Nisource (NI) AI Stock Analysis

• Market Cap: $20.43B
• Dividend Yield: 2.6%
• Average Volume (3M): 4.39M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.31
• Revenue Growth: 16.98%
• EPS Growth: 12.45%
• Country: US
• Employees: 7,687
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.19
• Shares Outstanding: 470,855,000
• 10 Day Avg. Volume: 3,730,877
• 30 Day Avg. Volume: 4,394,091
• PEG Ratio: 8.73
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 3.06
• P/FCF Ratio: -19.38
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $46.00
• Price Target Upside: 8.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 66 Neutral
• Price Target: $46.00 ▲(8.34% Upside)

Nisource's overall stock score is driven by strong earnings call insights and solid financial performance, despite challenges with leverage and cash flow. Technical analysis and valuation present moderate risks, but strategic growth initiatives and positive guidance support a stable outlook.

Positive Factors

Strategic Growth Initiatives

The data center investment represents a significant capital commitment that supports long-term growth and enhances grid resilience, aligning with sustainable energy trends.

Positive Earnings Guidance

Strong earnings guidance reflects confidence in operational performance and strategic initiatives, supporting investor confidence and potential future profitability.

Regulatory Approval for GenCo Model

Regulatory approval for GenCo enables NiSource to expand its service offerings and meet growing demand, enhancing its competitive position in the utility sector.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in rising interest rate environments, potentially impacting long-term financial health.

Negative Free Cash Flow

Negative free cash flow indicates that the company may struggle to fund operations and investments without external financing, posing risks to sustainable growth.

Increased Operating Expenses

Rising operating expenses can erode profit margins and reduce the effectiveness of revenue growth, challenging the company's ability to maintain profitability.

Nisource Business Overview & Revenue Model

Company Description

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates through two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 853,000 customers in northern Indiana, as well as approximately 2.4 million residential, commercial, and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It operates approximately 54,600 miles of distribution main pipelines, as well as associated individual customer service lines; and 1,000 miles of transmission main pipelines. The company generates, transmits, and distributes electricity to approximately 483,000 customers in 20 counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations with a capacity of 722 megawatts (MW) in Wheatfield and 455 MW in Michigan City; combined cycle gas turbine with a capacity of 563 MW in West Terre Haute; natural gas generating units with a capacity of 155 MW in Wheatfield; hydro generating plants with a capacity of 9 MW in Carroll County and 7 MW in White County; and wind generating units with a capacity of 102 MW and 302 MW in White County, 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 1847 and is headquartered in Merrillville, Indiana.

How the Company Makes Money

NiSource earns revenue primarily through the distribution of natural gas and electricity to residential, commercial, and industrial customers. The company operates under a regulated utility model, meaning its rates and earnings are overseen by state public utility commissions. Key revenue streams include residential and commercial utility billing, which are influenced by the volume of gas and electricity consumed. Additionally, NiSource engages in infrastructure investments that enhance its service delivery and reliability, which can lead to incremental revenue growth. The company may also benefit from partnerships with local and state governments, energy efficiency programs, and renewable energy initiatives that align with regulatory frameworks and customer demand for sustainable energy solutions.

Nisource Financial Statement Overview

Summary

Nisource shows strong operational efficiency with robust margins and revenue growth. However, high leverage and negative free cash flow pose risks to financial flexibility.

