NISOURCE INC - NI 7 3/4 03/01/24 (NIMC) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:NIMC • US65473P1214

99.69 USD
-1.62 (-1.6%)
At close: Nov 30, 2023
100.11 USD
+0.42 (+0.42%)
After Hours: 11/30/2023, 8:14:03 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to NIMC. NIMC was compared to 26 industry peers in the Multi-Utilities industry. While NIMC is still in line with the averages on profitability rating, there are concerns on its financial health. NIMC is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • NIMC had positive earnings in the past year.
  • In the past year NIMC had a positive cash flow from operations.
NIMC Yearly Net Income VS EBIT VS OCF VS FCFNIMC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M -500M 1B -1B 1.5B

1.2 Ratios

  • NIMC has a Return On Assets of 2.40%. This is comparable to the rest of the industry: NIMC outperforms 48.15% of its industry peers.
  • NIMC has a Return On Equity (9.25%) which is in line with its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.21%, NIMC belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
  • NIMC had an Average Return On Invested Capital over the past 3 years of 3.94%. This is in line with the industry average of 3.95%.
  • The last Return On Invested Capital (4.21%) for NIMC is above the 3 year average (3.94%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.4%
ROE 9.25%
ROIC 4.21%
ROA(3y)1.55%
ROA(5y)1.16%
ROE(3y)5.42%
ROE(5y)4.12%
ROIC(3y)3.94%
ROIC(5y)3.52%
NIMC Yearly ROA, ROE, ROICNIMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 2 4 6 8

1.3 Margins

  • Looking at the Profit Margin, with a value of 11.52%, NIMC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • In the last couple of years the Profit Margin of NIMC has grown nicely.
  • NIMC's Operating Margin of 22.44% is amongst the best of the industry. NIMC outperforms 85.19% of its industry peers.
  • NIMC's Operating Margin has been stable in the last couple of years.
  • NIMC has a Gross Margin of 67.39%. This is in the better half of the industry: NIMC outperforms 66.67% of its industry peers.
  • NIMC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 22.44%
PM (TTM) 11.52%
GM 67.39%
OM growth 3Y-7.46%
OM growth 5Y0.87%
PM growth 3Y26.68%
PM growth 5Y37.17%
GM growth 3Y-3.23%
GM growth 5Y-1.47%
NIMC Yearly Profit, Operating, Gross MarginsNIMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NIMC is destroying value.
  • NIMC has more shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, NIMC has a worse debt to assets ratio.
NIMC Yearly Shares OutstandingNIMC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M
NIMC Yearly Total Debt VS Total AssetsNIMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B 25B

2.2 Solvency

  • Based on the Altman-Z score of 1.39, we must say that NIMC is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.39, NIMC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • NIMC has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
  • NIMC has a Debt to Equity ratio of 1.83. This is in the lower half of the industry: NIMC underperforms 77.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.83
Debt/FCF N/A
Altman-Z 1.39
ROIC/WACC0.56
WACC7.54%
NIMC Yearly LT Debt VS Equity VS FCFNIMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.41 indicates that NIMC may have some problems paying its short term obligations.
  • The Current ratio of NIMC (0.41) is worse than 96.30% of its industry peers.
  • A Quick Ratio of 0.29 indicates that NIMC may have some problems paying its short term obligations.
  • The Quick ratio of NIMC (0.29) is worse than 96.30% of its industry peers.
Industry RankSector Rank
Current Ratio 0.41
Quick Ratio 0.29
NIMC Yearly Current Assets VS Current LiabilitesNIMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 15.44% over the past year.
  • NIMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.97% yearly.
  • NIMC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.20%.
  • NIMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.72% yearly.
EPS 1Y (TTM)15.44%
EPS 3Y3.65%
EPS 5Y3.97%
EPS Q2Q%90%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y3.95%
Revenue growth 5Y3.72%
Sales Q2Q%-5.7%

