FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA) Stock Fundamental Analysis
TSX:FTS-PR-G - Toronto Stock Exchange - CA3495538348 - Currency: CAD
Taking everything into account, FTS-PR-G scores 3 out of 10 in our fundamental rating. FTS-PR-G was compared to 19 industry peers in the Electric Utilities industry. There are concerns on the financial health of FTS-PR-G while its profitability can be described as average. FTS-PR-G is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FTS-PR-G had positive earnings in the past year.
In the past year FTS-PR-G had a positive cash flow from operations.
In the past 5 years FTS-PR-G has always been profitable.
Each year in the past 5 years FTS-PR-G had a positive operating cash flow.
1.2 Ratios
FTS-PR-G's Return On Assets of 2.19% is on the low side compared to the rest of the industry. FTS-PR-G is outperformed by 89.47% of its industry peers.
The Return On Equity of FTS-PR-G (6.75%) is worse than 89.47% of its industry peers.
The Return On Invested Capital of FTS-PR-G (4.06%) is better than 63.16% of its industry peers.
FTS-PR-G 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-G's Profit Margin of 13.96% is in line compared to the rest of the industry. FTS-PR-G outperforms 57.89% of its industry peers.
FTS-PR-G's Profit Margin has declined in the last couple of years.
FTS-PR-G has a Operating Margin of 28.61%. This is in the better half of the industry: FTS-PR-G outperforms 68.42% of its industry peers.
In the last couple of years the Operating Margin of FTS-PR-G has remained more or less at the same level.
Looking at the Gross Margin, with a value of 71.77%, FTS-PR-G is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
In the last couple of years the Gross Margin of FTS-PR-G has remained more or less at the same level.
| 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
FTS-PR-G has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FTS-PR-G has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FTS-PR-G has been increased compared to 5 years ago.
FTS-PR-G has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.49, we must say that FTS-PR-G is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FTS-PR-G (0.49) is comparable to the rest of the industry.
FTS-PR-G has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FTS-PR-G (1.33) is better than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.49 |
ROIC/WACC0.84
WACC4.81%
2.3 Liquidity
FTS-PR-G has a Current Ratio of 0.63. This is a bad value and indicates that FTS-PR-G is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.63, FTS-PR-G is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
A Quick Ratio of 0.52 indicates that FTS-PR-G may have some problems paying its short term obligations.
FTS-PR-G's Quick ratio of 0.52 is on the low side compared to the rest of the industry. FTS-PR-G is outperformed by 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FTS-PR-G shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.72%.
FTS-PR-G shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
The Revenue has decreased by -0.08% in the past year.
FTS-PR-G 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)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
3.2 Future
Based on estimates for the next years, FTS-PR-G will show a small growth in Earnings Per Share. The EPS will grow by 5.09% on average per year.
The Revenue is expected to grow by 2.93% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FTS-PR-G is valuated cheaply with a Price/Earnings ratio of 6.69.
Compared to the rest of the industry, the Price/Earnings ratio of FTS-PR-G is on the same level as its industry peers.
FTS-PR-G is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
FTS-PR-G is valuated cheaply with a Price/Forward Earnings ratio of 6.26.
FTS-PR-G's Price/Forward Earnings is on the same level as the industry average.
FTS-PR-G's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 6.26 |
4.2 Price Multiples
73.68% of the companies in the same industry are cheaper than FTS-PR-G, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.54 |
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)1.33
PEG (5Y)1.32
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS-PR-G has a Yearly Dividend Yield of 3.69%. Purely for dividend investing, there may be better candidates out there.
FTS-PR-G's Dividend Yield is comparable with the industry average which is at 4.19.
Compared to an average S&P500 Dividend Yield of 2.40, FTS-PR-G pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
5.2 History
The dividend of FTS-PR-G has a limited annual growth rate of 5.61%.
FTS-PR-G has paid a dividend for at least 10 years, which is a reliable track record.
FTS-PR-G has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.61%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
FTS-PR-G 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-G 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-G (5/23/2025, 7:00:00 PM)
22.4
+0.23 (+1.04%)
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 Cap11.24B
Analysts51.82
Price Target22.3 (-0.45%)
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 Years2
Div Non Decr Years10
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)-0.87%
PT rev (3m)-2.98%
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 | 6.69 | ||
| Fwd PE | 6.26 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | 2.89 | ||
| P/B | 0.47 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 8.54 |
EPS(TTM)3.35
EY14.96%
EPS(NY)3.58
Fwd EY15.98%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY34.55%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)1.33
PEG (5Y)1.32
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 | 0.49 |
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%