FORTIS INC - FTSCN 4.9 PERP (FTS-PR-F.CA) Stock Fundamental Analysis
TSX:FTS-PR-F - Toronto Stock Exchange - CA3495538678 - Currency: CAD
Overall FTS-PR-F gets a fundamental rating of 4 out of 10. We evaluated FTS-PR-F against 19 industry peers in the Electric Utilities industry. While FTS-PR-F is still in line with the averages on profitability rating, there are concerns on its financial health. FTS-PR-F has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FTS-PR-F was profitable.
In the past year FTS-PR-F had a positive cash flow from operations.
Each year in the past 5 years FTS-PR-F has been profitable.
FTS-PR-F had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTS-PR-F has a better Return On Assets (2.20%) than 68.42% of its industry peers.
With a Return On Equity value of 6.82%, FTS-PR-F is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
FTS-PR-F has a Return On Invested Capital of 4.04%. This is in the better half of the industry: FTS-PR-F outperforms 73.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTS-PR-F is in line with the industry average of 3.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.82% | ||
| ROIC | 4.04% |
ROA(3y)2.18%
ROA(5y)2.17%
ROE(3y)6.69%
ROE(5y)6.58%
ROIC(3y)4.1%
ROIC(5y)4.04%
1.3 Margins
FTS-PR-F has a Profit Margin of 14.03%. This is in the better half of the industry: FTS-PR-F outperforms 73.68% of its industry peers.
FTS-PR-F's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 28.73%, FTS-PR-F is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
In the last couple of years the Operating Margin of FTS-PR-F has remained more or less at the same level.
FTS-PR-F's Gross Margin of 72.03% is fine compared to the rest of the industry. FTS-PR-F outperforms 78.95% of its industry peers.
In the last couple of years the Gross Margin of FTS-PR-F has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.73% | ||
| PM (TTM) | 14.03% | ||
| GM | 72.03% |
OM growth 3Y3.06%
OM growth 5Y0.41%
PM growth 3Y2.32%
PM growth 5Y-5.83%
GM growth 3Y1.43%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
FTS-PR-F has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FTS-PR-F has more shares outstanding than it did 1 year ago.
FTS-PR-F has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FTS-PR-F has a worse debt to assets ratio.
2.2 Solvency
FTS-PR-F has an Altman-Z score of 0.50. This is a bad value and indicates that FTS-PR-F is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.50, FTS-PR-F perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
FTS-PR-F has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.37, FTS-PR-F is doing good in the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.5 |
ROIC/WACC0.85
WACC4.78%
2.3 Liquidity
FTS-PR-F has a Current Ratio of 0.76. This is a bad value and indicates that FTS-PR-F is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.76, FTS-PR-F is doing good in the industry, outperforming 73.68% of the companies in the same industry.
FTS-PR-F has a Quick Ratio of 0.76. This is a bad value and indicates that FTS-PR-F is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.63, FTS-PR-F is doing good in the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.72% over the past year.
FTS-PR-F shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
FTS-PR-F shows a small growth in Revenue. In the last year, the Revenue has grown by 3.64%.
FTS-PR-F shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)7.72%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%7.53%
Revenue 1Y (TTM)3.64%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
3.2 Future
Based on estimates for the next years, FTS-PR-F will show a small growth in Earnings Per Share. The EPS will grow by 5.09% on average per year.
FTS-PR-F is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.93% yearly.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.09%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y2.93%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.54, the valuation of FTS-PR-F can be described as very cheap.
The rest of the industry has a similar Price/Earnings ratio as FTS-PR-F.
FTS-PR-F's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.52.
Based on the Price/Forward Earnings ratio of 6.12, the valuation of FTS-PR-F can be described as very cheap.
FTS-PR-F's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of FTS-PR-F to the average of the S&P500 Index (22.25), we can say FTS-PR-F is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 6.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS-PR-F is valued a bit more expensive than the industry average as 63.16% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.37 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FTS-PR-F may justify a higher PE ratio.
PEG (NY)1.31
PEG (5Y)1.29
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS-PR-F has a Yearly Dividend Yield of 3.70%.
FTS-PR-F's Dividend Yield is slightly below the industry average, which is at 4.18.
FTS-PR-F's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
The dividend of FTS-PR-F has a limited annual growth rate of 5.61%.
FTS-PR-F has been paying a dividend for at least 10 years, so it has a reliable track record.
FTS-PR-F has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.61%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
50.67% of the earnings are spent on dividend by FTS-PR-F. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-F is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.67%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS-PR-F (6/5/2025, 7:00:00 PM)
21.92
+0.12 (+0.55%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap11.00B
Analysts51.82
Price Target20.9 (-4.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.67%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.44%
Min EPS beat(2)1.1%
Max EPS beat(2)1.78%
EPS beat(4)4
Avg EPS beat(4)1.78%
Min EPS beat(4)1.1%
Max EPS beat(4)2.52%
EPS beat(8)7
Avg EPS beat(8)1.67%
EPS beat(12)10
Avg EPS beat(12)1.87%
EPS beat(16)10
Avg EPS beat(16)0.11%
Revenue beat(2)0
Avg Revenue beat(2)-5.78%
Min Revenue beat(2)-11.44%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)-0.12%
Revenue beat(8)0
Avg Revenue beat(8)-5.1%
Revenue beat(12)4
Avg Revenue beat(12)0.41%
Revenue beat(16)8
Avg Revenue beat(16)1.55%
PT rev (1m)0%
PT rev (3m)-7.26%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-3.47%
Revenue NQ rev (3m)-5.23%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 6.12 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | 2.54 | ||
| P/B | 0.46 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 8.37 |
EPS(TTM)3.35
EY15.28%
EPS(NY)3.58
Fwd EY16.33%
FCF(TTM)-2.63
FCFYN/A
OCF(TTM)8.63
OCFY39.35%
SpS23.38
BVpS48.11
TBVpS18.62
PEG (NY)1.31
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.82% | ||
| ROCE | 4.86% | ||
| ROIC | 4.04% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 5.19% | ||
| OM | 28.73% | ||
| PM (TTM) | 14.03% | ||
| GM | 72.03% | ||
| FCFM | N/A |
ROA(3y)2.18%
ROA(5y)2.17%
ROE(3y)6.69%
ROE(5y)6.58%
ROIC(3y)4.1%
ROIC(5y)4.04%
ROICexc(3y)4.12%
ROICexc(5y)4.06%
ROICexgc(3y)5.36%
ROICexgc(5y)5.34%
ROCE(3y)4.93%
ROCE(5y)4.87%
ROICexcg growth 3Y0.42%
ROICexcg growth 5Y-1.68%
ROICexc growth 3Y1.61%
ROICexc growth 5Y-0.39%
OM growth 3Y3.06%
OM growth 5Y0.41%
PM growth 3Y2.32%
PM growth 5Y-5.83%
GM growth 3Y1.43%
GM growth 5Y0.13%
F-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 285.98% | ||
| Cap/Sales | 48.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.5 |
F-Score5
WACC4.78%
ROIC/WACC0.85
Cap/Depr(3y)245.88%
Cap/Depr(5y)249.09%
Cap/Sales(3y)38.85%
Cap/Sales(5y)39.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.72%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%7.53%
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.09%
Revenue 1Y (TTM)3.64%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y2.93%
EBIT growth 1Y7.64%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y16.63%
FCF growth 1Y-81.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.24%
OCF growth 3Y10.12%
OCF growth 5Y7.71%