3.2 Future

  • NIMC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 8.00% yearly.
  • NIMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.37% yearly.
EPS Next Y11.15%
EPS Next 2Y9.32%
EPS Next 3Y8.78%
EPS Next 5Y8%
Revenue Next Year9.33%
Revenue Next 2Y7.23%
Revenue Next 3Y6.8%
Revenue Next 5Y6.37%

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.
NIMC Yearly Revenue VS EstimatesNIMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
NIMC Yearly EPS VS EstimatesNIMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

1

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 63.50 indicates a quite expensive valuation of NIMC.
  • 92.59% of the companies in the same industry are cheaper than NIMC, based on the Price/Earnings ratio.
  • NIMC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.93.
  • With a Price/Forward Earnings ratio of 56.75, NIMC can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, NIMC is valued more expensive than 96.30% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.77, NIMC is valued quite expensively.
Industry RankSector Rank
PE 63.5
Fwd PE 56.75
NIMC Price Earnings VS Forward Price EarningsNIMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NIMC is valued expensively inside the industry as 92.59% of the companies are valued cheaper.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 24.1
NIMC Per share dataNIMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NIMC does not grow enough to justify the current Price/Earnings ratio.
  • NIMC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.7
PEG (5Y)16
EPS Next 2Y9.32%
EPS Next 3Y8.78%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.78%, NIMC has a reasonable but not impressive dividend return.
  • NIMC's Dividend Yield is a higher than the industry average which is at 3.46.
  • NIMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 3.78%

5.2 History

  • The dividend of NIMC is nicely growing with an annual growth rate of 9.01%!
  • NIMC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)9.01%
Div Incr Years2
Div Non Decr Years2
NIMC Yearly Dividends per shareNIMC Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2 4 6

5.3 Sustainability

  • NIMC pays out 69.08% of its income as dividend. This is not a sustainable payout ratio.
  • NIMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP69.08%
EPS Next 2Y9.32%
EPS Next 3Y8.78%
NIMC Yearly Income VS Free CF VS DividendNIMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 500M -500M -1B
NIMC Dividend Payout.NIMC Dividend Payout, showing the Payout Ratio.NIMC Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

NISOURCE INC - NI 7 3/4 03/01/24

NYSE:NIMC (11/30/2023, 8:14:03 PM)

After market: 100.11 +0.42 (+0.42%)

