Nisource (NI) AI Stock Analysis

• Market Cap: $18.56B
• Dividend Yield: 2.79%
• Average Volume (3M): 4.14M
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.40
• Revenue Growth: 13.08%
• EPS Growth: 17.47%
• Country: US
• Employees: 7,687
• Sector: Utilities
• Sector Strength: 80
• Industry: Regulated Gas
• EPS (TTM): 0.98
• Shares Outstanding: 470,702,900
• 10 Day Avg. Volume: 3,104,794
• 30 Day Avg. Volume: 4,137,146
• PEG Ratio: -10.27
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.57
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 11.14
• Enterprise Value/Ebitda: 3.36
• 1Y Price Target: $43.30
• Price Target Upside: 11.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: $44.00 ▲(12.85%Upside)

NiSource's overall score reflects strong financial performance and positive earnings call insights, which are the most significant factors. Technical analysis and valuation are neutral, indicating a balanced outlook. Attention to cash flow management and regulatory challenges are key areas to monitor for future performance.

Positive Factors

Earnings Growth

NI continues to target 8-10% rate base growth supporting 6-8% EPS growth while maintaining FFO/Debt in the 14-16% range.

Regulatory Support

Regulatory/policy treatment is viewed as supportive, with potential approval of the IN Genco & SB 103 seen as incremental positive data points on the business-friendly nature of the company’s largest jurisdictions.

Revenue Opportunities

Indiana load growth related to data centers represents considerable upside.

Negative Factors

Earnings Impact

Every $1B of CIAC used would reduce EPS accretion by $0.03 or 0.8% to EPS under a $5B capex scenario.

Share Dilution Concerns

The more CIAC used, the less EPS-accretive the hyperscaler becomes and the greater the NOL reduction.

Nisource Business Overview & Revenue Model

Company Description

NiSource Inc. (NI) is a prominent energy holding company headquartered in Merrillville, Indiana. The company is primarily engaged in the regulated utility sector, providing natural gas and electricity services to millions of customers across seven U.S. states. NiSource's core services include the distribution and transmission of natural gas, as well as electricity generation, transmission, and distribution. Through its subsidiaries, NiSource aims to deliver reliable, safe, and environmentally sustainable energy solutions to residential, commercial, and industrial consumers.

How the Company Makes Money

NiSource generates revenue primarily through its regulated utility operations. The company makes money by charging customers for the natural gas and electricity services it provides. This includes fixed charges for connection and service availability, as well as variable charges based on the volume of energy consumed. Additionally, NiSource benefits from regulatory frameworks that allow it to recover costs and earn a reasonable return on its investments in infrastructure, maintenance, and service improvements. The company's revenue streams are also influenced by weather conditions, energy prices, and regulatory decisions. Partnerships with local governments and investments in renewable energy and infrastructure modernization further contribute to NiSource's earnings by enhancing operational efficiency and customer satisfaction.

Nisource Financial Statement Overview

Summary

Nisource demonstrates stable profitability with improving net profit margins and robust operational efficiency. However, concerns exist due to negative free cash flow trends and a significant decrease in total assets for 2024, necessitating further scrutiny.

Income Statement

Nisource has demonstrated a stable income profile with improving net profit margins from 6.9% in 2019 to 13.9% in 2024. Despite a slight decline in revenue over the past year, the company has maintained a consistent gross profit margin around 70% over the years. This indicates a strong ability to manage costs effectively. The EBIT and EBITDA margins are also robust, signifying operational efficiency.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.33 in 2024, a significant improvement from previous years. The equity ratio has strengthened over time, reaching 89% in 2024, indicating a solid capital structure. However, the total assets have decreased significantly in 2024 due to changes in reporting, which could be a cause for concern if not clarified.

Cash Flow

Cash flow analysis reveals some challenges, particularly with free cash flow, which has fluctuated negatively over the years. Although operating cash flow has shown stability, the free cash flow remains negative, highlighting the need for better capital expenditure management. The operating cash flow to net income ratio was unavailable for 2024, limiting complete cash flow assessment.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.46B	5.51B	5.85B	4.90B	4.68B
	Gross Profit
2.81B	2.49B	2.25B	2.05B	1.99B
	EBIT
1.46B	1.30B	1.27B	1.01B	976.30M
	EBITDA
2.56B	2.21B	2.14B	1.80B	1.07B
	Net Income Common Stockholders
760.40M	714.30M	804.10M	584.90M	-14.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
156.60M	2.25B	40.80M	84.20M	116.50M
	Total Assets
31.79B	31.08B	26.74B	24.16B	22.04B
	Total Debt
13.96B	14.13B	11.66B	9.80B	9.75B
	Net Debt
13.80B	11.88B	11.62B	9.72B	9.63B
	Total Liabilities
21.12B	20.94B	18.83B	16.88B	16.20B
	Stockholders Equity
8.68B	8.27B	7.58B	6.95B	5.75B
Cash Flow		Free Cash Flow
-861.50M	-710.70M	-793.70M	-620.10M	-654.10M
	Operating Cash Flow
1.78B	1.94B	1.41B	1.22B	1.10B
	Investing Cash Flow
-3.11B	-3.57B	-2.57B	-2.20B	-879.10M
	Financing Cash Flow
-651.00M	3.84B	1.14B	956.30M	-247.70M

Nisource Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 38.99 is below the 20-day moving average (MA) of 39.02, above the 50-day MA of 38.98, and above the 200-day MA of 36.60, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 49.09 is Neutral, neither overbought nor oversold. The STOCH value of 55.72 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	76 Outperform	$24.56B	21.58	9.18%	2.21%	10.60%	8.55%
UGI	76 Outperform	$7.60B	14.55	10.84%	4.23%	-4.30%	―
NI	74 Outperform	$18.56B	21.24	10.34%	2.79%	13.08%	17.47%
SR	71 Outperform	$4.33B	18.16	7.30%	4.20%	-7.10%	2.54%
NJR	71 Outperform	$4.49B	10.82	17.83%	3.95%	20.30%	63.69%
SWX	65 Neutral	$5.18B	22.92	6.49%	3.45%	-10.78%	16.27%
Sector *	64 Neutral	$8.53B	10.25	4.70%	4.38%	4.14%	-13.04%

Nisource Corporate Events

NiSource Stockholders Approve Key Proposals at Annual Meeting

At the Annual Meeting held on May 12, 2025, NiSource stockholders voted on several key proposals. All nominated directors were elected, and the advisory approval of executive compensation was passed. The appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2025 was ratified. However, a stockholder proposal to improve special shareholder meetings was not approved.

The most recent analyst rating on (NI) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Nisource stock, see the NI Stock Forecast page.