NiSource Inc
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Gas
NiSource Inc. is one of the largest fully-regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The mission of our approximately 7,700 employees is to deliver safe, reliable energy that drives value to our customers. NiSource is a member of the Dow Jones Sustainability - North America Index and is on Forbes lists of America’s Best Employers for Women and Diversity.
Did you know?
Carries 119.5x more debt than cash on its balance sheet.
Current Price
$47.49
+1.26%GoodMoat Value
$34.93
26.4% overvaluedProfile
Valuation (TTM)
Market Cap$22.66B
P/E24.38
EV$37.78B
P/B2.40
Shares Out477.20M
P/Sales3.41
Revenue$6.64B
EV/EBITDA13.18
NiSource Inc (NI) Stock Analysis
GoodMoat Analysis
NiSource is a regulated gas utility with a moderate moat from regulatory barriers but questionable quality metrics. At its current price, the stock appears unfavourable for a value investor, trading at a significant premium to the GoodMoat target.
Read full analysis
NiSource Inc operates in the regulated gas utility sector, providing essential energy services. Applying the GoodMoat framework, its primary competitive advantage is a regulatory moat, scoring highly on criteria like regulatory barriers and niche dominance in its service territories. However, its overall Moat Score is likely moderate, as utilities typically lack other durable advantages like network effects or strong pricing power. The business fails the initial Quality Gate of the Decision Framework. Key quality indicators are weak: it has a negative Free Cash Flow Yield of -3.6%, a high Debt/Equity ratio of 1.72, and an ROE of 9.8%, which falls below the high-quality threshold of 15-20%. While revenue growth is strong at 19.8% YoY, this is atypical for a utility and may not be sustainable. The valuation assessment is clearly unfavourable. The stock trades at a P/E of 23.5, and the provided GoodMoat Target of $34.93 implies the current price of $45.73 represents a significant overvaluation, with a negative margin of safety. Given the combination of weak quality signals and extreme valuation relative to the target, this stock does not pass the framework's gates for further investigation by a value investor seeking a margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$22.66B
Current Price$47.49
P/E Ratio24.38
Forward P/E—
PEG Ratio1.95
EPS$1.95
Book Value$19.80
P/B Ratio2.40
NI Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 16.1B
Revenue
5.2B
FY19
4.7B
FY20
4.9B
FY21
5.9B
FY22
5.5B
FY23
5.5B
FY24
6.6B
FY25
Net Income
383M
FY19
—
FY20
585M
FY21
804M
FY22
714M
FY23
760M
FY24
930M
FY25
NI 52-Week Range
$36.12
$47.56
50-Day MA: $45.73200-Day MA: $42.53
Did you know?
Pays a 2.34% dividend yield.
NiSource Inc (NI) Financial Summary
NiSource Inc (NI) is a Utilities company in the Utilities - Regulated Gas industry, listed on NYSE. The stock currently trades at $47.49 with a market capitalization of $22.66B.
Key valuation metrics include a P/E ratio of 24.38, price-to-book ratio of 2.40, and EPS of $1.95. The company reports a profit margin of 14.0% and return on equity of 9.8%.
NI Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $22.66B |
| P/E Ratio | 24.38 |
| EPS | $1.95 |
| P/B Ratio | 2.40 |
| P/S Ratio | 3.41 |
| EV/EBITDA | 13.18 |
| Dividend Yield | 2.34% |
| Profit Margin | 14.0% |
| Return on Equity | 9.8% |
| Debt/Equity | 1.72 |
NI Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $5.21B | $383.10M |
| FY20 | $4.68B | $-17.60M |
| FY21 | $4.90B | $584.90M |
| FY22 | $5.85B | $804.10M |
| FY23 | $5.51B | $714.30M |
| FY24 | $5.46B | $760.40M |
| FY25 | $6.64B | $929.50M |
NiSource Inc (NI) Valuation
Based on GoodMoat's DCF model, NiSource Inc has a fair value estimate of $34.93. At the current price of $47.49, the stock appears 36.0% overvalued relative to our intrinsic value estimate.
NI Quality Indicators
NiSource Inc maintains a profit margin of 14.0% and an operating margin of 27.6%. Return on equity stands at 9.8%. The current ratio is 0.69. Debt-to-equity ratio is 1.72.
About NiSource Inc
NiSource Inc. is one of the largest fully-regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The mission of our approximately 7,700 employees is to deliver safe, reliable energy that drives value to our customers. NiSource is a member of the Dow Jones Sustainability - North America Index and is on Forbes lists of America’s Best Employers for Women and Diversity.
NI Free Cash Flow
NiSource Inc generated $-793.80M in trailing twelve-month free cash flow, representing an FCF yield of -3.50%. This low FCF yield may reflect heavy reinvestment or growth spending.
NI Shares Outstanding
NiSource Inc has 0.48 billion shares outstanding at a share price of $47.49, giving it a market capitalization of $22.66B.
NI Recent Insider Trades
Recent insider transactions at NiSource Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Gode Gunnar (SVP Chief Accting&Tax Officer) | SELL | 2,175 | $100050.00 |
| Anderson Shawn (EVP & CFO) | SELL | 12,500 | $562625.00 |