NYSE:NI

Stock Analysis Report

Executive Summary

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States.

Snowflake

Fundamentals

Moderate growth potential unattractive dividend payer.


Similar Companies

Share Price & News

How has NiSource's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

NI

2.1%

US Integrated Utilities

-0.6%

US Market


1 Year Return

15.4%

NI

19.5%

US Integrated Utilities

0.7%

US Market

NI underperformed the Integrated Utilities industry which returned 19.5% over the past year.

NI outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

NIIndustryMarket
7 Day1.5%2.1%-0.6%
30 Day-0.5%3.2%2.9%
90 Day0.4%3.3%1.3%
1 Year18.8%15.4%23.7%19.5%2.9%0.7%
3 Year28.3%17.4%38.4%24.4%44.6%35.2%
5 Year124.7%-23.6%81.4%45.7%61.9%44.2%

Price Volatility Vs. Market

How volatile is NiSource's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NiSource undervalued based on future cash flows and its price relative to the stock market?

88.52x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

NiSource's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

NiSource's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

NiSource is overvalued based on earnings compared to the US Integrated Utilities industry average.

NiSource is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

NiSource is poor value based on expected growth next year.


Price Based on Value of Assets

NiSource is good value based on assets compared to the US Integrated Utilities industry average.


Next Steps

Future Growth

How is NiSource expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

31.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NiSource's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

NiSource's earnings are expected to grow significantly at over 20% yearly.

NiSource's revenue growth is positive but not above the United States of America market average.

NiSource's earnings growth is expected to exceed the United States of America market average.

NiSource's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

NiSource is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has NiSource performed over the past 5 years?

-25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NiSource's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

NiSource's 1-year earnings growth is negative, it can't be compared to the 5-year average.

NiSource's 1-year earnings growth is negative, it can't be compared to the US Integrated Utilities industry average.


Return on Equity

NiSource has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

NiSource used its assets less efficiently than the US Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if NiSource improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is NiSource's financial position?


Financial Position Analysis

NiSource's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

NiSource's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

NiSource's level of debt (151.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (153.9% vs 151.6% today).

Debt is not well covered by operating cash flow (7.2%, less than 20% of total debt).

Unable to confirm if the interest payments on NiSource's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is NiSource's current dividend yield, its reliability and sustainability?

2.92%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase NiSource before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

NiSource's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

NiSource's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

What is the CEO of NiSource's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Joe Hamrock (55yo)

4.2yrs

Tenure

US$5,778,515

Compensation

Mr. Joseph J. Hamrock, also known as Joe, has been the Chief Executive Officer and President of NiSource Inc. since July 1, 2015. Mr. Hamrock serves as the Director at OhioHealth Corporation. Mr. Hamrock s ...


CEO Compensation Analysis

Joe's remuneration is lower than average for companies of similar size in United States of America.

Joe's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

54.5yo

Average Age

The tenure for the NiSource management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

59.5yo

Average Age

The tenure for the NiSource board of directors is about average.


Insider Trading

NiSource individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$174,08415 Aug 19
Michael Jesanis
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,000
Max PriceUS$29.01
SellUS$280,40707 Aug 19
Donald Brown
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceUS$28.05
SellUS$1,186,16306 Aug 19
Pablo Vegas
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Gas Utilities
Shares39,618
Max PriceUS$29.94
SellUS$357,36006 Aug 19
Joseph Mulpas
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares12,000
Max PriceUS$29.78
SellUS$659,12006 Aug 19
Carrie Hightman
EntityIndividual
Role
Chief Legal Officer
Executive VP & Chief Legal Officer
Shares22,000
Max PriceUS$29.96
SellUS$119,84006 Aug 19
Michael Jesanis
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceUS$29.96
SellUS$404,46006 Aug 19
Peter Disser
EntityIndividual
Shares13,500
Max PriceUS$29.96
SellUS$1,178,21006 Aug 19
Violet Sistovaris
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Northern Indiana Public Service Company
Shares40,405
Max PriceUS$29.16

Ownership Breakdown


Management Team

  • Joe Hamrock (55yo)

    President

    • Tenure: 4.2yrs
    • Compensation: US$5.78m
  • Violet Sistovaris (57yo)

    Executive VP & President of Northern Indiana Public Service Company

    • Tenure: 4.2yrs
    • Compensation: US$1.43m
  • Randy Hulen (56yo)

    Vice President of Investor Relations & Treasurer

    • Tenure: 0yrs
  • Carrie Hightman (62yo)

    Executive VP & Chief Legal Officer

    • Tenure: 11.8yrs
    • Compensation: US$1.39m
  • Pablo Vegas (46yo)

    Executive VP & President of Gas Utilities

    • Tenure: 3.3yrs
    • Compensation: US$1.60m
  • Joe Mulpas (48yo)

    VP & Chief Accounting Officer

    • Tenure: 5.3yrs
  • Donald Brown (47yo)

    Executive VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$1.64m
  • Mike Banas

    Director of Corporate Communications

    • Tenure: 0yrs
  • Suzanne Surface (54yo)

    Chief Services Officer

    • Tenure: 0.7yrs
  • Ken Keener

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.08yrs

Board Members

  • Peter Altabef (59yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$255.32k
  • Carolyn Woo (65yo)

    Director

    • Tenure: 21.7yrs
    • Compensation: US$261.86k
  • Kevin Kabat (62yo)

    Independent Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: US$322.32k
  • Mike Jesanis (62yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$262.36k
  • Deb Henretta (58yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$242.36k
  • Joe Hamrock (55yo)

    President

    • Tenure: 4.2yrs
    • Compensation: US$5.78m
  • Theo Bunting (60yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$124.14k
  • Eric Butler (58yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$237.36k
  • Wayne DeVeydt (49yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$232.36k
  • Aris Candris (67yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$262.36k

Company Information

NiSource Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NiSource Inc.
  • Ticker: NI
  • Exchange: NYSE
  • Founded: 1912
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$11.006b
  • Shares outstanding: 373.35m
  • Website: https://www.nisource.com

Number of Employees


Location

  • NiSource Inc.
  • 801 East 86th Avenue
  • Merrillville
  • Indiana
  • 46410
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
NOUDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0K87LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
NI.PRBNYSE (New York Stock Exchange)6.5% DEPSHS PFDBUSUSDNov 2018

Biography

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. The company operates in two segments, Gas Distribution Operations and Electr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:40
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.