FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA) Stock Fundamental Analysis
TSX:FTS-PR-G - Toronto Stock Exchange - CA3495538348 - Currency: CAD
Overall FTS-PR-G gets a fundamental rating of 4 out of 10. We evaluated FTS-PR-G against 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.
FTS-PR-G had a positive operating cash flow in the past year.
FTS-PR-G had positive earnings in each of the past 5 years.
Each year in the past 5 years FTS-PR-G had a positive operating cash flow.
1.2 Ratios
FTS-PR-G has a Return On Assets (2.19%) which is in line with its industry peers.
FTS-PR-G has a Return On Equity (6.75%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 4.06%, FTS-PR-G is doing good in the industry, outperforming 63.16% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FTS-PR-G is in line with the industry average of 3.62%.
| 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 has a Profit Margin of 13.96%. This is in the better half of the industry: FTS-PR-G outperforms 63.16% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-G has declined.
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.
FTS-PR-G has a Gross Margin of 71.77%. This is in the better half of the industry: FTS-PR-G outperforms 68.42% of its industry peers.
FTS-PR-G'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-G is destroying value.
The number of shares outstanding for FTS-PR-G has been increased compared to 1 year ago.
FTS-PR-G has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FTS-PR-G is higher compared to a year ago.
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.
FTS-PR-G has a better Altman-Z score (0.49) than 68.42% of its industry peers.
FTS-PR-G has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.33, FTS-PR-G is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.49 |
ROIC/WACC0.87
WACC4.68%
2.3 Liquidity
A Current Ratio of 0.63 indicates that FTS-PR-G may have some problems paying its short term obligations.
FTS-PR-G has a worse Current ratio (0.63) than 84.21% of its industry peers.
A Quick Ratio of 0.52 indicates that FTS-PR-G may have some problems paying its short term obligations.
FTS-PR-G has a worse Quick ratio (0.52) than 89.47% 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 6.15%.
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.
FTS-PR-G shows a decrease in Revenue. In the last year, the revenue decreased by -0.08%.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)6.15%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%15.28%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%2.22%
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.
Based on estimates for the next years, FTS-PR-G will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.09%
Revenue Next Year4.93%
Revenue Next 2Y4.5%
Revenue Next 3Y3.94%
Revenue Next 5Y2.93%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 6.63 indicates a rather cheap valuation of FTS-PR-G.
The rest of the industry has a similar Price/Earnings ratio as FTS-PR-G.
When comparing the Price/Earnings ratio of FTS-PR-G to the average of the S&P500 Index (27.85), we can say FTS-PR-G is valued rather cheaply.
The Price/Forward Earnings ratio is 6.31, which indicates a rather cheap valuation of FTS-PR-G.
The rest of the industry has a similar Price/Forward Earnings ratio as FTS-PR-G.
The average S&P500 Price/Forward Earnings ratio is at 20.77. FTS-PR-G is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 6.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS-PR-G is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FTS-PR-G has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.32
PEG (5Y)1.3
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.66%, FTS-PR-G has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.21, FTS-PR-G has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, FTS-PR-G pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
The dividend of FTS-PR-G has a limited annual growth rate of 5.61%.
FTS-PR-G has been paying a dividend for at least 10 years, so it has a reliable track record.
FTS-PR-G has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.61%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
50.93% of the earnings are spent on dividend by FTS-PR-G. 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 (5/1/2025, 7:00:00 PM)
21.75
+0.03 (+0.14%)
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 Cap10.91B
Analysts51.82
Price Target21.32 (-1.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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)-5.92%
PT rev (3m)-6.99%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)3.82%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.64%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 6.31 | ||
| P/S | 0.95 | ||
| P/FCF | N/A | ||
| P/OCF | 2.81 | ||
| P/B | 0.46 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)3.28
EY15.08%
EPS(NY)3.44
Fwd EY15.84%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY35.58%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)1.32
PEG (5Y)1.3
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
WACC4.68%
ROIC/WACC0.87
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)6.15%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%15.28%
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%2.22%
Revenue Next Year4.93%
Revenue Next 2Y4.5%
Revenue Next 3Y3.94%
Revenue Next 5Y2.93%
EBIT growth 1Y6.74%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.93%
EBIT Next 3Y25.61%
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%