Nisource (NI) AI Stock Analysis

• Market Cap: $19.68B
• Dividend Yield: 2.7%
• Average Volume (3M): 3.25M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.31
• Revenue Growth: 19.62%
• EPS Growth: 12.87%
• Country: US
• Employees: 7,687
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.19
• Shares Outstanding: 477,195,530
• 10 Day Avg. Volume: 3,237,851
• 30 Day Avg. Volume: 3,247,419
• 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: 1.94
• Enterprise Value/Revenue: 6.05
• Enterprise Value/Gross Profit: 11.96
• Enterprise Value/Ebitda: 13.19
• 1Y Price Target: $47.88
• Price Target Upside: 15.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.88
• Revenue Forecast (FY): $6.14B

• Rating: 64 Neutral
• Price Target: $44.00 ▲(6.00% Upside)

Nisource's overall score reflects solid financial performance and strategic growth initiatives, tempered by technical weakness and leverage concerns. The positive earnings call and recent corporate events bolster the outlook, but liquidity and debt management remain key areas to watch.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term financial health.

Infrastructure Investment

Significant infrastructure investments enhance service capabilities and support sustainable growth, aligning with long-term strategic goals.

Positive Earnings Guidance

Strong earnings guidance reflects confidence in future performance and strategic initiatives, indicating potential for sustained profitability.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting long-term stability and investment capacity.

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues, which could constrain growth and operational investments over time.

Increased Operating Expenses

Rising operating expenses can pressure margins and reduce profitability, challenging the company's ability to maintain cost efficiency.

Nisource Business Overview & Revenue Model

Company Description

NiSource Inc. (NI) is a leading energy holding company based in the United States, primarily focused on natural gas and electric utility services. The company operates through its subsidiaries, providing services to millions of customers across several states, with a significant presence in the Midwest and Northeast regions. NiSource's core products include the distribution of natural gas and electricity, as well as a range of energy-related services. The company is committed to delivering reliable energy solutions while investing in infrastructure improvements and sustainable energy initiatives.

How the Company Makes Money

NiSource generates revenue primarily through the provision of utility services, including the distribution of natural gas and electricity to residential, commercial, and industrial customers. The company operates under a regulated framework, which allows it to earn a return on investment by adjusting rates based on approved capital expenditures and operating costs. Key revenue streams include customer utility bills, which consist of charges for energy consumption, delivery fees, and other service-related charges. Additionally, NiSource may engage in infrastructure projects that enhance its service capabilities, leading to potential revenue growth. The company is also involved in partnerships focused on renewable energy initiatives, which can contribute to long-term revenue diversification and sustainability goals.

Nisource Financial Statement Overview

Summary

Nisource demonstrates solid revenue growth and profitability, with strong margins across the board. However, the high leverage and negative free cash flow are areas of concern that need addressing to ensure long-term financial stability. The company should focus on managing debt levels and improving cash flow to enhance its financial health.

Income Statement

Nisource has shown a steady increase in revenue with a TTM growth rate of 3.21%, indicating positive momentum. The gross profit margin is robust at 50.59%, and the net profit margin is healthy at 14.15%. EBIT and EBITDA margins are strong, reflecting efficient operations. However, past fluctuations in revenue growth rates suggest potential volatility.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.59, indicating significant leverage, which could pose risks if not managed carefully. Return on equity is moderate at 10.07%, showing decent profitability. The equity ratio stands at 26.51%, suggesting a balanced asset structure but with room for improvement in reducing leverage.

Cash Flow

Operating cash flow is strong, but free cash flow is negative, indicating challenges in covering capital expenditures. The operating cash flow to net income ratio of 0.49 suggests adequate cash generation relative to net income. However, the negative free cash flow growth rate and free cash flow to net income ratio highlight potential liquidity concerns.

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	2.48B	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	34.40B	31.79B	31.08B	26.74B	24.16B	22.04B
Cash, Cash Equivalents and Short-Term Investments	119.50M	156.60M	2.25B	40.80M	84.20M	116.50M
Total Debt	15.76B	13.96B	14.13B	11.53B	9.99B	9.95B
Total Liabilities	23.16B	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	-535.50M	-861.50M	-710.70M	-793.70M	-620.10M	-654.10M
Operating Cash Flow	2.19B	1.78B	1.94B	1.41B	1.22B	1.10B
Investing Cash Flow	-4.18B	-3.21B	-3.57B	-2.57B	-2.20B	-879.10M
Financing Cash Flow	1.96B	-651.00M	3.84B	1.14B	956.30M	-247.70M

Nisource Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.51
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 41.51 is below the 20-day moving average (MA) of 42.25, below the 50-day MA of 42.73, and above the 200-day MA of 40.52, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 39.60 is Neutral, neither overbought nor oversold. The STOCH value of 25.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NI.

Nisource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWX	74 Outperform	$5.89B	12.71	5.42%	3.04%	-23.15%	157.45%
UGI	70 Outperform	$8.22B	12.38	14.87%	3.92%	1.10%	140.04%
ATO	66 Neutral	$27.35B	22.67	9.32%	2.13%	12.91%	9.86%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NI	64 Neutral	$19.68B	21.79	10.23%	2.70%	19.62%	12.87%
SR	64 Neutral	$4.95B	19.20	8.20%	3.79%	-4.50%	2.49%
NJR	64 Neutral	$4.80B	14.30	14.62%	3.89%	13.94%	13.93%

Nisource Corporate Events

NiSource Expands Credit Facility by $650 Million

On December 11, 2025, NiSource Inc. entered into a Seventh Amended and Restated Revolving Credit Agreement, increasing its credit facility by $650 million to $2.5 billion and extending the termination date to December 11, 2030. The agreement also raised the amount available for standby letters of credit and adjusted certain financial thresholds, while eliminating provisions related to environmental, social, and governance targets, potentially impacting NiSource’s financial flexibility and strategic initiatives.

NiSource Completes $1 Billion Notes Sale

On November 7, 2025, NiSource Inc. completed the sale of $1 billion in 5.750% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2056, with interest payments starting in 2026. The proceeds from this sale are intended for general corporate purposes, including financing capital expenditures, working capital, and repaying existing debt, potentially strengthening the company’s financial position and operational capabilities.

NiSource Launches $1.5 Billion Equity Offering Program

On October 31, 2025, NiSource Inc. announced the establishment of a $1.5 billion at-the-market equity offering program through 2028, replacing a previous $900 million program. The company has entered into equity distribution agreements with multiple financial institutions to sell shares of its common stock, with proceeds intended for general corporate purposes, including financing capital expenditures and repaying existing debt.

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.