NiSource Inc (NI) Financial Statements

NiSource's financial health shows a clear divergence between top-line performance and cash generation. Revenue growth of 19.8% YoY is strong, and the 27.6% operating margin is a solid indicator of core profitability. However, several metrics fall short of the GoodMoat Quality Indicator thresholds. Most critically, the Free Cash Flow (FCF) Yield is negative at -3.6%, indicating the company is not generating surplus cash for shareholders after capital expenditures—a key red flag for value investors. The balance sheet is a significant concern, with a Debt/Equity ratio of 1.72, which is well above the framework's favourable threshold of less than 1.0x Debt/EBITDA, suggesting a leveraged financial structure. The Return on Equity (ROE) of 9.8% is also below the framework's high-quality benchmark of 15-20%. While the 14.0% profit margin and strong revenue growth are positive, the combination of negative FCF and high debt overshadows these strengths. The financial profile is typical of a capital-intensive utility in an investment phase, but it does not meet the criteria for a high-quality, cash-generative business as defined by the framework. Analysis based on data as of 2024-05-15.