99.69

-1.62 (-1.6%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)11-01
Earnings (Next)02-20
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap41.21B
Revenue(TTM)5.79B
Net Income(TTM)666.90M
Analysts85.71
Price Target117.79 (18.16%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.78%
Yearly Dividend1.07
Dividend Growth(5Y)9.01%
DP69.08%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.97%
Min EPS beat(2)1.1%
Max EPS beat(2)16.84%
EPS beat(4)3
Avg EPS beat(4)4.61%
Min EPS beat(4)-0.55%
Max EPS beat(4)16.84%
EPS beat(8)4
Avg EPS beat(8)-0.12%
EPS beat(12)6
Avg EPS beat(12)0.6%
EPS beat(16)9
Avg EPS beat(16)18.05%
Revenue beat(2)0
Avg Revenue beat(2)-6.66%
Min Revenue beat(2)-8.02%
Max Revenue beat(2)-5.3%
Revenue beat(4)2
Avg Revenue beat(4)2.09%
Min Revenue beat(4)-8.02%
Max Revenue beat(4)19.45%
Revenue beat(8)5
Avg Revenue beat(8)2.3%
Revenue beat(12)5
Avg Revenue beat(12)-2.53%
Revenue beat(16)5
Avg Revenue beat(16)-5.28%
PT rev (1m)-2.44%
PT rev (3m)-0.46%
EPS NQ rev (1m)3.77%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)0.47%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-6.49%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)-0.74%
Valuation
Industry RankSector Rank
PE 63.5
Fwd PE 56.75
P/S 7.12
P/FCF N/A
P/OCF 21.59
P/B 5.71
P/tB 7.2
EV/EBITDA 24.1
EPS(TTM)1.57
EY1.57%
EPS(NY)1.76
Fwd EY1.76%
FCF(TTM)-1.98
FCFYN/A
OCF(TTM)4.62
OCFY4.63%
SpS14
BVpS17.44
TBVpS13.85
PEG (NY)5.7
PEG (5Y)16
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 2.4%
ROE 9.25%
ROCE 5.54%
ROIC 4.21%
ROICexc 4.22%
ROICexgc 4.47%
OM 22.44%
PM (TTM) 11.52%
GM 67.39%
FCFM N/A
ROA(3y)1.55%
ROA(5y)1.16%
ROE(3y)5.42%
ROE(5y)4.12%
ROIC(3y)3.94%
ROIC(5y)3.52%
ROICexc(3y)3.96%
ROICexc(5y)3.54%
ROICexgc(3y)4.24%
ROICexgc(5y)3.8%
ROCE(3y)4.96%
ROCE(5y)4.49%
ROICexgc growth 3Y-8.73%
ROICexgc growth 5Y-2.06%
ROICexc growth 3Y-8.4%
ROICexc growth 5Y-1.1%
OM growth 3Y-7.46%
OM growth 5Y0.87%
PM growth 3Y26.68%
PM growth 5Y37.17%
GM growth 3Y-3.23%
GM growth 5Y-1.47%
F-Score5
Asset Turnover0.21
Health
Industry RankSector Rank
Debt/Equity 1.83
Debt/FCF N/A
Debt/EBITDA 6.11
Cap/Depr 314.55%
Cap/Sales 47.12%
Interest Coverage 250
Cash Conversion 88.14%
Profit Quality N/A
Current Ratio 0.41
Quick Ratio 0.29
Altman-Z 1.39
F-Score5
WACC7.54%
ROIC/WACC0.56
Cap/Depr(3y)269.97%
Cap/Depr(5y)279.51%
Cap/Sales(3y)40.25%
Cap/Sales(5y)39.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.44%
EPS 3Y3.65%
EPS 5Y3.97%
EPS Q2Q%90%
EPS Next Y11.15%
EPS Next 2Y9.32%
EPS Next 3Y8.78%
EPS Next 5Y8%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y3.95%
Revenue growth 5Y3.72%
Sales Q2Q%-5.7%
Revenue Next Year9.33%
Revenue Next 2Y7.23%
Revenue Next 3Y6.8%
Revenue Next 5Y6.37%
EBIT growth 1Y20.26%
EBIT growth 3Y-3.81%
EBIT growth 5Y4.62%
EBIT Next Year76.04%
EBIT Next 3Y29.12%
EBIT Next 5Y21.31%
FCF growth 1Y-16.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y61.15%
OCF growth 3Y-3.8%
OCF growth 5Y13.68%

NISOURCE INC - NI 7 3/4 03/01/24 / NIMC FAQ

What is the ChartMill fundamental rating of NISOURCE INC - NI 7 3/4 03/01/24 (NIMC) stock?

ChartMill assigns a fundamental rating of 4 / 10 to NIMC.


What is the valuation status for NIMC stock?

ChartMill assigns a valuation rating of 1 / 10 to NISOURCE INC - NI 7 3/4 03/01/24 (NIMC). This can be considered as Overvalued.


What is the profitability of NIMC stock?

NISOURCE INC - NI 7 3/4 03/01/24 (NIMC) has a profitability rating of 7 / 10.


How financially healthy is NISOURCE INC - NI 7 3/4 03/01/24?

The financial health rating of NISOURCE INC - NI 7 3/4 03/01/24 (NIMC) is 1 / 10.


Can you provide the dividend sustainability for NIMC stock?

The dividend rating of NISOURCE INC - NI 7 3/4 03/01/24 (NIMC) is 4 / 10 and the dividend payout ratio is 69.08%.