FORTIS INC - FTSCN 4.9 PERP (FTS-PR-F.CA) Stock Fundamental Analysis
TSX:FTS-PR-F - Toronto Stock Exchange - CA3495538678 - Currency: CAD
We assign a fundamental rating of 3 out of 10 to FTS-PR-F. FTS-PR-F was compared to 19 industry peers in the Electric Utilities industry. FTS-PR-F has a medium profitability rating, but doesn't score so well on its financial health evaluation. FTS-PR-F has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FTS-PR-F was profitable.
FTS-PR-F had a positive operating cash flow in the past year.
FTS-PR-F had positive earnings in each of the past 5 years.
FTS-PR-F had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.19%, FTS-PR-F is doing worse than 84.21% of the companies in the same industry.
With a Return On Equity value of 6.75%, FTS-PR-F is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
The Return On Invested Capital of FTS-PR-F (4.06%) is better than 68.42% of its industry peers.
FTS-PR-F had an Average Return On Invested Capital over the past 3 years of 4.10%. This is in line with the industry average of 3.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROIC | 4.06% |
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's Profit Margin of 13.96% is fine compared to the rest of the industry. FTS-PR-F outperforms 63.16% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-F has declined.
FTS-PR-F's Operating Margin of 28.61% is fine compared to the rest of the industry. FTS-PR-F outperforms 73.68% of its industry peers.
FTS-PR-F's Operating Margin has been stable in the last couple of years.
FTS-PR-F has a better Gross Margin (71.77%) than 73.68% of its industry peers.
FTS-PR-F's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTS-PR-F is destroying value.
Compared to 1 year ago, FTS-PR-F has more shares outstanding
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
Based on the Altman-Z score of 0.48, we must say that FTS-PR-F is in the distress zone and has some risk of bankruptcy.
FTS-PR-F has a Altman-Z score of 0.48. This is comparable to the rest of the industry: FTS-PR-F outperforms 42.11% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS-PR-F has dependencies on debt financing.
FTS-PR-F has a Debt to Equity ratio of 1.33. This is in the better half of the industry: FTS-PR-F outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.84
WACC4.81%
2.3 Liquidity
A Current Ratio of 0.63 indicates that FTS-PR-F may have some problems paying its short term obligations.
FTS-PR-F has a Current ratio of 0.63. This is in the lower half of the industry: FTS-PR-F underperforms 78.95% of its industry peers.
FTS-PR-F has a Quick Ratio of 0.63. 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.
FTS-PR-F has a Quick ratio of 0.52. This is in the lower half of the industry: FTS-PR-F underperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.72% over the past year.
Measured over the past 5 years, FTS-PR-F shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
Looking at the last year, FTS-PR-F shows a decrease in Revenue. The Revenue has decreased by -0.08% in the last year.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)7.72%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%7.53%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
3.2 Future
The Earnings Per Share is expected to grow by 5.09% on average over the next years.
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 6.42, the valuation of FTS-PR-F can be described as very cheap.
FTS-PR-F's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.35, FTS-PR-F is valued rather cheaply.
The Price/Forward Earnings ratio is 6.00, which indicates a rather cheap valuation of FTS-PR-F.
FTS-PR-F's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.20. FTS-PR-F is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.42 | ||
| Fwd PE | 6 |
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 68.42% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.28
PEG (5Y)1.26
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.69%, FTS-PR-F has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.19, FTS-PR-F is paying slightly less dividend.
FTS-PR-F's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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
FTS-PR-F pays out 50.93% of its income as dividend. 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.
DP50.93%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS-PR-F (5/27/2025, 7:00:00 PM)
21.5
-0.12 (-0.56%)
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 Cap10.79B
Analysts51.82
Price Target20.9 (-2.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.93%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.81%
Min EPS beat(2)1.1%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)2.11%
Min EPS beat(4)1.1%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)2.73%
EPS beat(12)9
Avg EPS beat(12)1.66%
EPS beat(16)10
Avg EPS beat(16)0.03%
Revenue beat(2)0
Avg Revenue beat(2)-8.61%
Min Revenue beat(2)-11.44%
Max Revenue beat(2)-5.78%
Revenue beat(4)0
Avg Revenue beat(4)-6.8%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)-2.48%
Revenue beat(8)1
Avg Revenue beat(8)-4.33%
Revenue beat(12)5
Avg Revenue beat(12)0.72%
Revenue beat(16)9
Avg Revenue beat(16)1.6%
PT rev (1m)-7.21%
PT rev (3m)-7.26%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)-0.05%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.42 | ||
| Fwd PE | 6 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | 2.78 | ||
| P/B | 0.45 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 8.47 |
EPS(TTM)3.35
EY15.58%
EPS(NY)3.58
Fwd EY16.65%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY35.99%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)1.28
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROCE | 4.88% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.08% | ||
| ROICexgc | 5.22% | ||
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% | ||
| 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-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.07 | ||
| Cap/Depr | 270.78% | ||
| Cap/Sales | 45.34% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 74.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.48 |
F-Score4
WACC4.81%
ROIC/WACC0.84
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)-0.08%
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 1Y6.74%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y16.63%
FCF growth 1Y-114.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.51%
OCF growth 3Y10.12%
OCF growth 5Y7.71%