NISOURCE INC (NI) Stock Fundamental Analysis
USA - NYSE:NI - US65473P1057 - Common Stock
42.87 USD
+0.29 (+0.68%)
42.87 USD
0 (0%)
NI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 26 industry peers in the Multi-Utilities industry. While NI has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, NI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year NI was profitable.
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 has a Return On Assets of 2.60%. This is in the lower half of the industry: NI underperforms 69.23% of its industry peers.
NI has a Return On Equity (9.80%) which is in line with its industry peers.
NI's Return On Invested Capital of 4.53% is amongst the best of the industry. NI outperforms 88.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NI is in line with the industry average of 3.89%.
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
The Profit Margin of NI (14.12%) is better than 69.23% of its industry peers.
NI's Profit Margin has improved in the last couple of years.
NI's Operating Margin of 27.54% is amongst the best of the industry. NI outperforms 96.15% of its industry peers.
NI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 76.62%, NI belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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
NI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NI has more shares outstanding
Compared to 1 year ago, NI has an improved debt to assets ratio.
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.
NI has a Altman-Z score (0.74) which is in line with its industry peers.
A Debt/Equity ratio of 1.73 is on the high side and indicates that NI has dependencies on debt 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
WACC6.31%
2.3 Liquidity
A Current Ratio of 0.52 indicates that NI may have some problems paying 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 84.62% of its industry peers.
A Quick Ratio of 0.39 indicates that NI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.39, NI is doing worse than 92.31% of the companies in the same industry.
| 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.
Looking at the last year, NI shows a quite strong growth in Revenue. The Revenue has grown by 19.62% 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)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 8.97% on average per year.
The Revenue is expected to grow by 5.03% on average over the next years.
EPS Next Y10.81%
EPS Next 2Y9.29%
EPS Next 3Y8.85%
EPS Next 5Y8.97%
Revenue Next Year4.64%
Revenue Next 2Y4.33%
Revenue Next 3Y4.35%
Revenue Next 5Y5.03%
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 22.80, which indicates a rather expensive current valuation of NI.
Based on the Price/Earnings ratio, NI is valued more expensive than 88.46% of the companies in the same industry.
When comparing the Price/Earnings ratio of NI to the average of the S&P500 Index (26.03), we can say NI is valued inline with the index average.
NI is valuated rather expensively with a Price/Forward Earnings ratio of 20.51.
NI's Price/Forward Earnings ratio is rather expensive when compared to the industry. NI is more expensive than 88.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, NI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 20.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.99 |
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)2.11
PEG (5Y)3.93
EPS Next 2Y9.29%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.66%.
With a Dividend Yield of 2.66, NI pays less dividend than the industry average, which is at 3.76. 92.31% of the companies listed in the same industry pay a better dividend than NI!
NI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of NI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.24%
EPS Next 2Y9.29%
EPS Next 3Y8.85%
42.87
+0.29 (+0.68%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners100.02%
Inst Owner Change-0.71%
Ins Owners0.25%
Ins Owner Change-0.64%
Market Cap20.19B
Revenue(TTM)6.33B
Net Income(TTM)893.50M
Analysts84.35
Price Target46.62 (8.75%)
Short Float %2.21%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)1.91%
PT rev (3m)3.85%
EPS NQ rev (1m)-2.24%
EPS NQ rev (3m)8.04%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)3.94%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 20.51 | ||
| P/S | 3.19 | ||
| P/FCF | N/A | ||
| P/OCF | 9.22 | ||
| P/B | 2.21 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 11.99 |
EPS(TTM)1.88
EY4.39%
EPS(NY)2.09
Fwd EY4.88%
FCF(TTM)-1.44
FCFYN/A
OCF(TTM)4.65
OCFY10.85%
SpS13.44
BVpS19.36
TBVpS16.21
PEG (NY)2.11
PEG (5Y)3.93
Graham Number28.62
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
WACC6.31%
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 Y10.81%
EPS Next 2Y9.29%
EPS Next 3Y8.85%
EPS Next 5Y8.97%
Revenue 1Y (TTM)19.62%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%18.28%
Revenue Next Year4.64%
Revenue Next 2Y4.33%
Revenue Next 3Y4.35%
Revenue Next 5Y5.03%
EBIT growth 1Y23.7%
EBIT growth 3Y13.01%
EBIT growth 5Y2.33%
EBIT Next Year84.82%
EBIT Next 3Y29.9%
EBIT Next 5Y22.23%
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 22.8 and the Price/Book (PB) ratio is 2.21.
How financially healthy is NISOURCE INC?
The financial health rating of NISOURCE INC (NI) is 1 / 10.