How Does This Utility Earn Revenue?
NiSource is a regulated utility that delivers energy services to customers in the US. The business centers on providing essential utility service through its network and related infrastructure. It earns revenue by operating and maintaining these utility systems for end users. With a market value around USD 22.4 billion, it sits at a scale where capital planning and funding choices matter.
Are Margins and Cash Flow Holding Up?
FundamentalsFor 2025, reported in USD, revenue was about USD 6.5 billion, with EBIT of roughly USD 1.8 billion and net income of around USD 1.0 billion. Year over year, revenue grew 23.5%, alongside a TTM operating margin of 28.30% and a net profit margin of 14.36%.
The balance sheet and funding load show up clearly in the cash and reinvestment lines. Cash ended the period at about USD 110 million against total debt of roughly USD 15.5 billion, while depreciation and amortization ran near USD 1.2 billion and capex was about USD 2.8 billion. After that capex, the cash-flow proxy was around USD 16.7 million.
Is the Market Underpricing the Shares?
DCF / MultiplesAt USD 46.62, the stock trades below the DCF’s implied value range across weaker, central, and stronger operating scenarios. The current pricing also comes with a 23.36 P/E and 12.66 EV/EBITDA, which frames the shares as a paid-up utility despite the company’s heavy capital spending profile.
Balance Sheet Strength Is Key
TakeawayThe valuation looks supportive, but the balance sheet carries real weight. The case depends on funding capex without squeezing cash too hard. Debt staying manageable matters more than small margin shifts. If cash generation stalls, the leverage becomes the story.