Last Updated: 19 Sep 2024
Executive Summary
NiSource Inc. (NI) is a leading fully regulated utility company in the United States. The company has a strong financial position with a market capitalization of $15.28 billion and an EBITDA of $2.28 billion. NI has a trailing P/E ratio of 20.9 and a forward P/E ratio of 18.42. The stock is currently trading at $34.07, which is below the analyst target price of $34.16.
Company Overview
NiSource Inc. is headquartered in Merrillville, Indiana. The company provides electric, gas, and water services to approximately 4 million customers in seven states. NI has a diversified portfolio of generation assets, including coal, natural gas, and renewable energy sources. The company also has a strong transmission and distribution network.
Fundamental Analysis
NI has a strong financial performance. The company's revenue has grown at a CAGR of 3.5% over the past five years. NI's net income has also grown at a CAGR of 4.2% over the same period. The company's profit margin is 14.8% and its operating margin is 22.1%. NI has a strong balance sheet with a debt-to-equity ratio of 0.45. The company's return on assets is 3.07% and its return on equity is 9.13%.
Technical Analysis
NI's stock price has been in a downtrend since reaching a high of $34.49 in July 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 35.4, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for NI is mixed. The company's financial performance is strong, but the stock price is in a downtrend. The RSI is oversold, which suggests that the stock could be due for a bounce. However, the overall market is also in a downtrend, which could put pressure on NI's stock price.
Long Term Outlook
The long-term outlook for NI is positive. The company has a strong financial position and a diversified portfolio of generation assets. NI is also well-positioned to benefit from the growing demand for clean energy. The company's stock price is currently trading at a discount to its analyst target price, which suggests that there is potential for upside.
Analyst Recommendations
The majority of analysts have a buy rating on NI. The average analyst target price is $34.16, which is 0.26% above the current stock price.
