NISOURCE INC (NI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NI - US65473P1057 - Common Stock
43 USD
-1.13 (-2.56%)
43 USD
0 (0%)
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. NI is quite expensive at the moment. It does show a decent growth rate.
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
Looking at the Return On Assets, with a value of 2.60%, NI is doing worse than 61.54% of the companies in the same industry.
NI has a Return On Equity (9.80%) which is in line with its industry peers.
NI has a better Return On Invested Capital (4.53%) than 92.31% 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 3.96%.
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
Looking at the Profit Margin, with a value of 14.12%, NI is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
In the last couple of years the Profit Margin of NI has grown nicely.
NI's Operating Margin of 27.54% is amongst the best of the industry. NI outperforms 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.
The Gross Margin of NI (76.62%) is better than 84.62% of its industry peers.
NI's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, NI has more shares outstanding
NI has more shares outstanding than it did 5 years ago.
NI has a better debt/assets ratio than last year.
2.2 Solvency
NI has an Altman-Z score of 0.77. This is a bad value and indicates that NI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NI (0.77) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.73 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 1.73, NI is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.72
WACC6.27%
2.3 Liquidity
A Current Ratio of 0.52 indicates that NI may have some problems paying its short term obligations.
With a Current ratio value of 0.52, NI is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
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's Quick ratio of 0.39 is on the low side compared to the rest of the industry. NI is outperformed by 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.
NI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.80% yearly.
NI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.62%.
The Revenue has been growing slightly by 0.93% on average over the past years.
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
NI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.73% yearly.
Based on estimates for the next years, NI will show a small growth in Revenue. The Revenue will grow by 5.73% on average per year.
EPS Next Y10.81%
EPS Next 2Y9.29%
EPS Next 3Y8.85%
EPS Next 5Y9.73%
Revenue Next Year4.64%
Revenue Next 2Y4.33%
Revenue Next 3Y4.35%
Revenue Next 5Y5.73%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.87, the valuation of NI can be described as rather expensive.
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.
When comparing the Price/Earnings ratio of NI to the average of the S&P500 Index (26.31), we can say NI is valued inline with the index average.
NI is valuated rather expensively with a Price/Forward Earnings ratio of 20.57.
Based on the Price/Forward Earnings ratio, NI is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
NI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 20.57 |
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 | 12.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NI may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)3.94
EPS Next 2Y9.29%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.56%.
Compared to an average industry Dividend Yield of 3.37, NI's dividend is way lower than its industry peers. On top of this 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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
NI pays out 58.24% of its income as dividend. 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 2Y9.29%
EPS Next 3Y8.85%
43
-1.13 (-2.56%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners100.02%
Inst Owner Change-3.58%
Ins Owners0.25%
Ins Owner Change-0.36%
Market Cap20.52B
Revenue(TTM)6.33B
Net Income(TTM)893.50M
Analysts84.35
Price Target47.25 (9.88%)
Short Float %2.44%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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)1.35%
PT rev (3m)2.71%
EPS NQ rev (1m)1.44%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)16.07%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 20.57 | ||
| P/S | 3.24 | ||
| P/FCF | N/A | ||
| P/OCF | 9.37 | ||
| P/B | 2.25 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 12.35 |
EPS(TTM)1.88
EY4.37%
EPS(NY)2.09
Fwd EY4.86%
FCF(TTM)-1.42
FCFYN/A
OCF(TTM)4.59
OCFY10.67%
SpS13.26
BVpS19.11
TBVpS15.99
PEG (NY)2.12
PEG (5Y)3.94
Graham Number28.43
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 | 0.77 |
F-Score6
WACC6.27%
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 5Y9.73%
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 5Y5.73%
EBIT growth 1Y23.7%
EBIT growth 3Y13.01%
EBIT growth 5Y2.33%
EBIT Next Year84.82%
EBIT Next 3Y29.9%
EBIT Next 5Y24.21%
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 2 / 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 22.87 and the Price/Book (PB) ratio is 2.25.
How financially healthy is NISOURCE INC?
The financial health rating of NISOURCE INC (NI) is 1 / 10.