NiSource vs Pinnacle West Capital
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KIRA’s take AI analyst
I put NiSource and Pinnacle West Capital side by side, using each one’s latest annual report. Here is what stands out:
- NiSource is the larger business, with $6.5B of revenue in fiscal 2025 against $5.3B for Pinnacle West Capital.
- NiSource grew revenue faster (23.5%, against 4.2%).
- NiSource kept more of each dollar of sales as operating profit (28.1% operating margin, against 20.0%).
- NiSource turned more of its sales into free cash flow (−6.4% FCF margin, against −15.4%).
- Investors pay more for each dollar of NiSource’s earnings: a P/E of 23.1x against 20.2x for Pinnacle West Capital.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
NiSource
NI
8/10
Revenue growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Pinnacle West Capital
PNW
2/10
5-year growthNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | NI FY25 | PNW FY25 |
|---|---|---|
| Size | ||
| Market cap | $20.9B | $13.1B |
| Revenue | $6.5B | $5.3B |
| Free cash flow | −$420M | −$820M |
| Net income | $930M | $632M |
| Growth | ||
| Revenue growth | 23.5% | 4.2% |
| 5-year growth | 7.8% | 8.3% |
| Share count change | 4.1% | 4.9% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 28.1% | 20.0% |
| Net margin | 14.3% | 11.8% |
| FCF margin | −6.4% | −15.4% |
| Return on capital | 5.8% | 5.4% |
| Return on equity | 10.3% | 9.2% |
| Balance sheet | ||
| Net debt | $16.1B | $10.6B |
| Net debt / EBITDA | 5.4x | 5.2x |
| Dividends and buybacks | $530M | $423M |
| Valuation & quality | ||
| P/E | 23.1x | 20.2x |
| Piotroski F-score | 6 | 3 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.