Based on the provided data and current market context, here's a comprehensive analysis of NI's valuation:
Technical Analysis
Valuation Analysis
NI is currently trading at $38.11, with key valuation metrics showing:
- Forward P/E: 21.09x (Q3 2024)
- EV/EBITDA: 12.76x
- P/S: 2.95x
- P/B: 1.94x
Growth and Performance
NiSource has demonstrated strong market performance, with shares rising 51.2% over the past year, significantly outperforming both the S&P 500's 20.6% gain and the Utilities Select Sector SPDR Fund's 29.2% return.
Financial Health
The company maintains solid financial metrics:
- Gross Margin: 59.55% (Q3 2024)
- ROE: 10.28%
- Net Margin: 9.01%
- Current Ratio: 0.46x
Analyst Consensus
The stock currently has unanimous "Strong Buy" ratings from all 14 analysts covering it, with a mean price target of $39.88. Recent analyst actions include Guggenheim raising the price target to $42 from $38.
Conclusion
Based on the comprehensive analysis, NI appears to be fairly valued to slightly overvalued at current levels:
- The current P/E ratio of 21.09x is above historical utility sector averages
- However, strong analyst consensus and outperformance versus peers suggest potential upside
- The company's solid financial metrics and growth trajectory support current valuations
- Recent data center growth opportunities and regulatory support provide additional upside potential