NiSource Inc.
NiSource Inc. Fundamental Analysis
NiSource Inc. (NI) shows moderate financial fundamentals with a PE ratio of 24.12, profit margin of 13.99%, and ROE of 10.23%. The company generates $6.7B in annual revenue with strong year-over-year growth of 21.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NI's fundamental strength across five key dimensions:
Efficiency Score
WeakNI struggles to generate sufficient returns from assets.
Valuation Score
ModerateNI shows balanced valuation metrics.
Growth Score
ExcellentNI delivers strong and consistent growth momentum.
Financial Health Score
WeakNI carries high financial risk with limited liquidity.
Profitability Score
WeakNI struggles to sustain strong margins.
Key Financial Metrics
Is NI Expensive or Cheap?
P/E Ratio
NI trades at 24.12 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NI's PEG of 7.68 indicates potential overvaluation.
Price to Book
The market values NiSource Inc. at 2.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.18 times EBITDA. This is generally considered low.
How Well Does NI Make Money?
Net Profit Margin
For every $100 in sales, NiSource Inc. keeps $13.99 as profit after all expenses.
Operating Margin
Core operations generate 27.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.23 in profit for every $100 of shareholder equity.
ROA
NiSource Inc. generates $2.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NiSource Inc. generates strong operating cash flow of $2.39B, reflecting robust business health.
Free Cash Flow
NiSource Inc. generates weak or negative free cash flow of $-425.00M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.89 in free cash annually.
FCF Yield
NI converts -1.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How NI Stacks Against Its Sector Peers
| Metric | NI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.12 | 19.72 | Worse (Expensive) |
| ROE | 10.23% | 908.00% | Weak |
| Net Margin | 13.99% | 8804.00% | Weak |
| Debt/Equity | 1.72 | 1.80 | Neutral |
| Current Ratio | 0.69 | 1.50 | Weak Liquidity |
| ROA | 2.54% | -6152.00% (disorted) | Weak |
NI outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NiSource Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.31%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
4392.31%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
73.91%
Industry Style: Defensive, Dividend, Income
High Growth