NISOURCE INC (NI) Stock Fundamental Analysis
USA - NYSE:NI - US65473P1057 - Common Stock
43.74 USD
-0.43 (-0.97%)
NI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 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
In the past year NI was profitable.
NI had a positive operating cash flow in the past year.
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
NI's Return On Assets of 2.60% is on the low side compared to the rest of the industry. NI is outperformed by 68.00% of its industry peers.
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 Return On Invested Capital of 4.54%. This is amongst the best in the industry. NI outperforms 92.00% of its industry peers.
NI had an Average Return On Invested Capital over the past 3 years of 4.05%. This is in line with the industry average of 3.82%.
The last Return On Invested Capital (4.54%) 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 | 9.96% | ||
| 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.
NI's Profit Margin has improved in the last couple of years.
The Operating Margin of NI (27.13%) is better than 96.00% of its industry peers.
NI's Operating Margin has been stable in the last couple of years.
NI has a Gross Margin of 76.32%. This is amongst the best in the industry. NI outperforms 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NI is destroying value.
NI has more shares outstanding than it did 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 0.77. This is a bad value and indicates that NI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.77, NI is in line with its industry, outperforming 44.00% of the companies in the same industry.
NI has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
NI has a Debt to Equity ratio (1.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.71
WACC6.36%
2.3 Liquidity
A Current Ratio of 0.59 indicates that NI may have some problems paying its short term obligations.
The Current ratio of NI (0.59) is worse 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.
The Quick ratio of NI (0.48) is worse than 84.00% of its industry peers.
| 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%.
The Revenue has been growing slightly by 0.93% on average over the past years.
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
Based on estimates for the next years, NI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.97% on average per year.
NI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.03% yearly.
EPS Next Y10.39%
EPS Next 2Y9.05%
EPS Next 3Y8.66%
EPS Next 5Y8.97%
Revenue Next Year3.64%
Revenue Next 2Y3.96%
Revenue Next 3Y4.35%
Revenue Next 5Y5.03%
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
NI is valuated rather expensively with a Price/Earnings ratio of 23.14.
NI's Price/Earnings ratio is rather expensive when compared to the industry. NI is more expensive than 84.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of NI to the average of the S&P500 Index (27.90), we can say NI is valued inline with the index average.
NI is valuated rather expensively with a Price/Forward Earnings ratio of 21.02.
Based on the Price/Forward Earnings ratio, NI is valued expensively inside the industry as 88.00% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 23.36. NI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 21.02 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than NI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.14 |
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.
NI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)3.99
EPS Next 2Y9.05%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
NI has a Yearly Dividend Yield of 2.60%.
Compared to an average industry Dividend Yield of 4.41, 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 2.44, NI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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 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 57.33% of its income as dividend. 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 2Y9.05%
EPS Next 3Y8.66%
NYSE:NI (10/7/2025, 11:18:05 AM)
43.74
-0.43 (-0.97%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners100.02%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change-0.64%
Market Cap20.60B
Analysts82.73
Price Target45.82 (4.76%)
Short Float %2.25%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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)-0.38%
PT rev (3m)2.24%
EPS NQ rev (1m)4.27%
EPS NQ rev (3m)15.3%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.43%
Revenue NY rev (1m)-1.73%
Revenue NY rev (3m)3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 21.02 | ||
| P/S | 3.36 | ||
| P/FCF | N/A | ||
| P/OCF | 9.99 | ||
| P/B | 2.32 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 13.14 |
EPS(TTM)1.89
EY4.32%
EPS(NY)2.08
Fwd EY4.76%
FCF(TTM)-1.69
FCFYN/A
OCF(TTM)4.38
OCFY10.01%
SpS13.02
BVpS18.86
TBVpS15.71
PEG (NY)2.23
PEG (5Y)3.99
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 | 0.77 |
F-Score6
WACC6.36%
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 Y10.39%
EPS Next 2Y9.05%
EPS Next 3Y8.66%
EPS Next 5Y8.97%
Revenue 1Y (TTM)16.98%
Revenue growth 3Y3.64%
Revenue growth 5Y0.93%
Sales Q2Q%18.28%
Revenue Next Year3.64%
Revenue Next 2Y3.96%
Revenue Next 3Y4.35%
Revenue Next 5Y5.03%
EBIT growth 1Y16.84%
EBIT growth 3Y13.01%
EBIT growth 5Y2.33%
EBIT Next Year84.82%
EBIT Next 3Y29.9%
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%