NISOURCE INC (NI)
US65473P1057 - Common Stock
Overall NI gets a fundamental rating of 3 out of 10. We evaluated NI against 26 industry peers in the Multi-Utilities industry. NI has a medium profitability rating, but doesn't score so well on its financial health evaluation. NI is valied quite expensively at the moment, while it does show a decent growth rate. Finally NI also has an excellent dividend rating.
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.
Each year in the past 5 years NI had a positive operating cash flow.
1.2 Ratios
NI has a worse Return On Assets (2.13%) than 80.77% of its industry peers.
NI's Return On Equity of 8.00% is on the low side compared to the rest of the industry. NI is outperformed by 73.08% of its industry peers.
With a Return On Invested Capital value of 3.73%, NI perfoms like the industry average, outperforming 57.69% 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 3.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 8% | ||
| ROIC | 3.73% |
ROA(3y)2.37%
ROA(5y)1.65%
ROE(3y)8.5%
ROE(5y)5.94%
ROIC(3y)3.86%
ROIC(5y)4.15%
1.3 Margins
NI has a Profit Margin of 12.01%. This is comparable to the rest of the industry: NI outperforms 50.00% of its industry peers.
NI has a better Operating Margin (23.58%) than 84.62% of its industry peers.
NI's Operating Margin has improved in the last couple of years.
The Gross Margin of NI (72.15%) is better than 73.08% of its industry peers.
In the last couple of years the Gross Margin of NI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.58% | ||
| PM (TTM) | 12.01% | ||
| GM | 72.15% |
OM growth 3Y4.72%
OM growth 5Y57.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.85%
GM growth 5Y1.93%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NI is destroying value.
NI has more shares outstanding than it did 1 year ago.
NI has more shares outstanding than it did 5 years ago.
NI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.58, we must say that NI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NI (0.58) is worse than 88.46% of its industry peers.
NI has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.71, NI is in line with its industry, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.58 |
ROIC/WACC0.62
WACC5.99%
2.3 Liquidity
NI has a Current Ratio of 0.85. 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 decent Current ratio value of 0.85, NI is doing good in the industry, outperforming 61.54% of the companies in the same industry.
NI has a Quick Ratio of 0.85. 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 better Quick ratio (0.76) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
NI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.84%, which is quite good.
NI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.92% yearly.
Looking at the last year, NI shows a decrease in Revenue. The Revenue has decreased by -5.90% in the last year.
Measured over the past years, NI shows a small growth in Revenue. The Revenue has been growing by 1.48% on average per year.
EPS 1Y (TTM)8.84%
EPS 3Y6.62%
EPS 5Y3.92%
EPS growth Q2Q6%
Revenue 1Y (TTM)-5.9%
Revenue growth 3Y5.55%
Revenue growth 5Y1.48%
Revenue growth Q2Q-16.58%
3.2 Future
The Earnings Per Share is expected to grow by 7.60% on average over the next years.
Based on estimates for the next years, NI will show a small growth in Revenue. The Revenue will grow by 4.10% on average per year.
EPS Next Y10.82%
EPS Next 2Y9.31%
EPS Next 3Y8.31%
EPS Next 5Y7.6%
Revenue Next Year5.27%
Revenue Next 2Y6.44%
Revenue Next 3Y8.75%
Revenue Next 5Y4.1%
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.
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
The Price/Earnings ratio is 17.95, which indicates a rather expensive current valuation of NI.
NI's Price/Earnings is on the same level as the industry average.
NI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
A Price/Forward Earnings ratio of 16.20 indicates a correct valuation of NI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NI indicates a slightly more expensive valuation: NI is more expensive than 65.38% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.30. NI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 16.2 |
4.2 Price Multiples
NI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NI is cheaper than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.84 |
4.3 Compensation for Growth
NI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.66
PEG (5Y)4.58
EPS Next 2Y9.31%
EPS Next 3Y8.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.65%, NI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.19, NI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, NI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
5.2 History
The dividend of NI has a limited annual growth rate of 5.78%.
NI has paid a dividend for at least 10 years, which is 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)5.78%
Div Incr Years12
Div Non Decr Years19
5.3 Sustainability
69.14% of the earnings are spent on dividend by NI. This is not a sustainable payout ratio.
The dividend of NI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.14%
EPS Next 2Y9.31%
EPS Next 3Y8.31%
NISOURCE INC
NYSE:NI (5/8/2024, 7:08:41 PM)
After market: 28.72 0 (0%)28.72
-0.33 (-1.14%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 16.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.66
PEG (5Y)4.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.58% | ||
| PM (TTM) | 12.01% | ||
| GM | 72.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.84%
EPS 3Y6.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.9%
Revenue growth 3Y5.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y