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

NYSE:NIMC • US65473P1214

Current stock price

99.69 USD
-1.62 (-1.6%)
At close:
100.11 USD
+0.42 (+0.42%)
After Hours:

This NIMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. NIMC Profitability Analysis

1.1 Basic Checks

  • In the past year NIMC was profitable.
  • NIMC had a positive operating cash flow in the past year.
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's Return On Equity of 9.25% is in line compared to the rest of the industry. NIMC outperforms 40.74% of 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 3.74%.
  • 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

  • The Profit Margin of NIMC (11.52%) is better than 66.67% of its industry peers.
  • NIMC's Profit Margin has improved in the last couple of years.
  • NIMC's Operating Margin of 22.44% is amongst the best of the industry. NIMC outperforms 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.
  • In the last couple of years the Gross Margin of NIMC has remained more or less at the same level.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. NIMC Health Analysis

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.
  • 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

  • NIMC has an Altman-Z score of 1.39. This is a bad value and indicates that NIMC is not financially healthy and even 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 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.
  • Looking at the Current ratio, with a value of 0.41, NIMC is doing worse than 96.30% of the companies in the same industry.
  • A Quick Ratio of 0.29 indicates that NIMC may have some problems paying its short term obligations.
  • NIMC has a worse Quick ratio (0.29) 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

More info and screens

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

5

3. NIMC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 15.44% over the past year.
  • The Earnings Per Share has been growing slightly by 3.97% on average over the past years.
  • The Revenue has been growing slightly by 4.20% in the past year.
  • 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

  • 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

  • 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.
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

More info and screens

Find the best growth stocksShow best growing peers

1

4. NIMC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 63.50, which means the current valuation is very expensive for NIMC.
  • Based on the Price/Earnings ratio, NIMC is valued more expensive than 92.59% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.91. NIMC is valued rather expensively when compared to this.
  • 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.
  • NIMC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.99.
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 an expensive valuation of the company.
  • 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

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

4

5. NIMC Dividend Analysis

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 3.37, NIMC pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, NIMC pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.78%

5.2 History

  • On average, the dividend of NIMC grows each year by 9.01%, which is quite nice.
  • 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

  • 69.08% of the earnings are spent on dividend by NIMC. This is not a sustainable payout ratio.
  • The dividend of NIMC is growing, but the earnings are growing slower. 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

More info and screens

Find the best dividend stocksShow peers with best dividend

NIMC Fundamentals: All Metrics, Ratios and Statistics

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 Number0 (-100%)
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 Fundamental Analysis 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.


How profitable is NISOURCE INC - NI 7 3/4 03/01/24 (NIMC) stock?

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


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

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


What is the expected EPS growth for NISOURCE INC - NI 7 3/4 03/01/24 (NIMC) stock?

The Earnings per Share (EPS) of NISOURCE INC - NI 7 3/4 03/01/24 (NIMC) is expected to grow by 11.15% in the next year.