Morningstar Rating

Stock Research and Analysis

by Charles Fishman, CFA

Bulls Say

We expect NiSource's annual dividend growth for its legacy utility business to average approximately 5% during the next five years.
We believe the separation of the Columbia Pipeline Group from NiSource was good shareholder stewardship as the market should value the individual businesses with a higher valuation.
New legislation has improved the regulatory framework in Indiana for NiSource's electric and natural gas distribution utilities. Read more 

Bears Say

Almost 50% of NiSource's electric sales are to industrial customers, higher than most utilities. Industrial sales are more sensitive to the economy than residential and commercial sales.
Although NiSource reports weather-normalized operating earnings, mild weather negatively affects GAAP earnings and cash flow.
The CEO and CFO of NiSource went with the Columbia Pipeline Group following the separation. Although NiSource's new top executives have considerable utility experience, they are in new positions. Read more 


We assign NiSource a Standard stewardship rating. We believe the formation of an MLP and the tax-free separation of CPG exhibited exemplary stewardship of shareholder capital. However, the CEO and CFO that drove those decisions left NiSource to go with   Read more 


NiSource is one of the nation's largest natural gas distribution companies with 3.4 million customers in Indiana, Kentucky, Maryland, Massachusetts, Ohio, Pennsylvania,   Read more 

A Good Entry Point for 2 Solid Utilities 
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