NISOURCE INC (NI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NI - US65473P1057 - Common Stock
42.03 USD
+0.48 (+1.16%)
42.03 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.
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's Return On Assets of 2.60% is on the low side compared to the rest of the industry. NI is outperformed by 61.54% of its industry peers.
NI has a Return On Equity of 9.80%. This is comparable to the rest of the industry: NI outperforms 53.85% of its industry peers.
With an excellent Return On Invested Capital value of 4.53%, NI belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NI is in line with the industry average of 3.94%.
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
NI has a Profit Margin of 14.12%. This is in the better half of the industry: NI outperforms 69.23% of its industry peers.
NI's Profit Margin has improved in the last couple of years.
NI has a Operating Margin of 27.54%. This is amongst the best in 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.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 has been reduced compared to a year ago.
2.2 Solvency
NI has an Altman-Z score of 0.74. This is a bad value and indicates that NI is not financially healthy and even has some risk of bankruptcy.
NI has a Altman-Z score of 0.74. This is comparable to the rest of the industry: NI outperforms 46.15% of its industry peers.
A Debt/Equity ratio of 1.73 is on the high side and indicates that NI has dependencies on debt financing.
With a Debt to Equity ratio value of 1.73, NI perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.71
WACC6.34%
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.
NI has a Current ratio of 0.52. This is amonst the worse of the industry: NI underperforms 88.46% of its industry peers.
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 has a worse Quick ratio (0.39) than 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
NI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.03%.
NI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.80% yearly.
Looking at the last year, NI shows a quite strong growth in Revenue. The Revenue has grown by 19.62% in the last year.
NI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.93% yearly.
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.
NI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.73% yearly.
EPS Next Y10.92%
EPS Next 2Y9.78%
EPS Next 3Y9.25%
EPS Next 5Y9.73%
Revenue Next Year4.49%
Revenue Next 2Y4.01%
Revenue Next 3Y4.26%
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 22.36, the valuation of NI can be described as rather expensive.
Based on the Price/Earnings ratio, NI is valued more expensive than 88.46% of the companies in the same industry.
NI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 19.93 indicates a rather expensive valuation of NI.
NI's Price/Forward Earnings ratio is rather expensive when compared to the industry. NI is more expensive than 84.62% of the companies in the same industry.
NI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 19.93 |
4.2 Price Multiples
NI's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.92 |
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)2.05
PEG (5Y)3.85
EPS Next 2Y9.78%
EPS Next 3Y9.25%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.68%.
Compared to an average industry Dividend Yield of 4.62, 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!
Compared to an average S&P500 Dividend Yield of 1.94, NI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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 2Y9.78%
EPS Next 3Y9.25%
42.03
+0.48 (+1.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners100.34%
Inst Owner Change0%
Ins Owners0.23%
Ins Owner Change-0.36%
Market Cap20.06B
Revenue(TTM)6.33B
Net Income(TTM)893.50M
Analysts84.35
Price Target48.11 (14.47%)
Short Float %2.3%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend1.07
Dividend Growth(5Y)2.55%
DP58.24%
Div Incr Years13
Div Non Decr Years20
Ex-DateN/A
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)1.83%
PT rev (3m)5.17%
EPS NQ rev (1m)0.83%
EPS NQ rev (3m)1.07%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)16.07%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 19.93 | ||
| P/S | 3.17 | ||
| P/FCF | N/A | ||
| P/OCF | 9.16 | ||
| P/B | 2.2 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 11.92 |
EPS(TTM)1.88
EY4.47%
EPS(NY)2.11
Fwd EY5.02%
FCF(TTM)-1.42
FCFYN/A
OCF(TTM)4.59
OCFY10.92%
SpS13.26
BVpS19.11
TBVpS15.99
PEG (NY)2.05
PEG (5Y)3.85
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 | 0.74 |
F-Score6
WACC6.34%
ROIC/WACC0.71
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 Y10.92%
EPS Next 2Y9.78%
EPS Next 3Y9.25%
EPS Next 5Y9.73%
Revenue 1Y (TTM)19.62%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%18.28%
Revenue Next Year4.49%
Revenue Next 2Y4.01%
Revenue Next 3Y4.26%
Revenue Next 5Y5.73%
EBIT growth 1Y23.7%
EBIT growth 3Y13.01%
EBIT growth 5Y2.33%
EBIT Next Year86.06%
EBIT Next 3Y31.58%
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.
What is the valuation status for NI stock?
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.
Can you provide the PE and PB ratios for NI stock?
The Price/Earnings (PE) ratio for NISOURCE INC (NI) is 22.36 and the Price/Book (PB) ratio is 2.2.
Can you provide the expected EPS growth for NI stock?
The Earnings per Share (EPS) of NISOURCE INC (NI) is expected to grow by 10.92% in the next year.