NISOURCE INC (NI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NI - US65473P1057 - Common Stock
43.76 USD
+0.62 (+1.44%)
43.76 USD
0 (0%)
Overall NI gets a fundamental rating of 4 out of 10. We evaluated NI 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
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.
Each year in the past 5 years NI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NI (2.60%) is worse than 61.54% of its industry peers.
With a Return On Equity value of 9.80%, NI perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
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 3.96%.
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
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 92.31% of its industry peers.
NI's Operating Margin has been stable in the last couple of years.
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
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
The number of shares outstanding for NI has been increased compared to 5 years ago.
NI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that NI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.76, NI is in line with its industry, outperforming 46.15% of the companies in the same industry.
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 | 0.76 |
ROIC/WACC0.72
WACC6.29%
2.3 Liquidity
A Current Ratio of 0.52 indicates that NI may have some problems paying its short term obligations.
NI has a worse Current ratio (0.52) than 88.46% of its industry peers.
A Quick Ratio of 0.39 indicates that NI may have some problems paying 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
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%.
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
Based on estimates for the next years, NI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.73% on average per year.
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
NI is valuated rather expensively with a Price/Earnings ratio of 23.28.
Based on the Price/Earnings ratio, NI is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of NI to the average of the S&P500 Index (26.15), we can say NI is valued inline with the index average.
A Price/Forward Earnings ratio of 20.94 indicates a rather expensive valuation of NI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NI indicates a rather expensive valuation: NI more expensive than 88.46% of the companies listed in the same industry.
NI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 20.94 |
4.2 Price Multiples
NI's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.28 |
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.
The decent profitability rating of NI may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)4.01
EPS Next 2Y9.29%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.64%.
Compared to an average industry Dividend Yield of 3.44, 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 2.41, NI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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
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%
43.76
+0.62 (+1.44%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners100.02%
Inst Owner Change-3.59%
Ins Owners0.25%
Ins Owner Change-0.33%
Market Cap20.88B
Revenue(TTM)6.33B
Net Income(TTM)893.50M
Analysts84.35
Price Target47.25 (7.98%)
Short Float %2.44%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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)3.11%
PT rev (3m)3.97%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-4.1%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)4.55%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 20.94 | ||
| P/S | 3.3 | ||
| P/FCF | N/A | ||
| P/OCF | 9.54 | ||
| P/B | 2.29 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 12.28 |
EPS(TTM)1.88
EY4.3%
EPS(NY)2.09
Fwd EY4.78%
FCF(TTM)-1.42
FCFYN/A
OCF(TTM)4.59
OCFY10.48%
SpS13.26
BVpS19.11
TBVpS15.99
PEG (NY)2.15
PEG (5Y)4.01
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 | 0.76 |
F-Score6
WACC6.29%
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 23.28 and the Price/Book (PB) ratio is 2.29.
How financially healthy is NISOURCE INC?
The financial health rating of NISOURCE INC (NI) is 1 / 10.