Logo image of NIMC

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

NYSE:NIMC - New York Stock Exchange, Inc. - US65473P1214 - Currency: USD

99.69  -1.62 (-1.6%)

After market: 100.11 +0.42 (+0.42%)

Fundamental Rating

4

Overall NIMC gets a fundamental rating of 4 out of 10. We evaluated NIMC against 25 industry peers in the Multi-Utilities industry. NIMC scores excellent on profitability, but there are concerns on its financial health. NIMC is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

7

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.
In multiple years NIMC reported negative net income over the last 5 years.
Each year in the past 5 years NIMC had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 500M -500M 1B -1B 1.5B

1.2 Ratios

The Return On Assets of NIMC (2.40%) is comparable to the rest of the industry.
The Return On Equity of NIMC (9.25%) is comparable to the rest of the industry.
NIMC has a better Return On Invested Capital (4.21%) than 81.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NIMC is in line with the industry average of 3.85%.
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 2015 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.
NIMC's Profit Margin has improved in the last couple of years.
NIMC has a better Operating Margin (22.44%) than 85.19% of its industry peers.
In the last couple of years the Operating Margin of NIMC has remained more or less at the same level.
The Gross Margin of NIMC (67.39%) is better than 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 2015 2016 2017 2018 2019 2020 2021 2022 0 20 40 60

More info and screens

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NIMC is destroying value.
NIMC has more shares outstanding than it did 1 year ago.
NIMC has a worse debt/assets ratio than last year.
NIMC Yearly Shares OutstandingNIMC Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
NIMC has a Altman-Z score of 1.39. This is amongst the best in the industry. NIMC outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 1.83 is on the high side and indicates that NIMC has dependencies on debt 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 2015 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B 8B

2.3 Liquidity

NIMC has a Current Ratio of 0.41. This is a bad value and indicates that NIMC is not financially healthy enough and could expect problems in meeting its short term obligations.
NIMC has a Current ratio of 0.41. This is amonst the worse of the industry: NIMC underperforms 96.30% of its industry peers.
A Quick Ratio of 0.29 indicates that NIMC may have some problems paying its short term obligations.
NIMC has a Quick ratio of 0.29. This is amonst the worse of the industry: NIMC underperforms 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 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

More info and screens

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.
The Revenue has been growing slightly by 4.20% in the past year.
The Revenue has been growing slightly by 3.72% on average over the past years.
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

The Earnings Per Share is expected to grow by 8.00% on average over the next years.
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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2

More info and screens

1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 63.50, NIMC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NIMC is valued expensively inside the industry as 92.59% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 24.85. NIMC is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 56.75, which means the current valuation is very expensive for NIMC.
Based on the Price/Forward Earnings ratio, NIMC is valued expensively inside the industry as 96.30% of the companies are valued cheaper.
NIMC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.89.
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

NIMC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. NIMC is more expensive than 92.59% of the companies in the same industry.
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%

More info and screens

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.78%, NIMC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.67, NIMC pays a bit more dividend than its industry peers.
NIMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
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 paid a dividend for less than 5 years, so there is no long track record yet.
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

69.08% of the earnings are spent on dividend by NIMC. 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 2015 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

More info and screens

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 2023-11-01/bmo
Earnings (Next)02-20 2024-02-20/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap41.21B
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
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%
ROICexcg growth 3Y-8.73%
ROICexcg 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%