Income Statement

Nisource's income statement shows a solid performance with a consistent increase in revenue over the TTM period, achieving a revenue growth rate of 3.34%. The company maintains healthy margins, with a gross profit margin of 50.17% and a net profit margin of 14.46%. EBIT and EBITDA margins are strong at 27.83% and 45.66%, respectively, indicating efficient operations. However, the revenue growth has been inconsistent in previous years, which could pose a risk if not stabilized.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.77, indicating significant leverage, which could be a potential risk if interest rates rise. Return on equity is moderate at 10.19%, suggesting decent profitability for shareholders. The equity ratio stands at 26.09%, showing a balanced asset structure but highlighting the reliance on debt financing.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow and a declining free cash flow growth rate of -350.7% in the TTM period. The operating cash flow to net income ratio is 0.60, indicating that operating cash flow is not fully covering net income. The negative free cash flow to net income ratio of -31.90% suggests that the company is not generating sufficient free cash flow relative to its net income, which could impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.33B	5.46B	5.51B	5.85B	4.90B	4.68B
Gross Profit	3.20B	2.81B	2.49B	2.25B	2.05B	1.99B
EBITDA	2.90B	2.57B	2.22B	2.15B	1.80B	1.07B
Net Income	895.60M	760.40M	714.30M	804.10M	584.90M	-17.60M
Balance Sheet
Total Assets	0.00	31.79B	31.08B	26.74B	24.16B	22.04B
Cash, Cash Equivalents and Short-Term Investments	0.00	156.60M	2.25B	40.80M	84.20M	116.50M
Total Debt	14.50B	13.96B	14.13B	11.53B	9.99B	9.95B
Total Liabilities	5.94B	21.12B	20.94B	18.83B	16.88B	16.20B
Stockholders Equity	9.12B	8.68B	8.27B	7.58B	6.95B	5.75B
Cash Flow
Free Cash Flow	-362.90M	-861.50M	-710.70M	-793.70M	-620.10M	-654.10M
Operating Cash Flow	1.72B	1.78B	1.94B	1.41B	1.22B	1.10B
Investing Cash Flow	-3.36B	-3.21B	-3.57B	-2.57B	-2.20B	-879.10M
Financing Cash Flow	1.85B	-651.00M	3.84B	1.14B	956.30M	-247.70M

Nisource Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NI, the sentiment is Neutral. The current price of 42.46 is below the 20-day moving average (MA) of 43.44, above the 50-day MA of 42.31, and above the 200-day MA of 39.96, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 33.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NI.

Nisource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATO	―	$27.56B	24.10	9.05%	2.03%	12.90%	7.70%
NJR	―	$4.45B	11.10	18.03%	4.12%	21.88%	71.35%
SR	―	$5.13B	19.05	8.37%	3.56%	-6.65%	11.47%
SWX	―	$5.80B	30.00	5.41%	3.08%	-10.07%	5.98%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NI	―	$20.43B	23.05	10.56%	2.60%	16.98%	12.45%
UGI	―	$7.14B	17.71	8.75%	4.47%	-0.52%	-39.42%

Nisource Corporate Events

NiSource Reports Steady Growth and Strategic Investments

NiSource Inc. is a prominent utility company in the United States, providing natural gas and electric services to millions of customers across six states through its Columbia Gas and NIPSCO brands. Known for its commitment to sustainability and innovation, NiSource is a key player in the energy sector.

NiSource Secures Major Data Center Contract

On September 18, 2025, NIPSCO, a subsidiary of NiSource Inc., entered into a contract to supply electric service to a major data center customer starting in 2027, with capacity increasing until 2032. This agreement, pending regulatory approval, involves constructing new generation facilities and could impact retail customer savings and NIPSCO’s financial strategies, as the company plans to finance the project through various means including debt and equity.

The most recent analyst rating on (NI) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Nisource stock, see the NI Stock Forecast page.

NiSource Reports Strong Q2 Earnings Growth

NiSource Inc. is a major fully-regulated utility company in the United States, providing natural gas and electric services to millions of customers across six states through its Columbia Gas and NIPSCO brands. The company is known for its commitment to sustainability and diversity, being recognized on the Dow Jones Sustainability – North America Index and Forbes lists for its efforts.

NiSource Earnings Call: Strong Performance Amid Uncertainties

NiSource’s recent earnings call conveyed a strong overall sentiment, highlighting robust financial performance and effective operational strategies. The company demonstrated significant regulatory approvals, positioning it well for future endeavors. However, concerns were raised regarding uncertainties in data center development timelines, policy challenges affecting coal plant retirements, and undefined financing strategies for GenCo.