Nisource (NI) AI Stock Analysis

• Market Cap: $20.46B
• Dividend Yield: 2.61%
• Average Volume (3M): 4.64M
• Price to Earnings (P/E): 22.6
• 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: 5,812,122
• 30 Day Avg. Volume: 4,642,003
• 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: 1.87
• Enterprise Value/Revenue: 6.05
• Enterprise Value/Gross Profit: 11.96
• Enterprise Value/Ebitda: 13.19
• 1Y Price Target: $46.55
• Price Target Upside: 8.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: $46.00 ▲(7.30% Upside)

Nisource's overall stock score reflects a balanced view of its financial performance, technical indicators, valuation, and earnings call insights. The company's strong strategic initiatives and positive earnings guidance are significant positives, but high leverage and cash flow concerns weigh on the score. Technical indicators suggest a neutral to slightly positive outlook, while the valuation appears moderate.

Positive Factors

Revenue Growth

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

Strategic Investments

Large-scale investments in infrastructure enhance service capacity and reliability, positioning the company for future growth.

Positive Earnings Guidance

Strong earnings guidance reflects confidence in business prospects and supports investor trust in the company's growth trajectory.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow suggests liquidity constraints, which could hinder the company's ability to fund operations and strategic initiatives.

Increased Operating Expenses

Rising operating expenses can erode profit margins and reduce financial efficiency, affecting long-term 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 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	2.49B	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	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: Positive
• Last Price: 42.87
• 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 Positive. The current price of 42.87 is below the 20-day moving average (MA) of 42.95, above the 50-day MA of 42.03, and above the 200-day MA of 39.81, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 29.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NI.

Nisource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATO	―	$27.92B	24.02	9.05%	2.02%	12.90%	7.70%
NJR	―	$4.51B	10.96	18.03%	4.07%	21.88%	71.35%
SR	―	$5.22B	19.11	8.37%	3.55%	-6.65%	11.47%
SWX	―	$5.83B	30.15	5.41%	3.06%	-10.07%	5.98%
NI	―	$20.46B	22.64	10.23%	2.61%	19.62%	12.87%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
UGI	―	$7.24B	17.76	8.75%	4.45%	-0.52%	-39.42%

Nisource Corporate Events

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.

The most recent analyst rating on (NI) stock is a Hold with a $47.00 price target. To see the full list of analyst forecasts on Nisource stock, see the NI Stock Forecast page.

NiSource Earnings Call Highlights Strategic Growth and Guidance

The recent earnings call for NiSource was marked by a generally positive sentiment, underscored by strategic advancements and optimistic financial guidance. Despite facing challenges such as increased operating expenses and the impact of long-term debt, the company showcased significant investments and growth initiatives that are expected to drive future success.

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.