📊 NI Key Takeaways
Is Nisource Inc.. (NI) a Good Investment?
NiSource exhibits growth-without-profitability dynamics with deteriorating financial fundamentals. Despite 23.5% revenue growth, net income is flat while the company generates negative free cash flow of -$362.9M, creating unsustainable capital constraints given 1.60x debt-to-equity leverage and 0.65x current ratio.
NiSource shows solid regulated-utility fundamentals: revenue grew strongly, margins remain healthy, and interest coverage suggests debt service is currently manageable. However, earnings growth quality is mixed because net income was flat, free cash flow is negative after heavy capital spending, and liquidity is tight, so the business looks stable but capital-intensive rather than clearly strengthening.
Nisource Inc.. Key Strengths (NI)
- Strong revenue growth of 23.5% year-over-year demonstrating market demand
- Excellent operating margins of 35.3% showing operational efficiency at gross level
- Positive operating cash flow of $442.3M providing some liquidity buffer
- Revenue growth of 23.5% YoY with positive diluted EPS growth of 20.4% indicates underlying scale and per-share earnings improvement
- Net margin of 14.3%, ROE of 9.8%, and interest coverage of 7.5x reflect a profitable regulated utility with acceptable debt-servicing capacity
- Operating cash flow of $2.36B provides meaningful internal funding support for ongoing operations and infrastructure investment
NI Stock Risks: Nisource Inc.. Investment Risks
- Negative free cash flow of -$362.9M indicates company is burning cash despite revenue growth; CapEx of $805.2M exceeds operating cash generation by 82%
- Critically low current ratio of 0.65x signals acute short-term liquidity stress and debt refinancing risk
- Severely depressed ROE of 5.3% and ROA of 1.4% reveal poor capital efficiency; net income flat despite 23.5% revenue growth indicates profitability is not scaling
- Elevated leverage with 1.60x debt-to-equity and $15.5B long-term debt combined with weak interest coverage of 3.3x leaves minimal margin for adverse conditions
- Free cash flow of negative $420M shows the company is not fully self-funding its capital program and may remain reliant on external financing
- Current and quick ratios of 0.69x indicate weak near-term liquidity and limited balance-sheet flexibility
- Leverage is elevated with $15.48B of long-term debt and debt-to-equity of 1.64x, which increases sensitivity to financing costs and execution risk on capital projects
Key Metrics to Watch
- Free cash flow trajectory and CapEx spending relative to operating cash generation
- Current ratio and cash position movements indicating refinancing risk
- Net margin trend to assess whether profitability will improve with higher revenues
- Interest coverage ratio as primary debt service capacity indicator
- Free cash flow trend relative to capital expenditures
- Net income growth and debt-to-equity trajectory
Nisource Inc.. (NI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NI Profit Margin, ROE & Profitability Analysis
NI vs Utilities Sector: How Nisource Inc.. Compares
How Nisource Inc.. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nisource Inc.. Stock Overvalued? NI Valuation Analysis 2026
Based on fundamental analysis, Nisource Inc.. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Nisource Inc.. Balance Sheet: NI Debt, Cash & Liquidity
NI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nisource Inc..'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.48 reflects profitable operations.
NI Revenue Growth, EPS Growth & YoY Performance
NI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.1B | $474.8M | $1.00 |
| Q3 2025 | $1.0B | $85.7M | $0.19 |
| Q2 2025 | $1.1B | $85.8M | $0.19 |
| Q1 2025 | $1.6B | $365.0M | $0.77 |
| Q3 2024 | $1.0B | $85.1M | $0.17 |
| Q2 2024 | $1.1B | $58.8M | $0.09 |
| Q1 2024 | $1.6B | $333.0M | $0.71 |
| Q3 2023 | $1.0B | $65.8M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nisource Inc.. Dividends, Buybacks & Capital Allocation
NI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nisource Inc.. (CIK: 0001111711)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NI
What is the AI rating for NI?
Nisource Inc.. (NI) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NI's key strengths?
Claude: Strong revenue growth of 23.5% year-over-year demonstrating market demand. Excellent operating margins of 35.3% showing operational efficiency at gross level. ChatGPT: Revenue growth of 23.5% YoY with positive diluted EPS growth of 20.4% indicates underlying scale and per-share earnings improvement. Net margin of 14.3%, ROE of 9.8%, and interest coverage of 7.5x reflect a profitable regulated utility with acceptable debt-servicing capacity.
What are the risks of investing in NI?
Claude: Negative free cash flow of -$362.9M indicates company is burning cash despite revenue growth; CapEx of $805.2M exceeds operating cash generation by 82%. Critically low current ratio of 0.65x signals acute short-term liquidity stress and debt refinancing risk. ChatGPT: Free cash flow of negative $420M shows the company is not fully self-funding its capital program and may remain reliant on external financing. Current and quick ratios of 0.69x indicate weak near-term liquidity and limited balance-sheet flexibility.
What is NI's revenue and growth?
Nisource Inc.. reported revenue of $2.3B.
Does NI pay dividends?
Nisource Inc.. pays dividends, with $149.0M distributed to shareholders in the trailing twelve months.
Where can I find NI SEC filings?
Official SEC filings for Nisource Inc.. (CIK: 0001111711) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NI's EPS?
Nisource Inc.. has a diluted EPS of $1.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NI's fundamental grade?
Based on our AI fundamental analysis in June 2026, Nisource Inc.. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NI stock overvalued or undervalued?
Valuation metrics for NI: ROE of 5.3% (sector avg: 10%), net margin of 21.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is NI's AI grade for 2026?
Our dual AI analysis gives Nisource Inc.. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NI's free cash flow?
Nisource Inc..'s operating cash flow is $442.3M, with capital expenditures of $805.2M. FCF margin is -15.6%.
How does NI compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 21.8% (avg: 12%), ROE 5.3% (avg: 10%), current ratio 0.65 (avg: 0.8).
Is Nisource Inc.. carrying too much debt?
NI has a debt-to-equity ratio of 1.60x, which is above the Utilities sector average of 1.4x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.