NISOURCE INC (NI) Stock Fundamental Analysis
NYSE:NI - US65473P1057 - Common Stock
42.67 USD
-0.27 (-0.63%)
42.67 USD
0 (0%)
NI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. While NI belongs to the best of the industry regarding profitability, 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
NI had positive earnings in the past year.
In the past year NI had a positive cash flow from operations.
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
With a Return On Assets value of 2.60%, NI is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
With a Return On Equity value of 9.96%, NI perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
NI has a better Return On Invested Capital (4.54%) than 92.00% 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 3.82%.
The 3 year average ROIC (4.05%) for NI is below the current ROIC(4.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 9.96% | ||
| ROIC | 4.54% |
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 14.43%, NI is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NI has grown nicely.
The Operating Margin of NI (27.13%) is better than 96.00% 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 (76.32%) is better than 84.00% of its industry peers.
In the last couple of years the Gross Margin of NI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.13% | ||
| PM (TTM) | 14.43% | ||
| GM | 76.32% |
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.
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 better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that NI is in the distress zone and has some risk of bankruptcy.
NI's Altman-Z score of 0.75 is in line compared to the rest of the industry. NI outperforms 44.00% of its industry peers.
NI has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.63, NI is in line with its industry, outperforming 44.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.71
WACC6.38%
2.3 Liquidity
A Current Ratio of 0.59 indicates that NI may have some problems paying its short term obligations.
NI has a worse Current ratio (0.59) than 80.00% of its industry peers.
A Quick Ratio of 0.48 indicates that NI may have some problems paying its short term obligations.
With a Quick ratio value of 0.48, NI is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.18% over the past year.
The Earnings Per Share has been growing slightly by 5.80% on average over the past years.
NI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.98%.
Measured over the past years, NI shows a small growth in Revenue. The Revenue has been growing by 0.93% on average per year.
EPS 1Y (TTM)6.18%
EPS 3Y7.72%
EPS 5Y5.8%
EPS Q2Q%4.76%
Revenue 1Y (TTM)16.98%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%18.28%
3.2 Future
The Earnings Per Share is expected to grow by 8.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.32% on average over the next years.
EPS Next Y10.5%
EPS Next 2Y9.16%
EPS Next 3Y8.68%
EPS Next 5Y8.69%
Revenue Next Year5.47%
Revenue Next 2Y4.63%
Revenue Next 3Y4.7%
Revenue Next 5Y5.32%
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 22.58.
Compared to the rest of the industry, the Price/Earnings ratio of NI indicates a rather expensive valuation: NI more expensive than 84.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NI to the average of the S&P500 Index (27.03), we can say NI is valued inline with the index average.
The Price/Forward Earnings ratio is 20.46, which indicates a rather expensive current valuation of NI.
Based on the Price/Forward Earnings ratio, NI is valued expensively inside the industry as 88.00% of the companies are valued cheaper.
NI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 20.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NI indicates a slightly more expensive valuation: NI is more expensive than 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.88 |
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)2.15
PEG (5Y)3.89
EPS Next 2Y9.16%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.65%.
Compared to an average industry Dividend Yield of 3.64, NI's dividend is way lower than its industry peers. On top of this 92.00% of the companies listed in the same industry pay a better dividend than NI!
Compared to an average S&P500 Dividend Yield of 2.34, NI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
The dividend of NI has a limited annual growth rate of 2.55%.
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)2.55%
Div Incr Years13
Div Non Decr Years20
5.3 Sustainability
57.33% of the earnings are spent on dividend by NI. 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.
DP57.33%
EPS Next 2Y9.16%
EPS Next 3Y8.68%
42.67
-0.27 (-0.63%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.59%
Inst Owner Change6.18%
Ins Owners0.25%
Ins Owner Change3.35%
Market Cap20.09B
Analysts84.17
Price Target46 (7.8%)
Short Float %2.54%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend1.07
Dividend Growth(5Y)2.55%
DP57.33%
Div Incr Years13
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.5%
Min EPS beat(2)3.06%
Max EPS beat(2)5.94%
EPS beat(4)3
Avg EPS beat(4)7.73%
Min EPS beat(4)-1.04%
Max EPS beat(4)22.96%
EPS beat(8)6
Avg EPS beat(8)8.17%
EPS beat(12)8
Avg EPS beat(12)4.39%
EPS beat(16)10
Avg EPS beat(16)3.77%
Revenue beat(2)2
Avg Revenue beat(2)5.22%
Min Revenue beat(2)1.66%
Max Revenue beat(2)8.78%
Revenue beat(4)2
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-9.33%
Max Revenue beat(4)8.78%
Revenue beat(8)2
Avg Revenue beat(8)-8.46%
Revenue beat(12)5
Avg Revenue beat(12)-4.01%
Revenue beat(16)7
Avg Revenue beat(16)-2.7%
PT rev (1m)2.46%
PT rev (3m)4.96%
EPS NQ rev (1m)5.99%
EPS NQ rev (3m)-2.93%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-4.43%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)5.14%
Revenue NY rev (3m)4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 20.46 | ||
| P/S | 3.28 | ||
| P/FCF | N/A | ||
| P/OCF | 9.75 | ||
| P/B | 2.26 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 12.88 |
EPS(TTM)1.89
EY4.43%
EPS(NY)2.09
Fwd EY4.89%
FCF(TTM)-1.69
FCFYN/A
OCF(TTM)4.38
OCFY10.26%
SpS13.02
BVpS18.86
TBVpS15.71
PEG (NY)2.15
PEG (5Y)3.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 9.96% | ||
| ROCE | 5.43% | ||
| ROIC | 4.54% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 4.83% | ||
| OM | 27.13% | ||
| PM (TTM) | 14.43% | ||
| GM | 76.32% | ||
| 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%
ROICexcg growth 3Y3.4%
ROICexcg 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 | 1.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.25 | ||
| Cap/Depr | 261.42% | ||
| Cap/Sales | 46.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 0.75 |
F-Score6
WACC6.38%
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)6.18%
EPS 3Y7.72%
EPS 5Y5.8%
EPS Q2Q%4.76%
EPS Next Y10.5%
EPS Next 2Y9.16%
EPS Next 3Y8.68%
EPS Next 5Y8.69%
Revenue 1Y (TTM)16.98%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%18.28%
Revenue Next Year5.47%
Revenue Next 2Y4.63%
Revenue Next 3Y4.7%
Revenue Next 5Y5.32%
EBIT growth 1Y16.84%
EBIT growth 3Y13.01%
EBIT growth 5Y2.33%
EBIT Next Year85.26%
EBIT Next 3Y30.89%
EBIT Next 5Y22.23%
FCF growth 1Y12.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.76%
OCF growth 3Y13.52%
OCF growth 5Y2.39%