NiSource Inc. (NI)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach regulated utilities as bond-like businesses: predictable demand, regulated returns, and heavy capital needs. NiSource fits that description. It serves natural gas and electric customers through Columbia and NIPSCO, and its beta of 0.54 suggests the shares have been less volatile than the market. The filed record shows fiscal year 2025 revenue of $6.5B and net income of $929.5M, with diluted EPS of $1.95, up from diluted EPS of $1.62 in fiscal year 2024 and $1.48 in fiscal year 2023. That is decent regulated growth, which is why FairStock's Lynch category calls it a STALWART, based on 12.3% annual profit growth over four years and 8.4% revenue growth. But the balance sheet and cash flow give me pause. Debt-to-equity is 1.47; FairStock calculates ROE at 8.55%, ROCE at 3.24%, and trailing free cash flow at negative $1.5B, a -7.3% FCF yield. The latest filed quarter, fiscal Q2 2026, the quarter ended 2026-06-30, had revenue of $1.3B, net income of $45.5M, and diluted EPS of $0.09, showing how seasonal and thin quarterly earnings can be. At the 2026-10-13 close of $41.49, FairStock calculates a P/E of 22.07, P/B of 2.08, EV/EBITDA of 11.63, and a Graham Number of $29.06, leaving a negative 42.77% margin of safety. Piotroski is 3/9, Altman Z is 0.44, and the FairStock Score is 40/100. I want a wider discount for the leverage and cash burn before calling this a bargain, even if the 2.96% dividend yield and regulated assets deserve respect.

In plain English: NiSource is a regulated utility that delivers natural gas and electricity to homes and businesses. The business is steady but carries a lot of debt and currently spends more cash than it brings in; its most recent reported quarter had only a small profit. At $41.49 on 2026-10-13, the shares look expensive compared with the company's earnings, net assets, and cash generation, so the price does not appear to offer a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer