NiSource
Market Cap
US$10.8b
Last Updated
2020/01/20 23:42 UTC
Data Sources
Company Financials +
Executive Summary
NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Second-rate dividend payer and overvalued.
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
Stable Share Price: NI has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.2%
NI
3.4%
US Integrated Utilities
1.7%
US Market
1 Year Return
9.0%
NI
21.8%
US Integrated Utilities
23.6%
US Market
Return vs Industry: NI underperformed the US Integrated Utilities industry which returned 19.5% over the past year.
Return vs Market: NI underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| NI | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.2% | 3.4% | 1.7% |
| 30 Day | 4.6% | 2.5% | 3.5% |
| 90 Day | 2.7% | 1.7% | 11.7% |
| 1 Year | 12.2%9.0% | 26.0%21.8% | 26.2%23.6% |
| 3 Year | 43.0%30.8% | 46.1%31.4% | 53.2%43.3% |
| 5 Year | 94.9%-33.8% | 59.9%28.2% | 75.5%56.1% |
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
2 weeks ago | Simply Wall St
What Kind Of Investor Owns Most Of NiSource Inc. (NYSE:NI)?1 month ago | Simply Wall St
Here's Why We Don't Think NiSource's (NYSE:NI) Statutory Earnings Reflect Its Underlying Earnings Potential1 month ago | Simply Wall St
How Do NiSource Inc.’s (NYSE:NI) Returns On Capital Compare To Peers?Valuation
Is NiSource undervalued compared to its fair value and its price relative to the market?
23.47x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NI ($28.18) is trading above our estimate of fair value ($20.58)
Significantly Below Fair Value: NI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NI is poor value based on its PE Ratio (22.8x) compared to the Integrated Utilities industry average (21x).
PE vs Market: NI is poor value based on its PE Ratio (22.8x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: NI is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: NI is good value based on its PB Ratio (2.2x) compared to the US Integrated Utilities industry average (2.2x).
Next Steps
Future Growth
How is NiSource forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
8.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NI's forecast earnings growth (11.9% per year) is above the savings rate (1.7%).
Earnings vs Market: NI's earnings (11.9% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: NI's earnings are forecast to grow, but not significantly.
Revenue vs Market: NI's revenue (3.8% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: NI's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NI's Return on Equity is forecast to be low in 3 years time (8.8%).
Next Steps
Past Performance
How has NiSource performed over the past 5 years?
-13.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NI has a large one-off gain of $534.3M impacting its September 30 2019 financial results.
Growing Profit Margin: NI became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: NI's earnings have declined by -13.6% per year over the past 5 years.
Accelerating Growth: NI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Integrated Utilities industry (-9.8%).
Return on Equity
High ROE: NI's Return on Equity (8.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is NiSource's financial position?
Financial Position Analysis
Short Term Liabilities: NI's short term assets ($1.4B) do not cover its short term liabilities ($3.3B).
Long Term Liabilities: NI's short term assets ($1.4B) do not cover its long term liabilities ($12.9B).
Debt to Equity History and Analysis
Debt Level: NI's debt to equity ratio (160.8%) is considered high.
Reducing Debt: NI's debt to equity ratio has reduced from 161.9% to 160.8% over the past 5 years.
Debt Coverage: NI's debt is not well covered by operating cash flow (9%).
Interest Coverage: NI's interest payments on its debt are not well covered by EBIT (0.8x coverage).
Balance Sheet
Inventory Level: NI has a high level of physical assets or inventory.
Debt Coverage by Assets: NI's debt is not covered by short term assets (assets are 0.1x debt).
Next Steps
Dividend
What is NiSource's current dividend yield, its reliability and sustainability?
2.75%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NI's dividend (2.84%) is higher than the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: NI's dividend (2.84%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: NI's dividend payments have been volatile in the past 10 years.
Growing Dividend: NI's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (64.7%), NI's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NI's dividends in 3 years are forecast to be covered by earnings (60.5% payout ratio).
Next Steps
Management
What is the CEO of NiSource's salary, the management and board of directors tenure and is there insider trading?
4.5yrs
Average management tenure
CEO
Joe Hamrock (55yo)
4.5yrs
Tenure
US$5,778,515
Compensation
Mr. Joseph J. Hamrock, also known as Joe, has been the Chief Executive Officer and President of NiSource Inc. since July 1, 2015. Mr. Hamrock serves as the Director at OhioHealth Corporation. Mr. Hamrock s ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD5.78M) is below average for companies of similar size in the US market ($USD10.76M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.5yrs
Average Tenure
54.5yo
Average Age
Experienced Management: NI's management team is considered experienced (4.5 years average tenure).
