Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our lives buying utilities at Berkshire Hathaway Energy, so nobody needs to explain this business to us. And that is precisely why we cannot recommend NiSource common stock at $46.69. This is a decent, competently run, average business — a regulated toll collector whose tolls are set by state commissions — that the market has decided to price like a wonderful one because two hyperscalers signed power contracts in Indiana. At roughly 23 times forward earnings, with a 2.5% yield, chronically negative free cash flow, $17 billion of debt, and a share count that grows every single year, the arithmetic simply does not produce a margin of safety. We rate it 2 stars: an average business at a premium price. The rating would be the same at 18 times earnings, though our tone would be friendlier. NiSource is one of the easier businesses in America to understand, which we appreciate.
Recent filings analysed: 8-K (2026-08-18), FWP (2026-08-13), 10-Q (2026-08-05), 8-K (2026-08-05).
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