NiSource (NI): Valuation Check After Expanded $2.5 Billion Credit Facility Boosts Financial Flexibility

NiSource (NI) has secured a larger, longer-dated revolving credit facility, increasing total capacity to $2.5 billion and extending maturity to 2030, which enhances its financial flexibility.

See our latest analysis for NiSource.

Against that backdrop, NiSource’s 14.16% year to date share price return and 5 year total shareholder return of 122.67% suggest momentum is gradually building as investors reward steadier growth and reduced perceived balance sheet risk.

If this kind of quietly improving utility story appeals to you, it may be a moment to explore other regulated and infrastructure plays via healthcare stocks as a potential source of resilient opportunities.

With shares up strongly and analysts still seeing double digit upside to their targets, investors face a familiar dilemma: is NiSource quietly undervalued here, or is the market already baking in its next leg of growth?

Most Popular Narrative: 10.5% Undervalued

With NiSource last closing at $41.51 versus a narrative fair value near $46.36, followers see meaningful upside grounded in long range earnings power.

Strong visibility into multi-year, rate-based capital expenditure ($19.4B base plan, plus $2B+ in upside/incremental projects) positions NiSource for 6 to 8% annual EPS growth and compound growth in regulated revenue.

Read the complete narrative.

Want to see how a classic regulated utility story supports a richer earnings multiple, faster margin expansion, and higher long run revenue than today implies? The full narrative spells out the load growth, capital plan, and profitability assumptions that power this fair value case, and how they could reshape NiSource’s earnings profile.

Result: Fair Value of $46.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upbeat outlook could be challenged if regulatory approvals lag or if long term gas demand erodes faster than NiSource currently anticipates.

Find out about the key risks to this NiSource narrative.

Another Angle on Value

Our SWS DCF model paints a cooler picture, suggesting NiSource is trading above an estimated fair value of $34.19 per share, which implies the stock may be overvalued. If the cash flows are right, is today’s price already assuming too much growth and regulatory goodwill?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out NiSource for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 918 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own NiSource Narrative

If you see the story differently, or just prefer to dig into the numbers yourself, you can build a tailored view in minutes: Do it your way.

A great starting point for your NiSource research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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