NiSource Inc.
NiSource Inc. Fundamental Analysis
NiSource Inc. (NIMC) shows weak financial fundamentals with a PE ratio of 50.72, profit margin of 13.99%, and ROE of 10.23%. The company generates $1.5B in annual revenue with weak year-over-year growth of -0.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NIMC's fundamental strength across five key dimensions:
Efficiency Score
WeakNIMC struggles to generate sufficient returns from assets.
Valuation Score
WeakNIMC trades at a premium to fair value.
Growth Score
WeakNIMC faces weak or negative growth trends.
Financial Health Score
WeakNIMC carries high financial risk with limited liquidity.
Profitability Score
WeakNIMC struggles to sustain strong margins.
Key Financial Metrics
Is NIMC Expensive or Cheap?
P/E Ratio
NIMC trades at 50.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NIMC's PEG of 49.20 indicates potential overvaluation.
Price to Book
The market values NiSource Inc. at 4.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -3.89 times EBITDA. This is generally considered low.
How Well Does NIMC 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 $0.00 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 $541.51M, reflecting robust business health.
Free Cash Flow
NiSource Inc. generates weak or negative free cash flow of $-96.28M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.89 in free cash annually.
FCF Yield
NIMC converts -3.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
50.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
49.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
-0.53
vs 25 benchmark
How NIMC Stacks Against Its Sector Peers
| Metric | NIMC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 50.72 | 19.72 | Worse (Expensive) |
| ROE | 10.23% | 908.00% | Weak |
| Net Margin | 13.99% | 8804.00% | Weak |
| Debt/Equity | 1.64 | 1.80 | Neutral |
| Current Ratio | 0.00 | 1.50 | Weak Liquidity |
| ROA | 0.00% | -6152.00% (disorted) | Weak |
NIMC 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
-13.62%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
63.72%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-7.19%
Industry Style: Defensive, Dividend, Income
Declining