NISOURCE INC (NI) Stock Fundamental Analysis
USA - NYSE:NI - US65473P1057 - Common Stock
42.78 USD
-0.09 (-0.21%)
42.78 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NI. NI was compared to 26 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.
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.
Of the past 5 years NI 4 years were profitable.
In the past 5 years NI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.60%, NI is doing worse than 69.23% of the companies in the same industry.
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 3 year average ROIC (4.05%) for NI is below the current ROIC(4.53%), indicating increased profibility in the last year.
| 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 has a Operating Margin of 27.54%. This is amongst the best in the industry. NI outperforms 96.15% of its industry peers.
In the last couple of years the Operating Margin of NI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 76.62%, NI belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
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
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.
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
NI has an Altman-Z score of 0.75. 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 (0.75) is comparable to the rest of the industry.
NI has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
NI has a Debt to Equity ratio (1.73) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.72
WACC6.33%
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.
With a Current ratio value of 0.52, NI is not doing good in the industry: 84.62% 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.
The Quick ratio of NI (0.39) is worse than 92.31% 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.
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.
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 9.42% 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 5Y9.42%
Revenue Next Year4.64%
Revenue Next 2Y4.33%
Revenue Next 3Y4.35%
Revenue Next 5Y5.73%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 22.76, the valuation of NI can be described as rather expensive.
Based on the Price/Earnings ratio, NI is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 25.67, NI is valued at the same level.
NI is valuated rather expensively with a Price/Forward Earnings ratio of 20.47.
Based on the Price/Forward Earnings ratio, NI is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of NI to the average of the S&P500 Index (31.86), we can say NI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.76 | ||
| Fwd PE | 20.47 |
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 | 12.04 |
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)2.11
PEG (5Y)3.92
EPS Next 2Y9.29%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, NI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.24, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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
NI pays out 58.24% of its income as dividend. 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%
42.78
-0.09 (-0.21%)
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 Cap20.14B
Revenue(TTM)6.33B
Net Income(TTM)893.50M
Analysts84.35
Price Target46.62 (8.98%)
Short Float %2.21%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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 | 22.76 | ||
| Fwd PE | 20.47 | ||
| P/S | 3.18 | ||
| P/FCF | N/A | ||
| P/OCF | 9.2 | ||
| P/B | 2.21 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 12.04 |
EPS(TTM)1.88
EY4.39%
EPS(NY)2.09
Fwd EY4.89%
FCF(TTM)-1.44
FCFYN/A
OCF(TTM)4.65
OCFY10.87%
SpS13.44
BVpS19.36
TBVpS16.21
PEG (NY)2.11
PEG (5Y)3.92
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 | 0.75 |
F-Score6
WACC6.33%
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 5Y9.42%
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 5Y22.82%
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 22.76 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.