This is not a sustainable payout ratio.
NI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.4%
EPS Next 2Y9.35%
EPS Next 3Y8.79%
NISOURCE INC
NYSE:NI (11/11/2024, 8:04:00 PM)
After market: 36.22 0 (0%)36.22
+0.25 (+0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 18.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.75
PEG (5Y)5.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 8.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.63% | ||
| PM (TTM) | 13.99% | ||
| GM | 79.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.01%
EPS 3Y6.62%
EPS 5Y
EPS Q2Q%
EPS Next Y11.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.62%
Revenue growth 3Y5.55%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y