Board Age and Tenure
4.2yrs
Average Tenure
59.5yo
Average Age
Experienced Board: NI's board of directors are considered experienced (4.2 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 6,000 |
| Max Price | US$29.01 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 10,000 |
| Max Price | US$28.05 |
| Entity | Individual |
| Role | Senior Key Executive Executive VP & President of Gas Utilities |
| Shares | 39,618 |
| Max Price | US$29.94 |
| Entity | Individual |
| Role | Chief Accounting Officer VP, Chief Accounting Officer & Controller |
| Shares | 12,000 |
| Max Price | US$29.78 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP & Chief Legal Officer |
| Shares | 22,000 |
| Max Price | US$29.96 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,000 |
| Max Price | US$29.96 |
| Entity | Individual |
| Shares | 13,500 |
| Max Price | US$29.96 |
| Entity | Individual |
| Role | Senior Key Executive Executive VP & President of Northern Indiana Public Service Company |
| Shares | 40,405 |
| Max Price | US$29.16 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7%.
Management Team
Joe Hamrock (55yo)
President
- Tenure: 4.5yrs
- Compensation: US$5.78m
Violet Sistovaris (57yo)
Executive VP & President of Northern Indiana Public Service Company
- Tenure: 4.5yrs
- Compensation: US$1.43m
Randy Hulen (56yo)
VP of Investor Relations & Treasurer
Carrie Hightman (62yo)
Executive VP & Chief Legal Officer
- Tenure: 12.1yrs
- Compensation: US$1.39m
Pablo Vegas (46yo)
Executive VP & President of Gas Utilities
- Tenure: 3.7yrs
- Compensation: US$1.60m
Joe Mulpas (48yo)
VP, Chief Accounting Officer & Controller
- Tenure: 5.7yrs
Donald Brown (47yo)
Executive VP & CFO
- Tenure: 4.5yrs
- Compensation: US$1.64m
Mike Banas
Director of Corporate Communications
Suzanne Surface (54yo)
Chief Services Officer
- Tenure: 1yrs
Ken Keener
Senior VP & Chief Human Resources Officer
- Tenure: 0.4yrs
Board Members
Peter Altabef (59yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$255.32k
Carolyn Woo (65yo)
Independent Director
- Tenure: 22yrs
- Compensation: US$261.86k
Kevin Kabat (62yo)
Independent Chairman of the Board
- Tenure: 0.7yrs
- Compensation: US$322.32k
Mike Jesanis (62yo)
Independent Director
- Tenure: 11.7yrs
- Compensation: US$262.36k
Deb Henretta (58yo)
Independent Director
- Tenure: 5yrs
- Compensation: US$242.36k
Joe Hamrock (55yo)
President
- Tenure: 4.5yrs
- Compensation: US$5.78m
Theo Bunting (60yo)
Director
- Tenure: 1.3yrs
- Compensation: US$124.14k
Eric Butler (58yo)
Director
- Tenure: 2.5yrs
- Compensation: US$237.36k
Wayne DeVeydt (49yo)
Independent Director
- Tenure: 3.8yrs
- Compensation: US$232.36k
Aris Candris (67yo)
Independent Director
- Tenure: 7.7yrs
- 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$10.848b
- Shares outstanding: 373.54m
- Website: https://www.nisource.com
Number of Employees
Location
- NiSource Inc.
- 801 East 86th Avenue
- Merrillville
- Indiana
- 46410
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NI | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| NOU | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0K87 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| NI.PRB | NYSE (New York Stock Exchange) | 6.5% DEPSHS PFDB | US | USD | Nov 2018 | |
| N1IS34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
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 Electric Operations. It provides natural gas service and transportation for residential, commercial, and industrial customers; generates, transmits, and distributes electricity; and wholesale and transmission transaction services. The company owns and operates 2 coal-fired electric generating stations with a capacity of 2,080 megawatts (MW); combined cycle gas turbine with a capacity of 571 MW; 3 gas-fired generating units with a capacity of 186 MW; and 2 hydroelectric generating plants with a capacity of 16 MW. It serves approximately 3.5 million natural gas customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana, and Massachusetts; and 472,000 electricity customers in the northern part of Indiana. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1912 and is headquartered in Merrillville, Indiana.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/20 23:42 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.