FORTIS INC - FTSCN 1.835 PERP (FTS-PR-H.CA) Stock Fundamental Analysis
TSX:FTS-PR-H - Toronto Stock Exchange - CA3495538264 - Currency: CAD
Overall FTS-PR-H gets a fundamental rating of 4 out of 10. We evaluated FTS-PR-H against 19 industry peers in the Electric Utilities industry. While FTS-PR-H is still in line with the averages on profitability rating, there are concerns on its financial health. FTS-PR-H has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FTS-PR-H had positive earnings in the past year.
In the past year FTS-PR-H had a positive cash flow from operations.
Each year in the past 5 years FTS-PR-H has been profitable.
In the past 5 years FTS-PR-H always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.19%, FTS-PR-H is doing worse than 63.16% of the companies in the same industry.
The Return On Equity of FTS-PR-H (6.75%) is worse than 63.16% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.06%, FTS-PR-H belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
FTS-PR-H 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
Looking at the Profit Margin, with a value of 13.96%, FTS-PR-H belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
FTS-PR-H's Profit Margin has declined in the last couple of years.
FTS-PR-H has a Operating Margin of 28.61%. This is amongst the best in the industry. FTS-PR-H outperforms 94.74% of its industry peers.
FTS-PR-H's Operating Margin has been stable in the last couple of years.
FTS-PR-H's Gross Margin of 71.77% is amongst the best of the industry. FTS-PR-H outperforms 94.74% of its industry peers.
In the last couple of years the Gross Margin of FTS-PR-H 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS-PR-H is destroying value.
FTS-PR-H has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FTS-PR-H has been increased compared to 5 years ago.
FTS-PR-H has a worse debt/assets ratio than last year.
2.2 Solvency
FTS-PR-H has an Altman-Z score of 0.46. This is a bad value and indicates that FTS-PR-H is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FTS-PR-H (0.46) is worse than 89.47% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS-PR-H has dependencies on debt financing.
FTS-PR-H has a Debt to Equity ratio of 1.33. This is amongst the best in the industry. FTS-PR-H outperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC0.84
WACC4.82%
2.3 Liquidity
FTS-PR-H has a Current Ratio of 0.63. This is a bad value and indicates that FTS-PR-H is not financially healthy enough and could expect problems in meeting its short term obligations.
FTS-PR-H's Current ratio of 0.63 is in line compared to the rest of the industry. FTS-PR-H outperforms 42.11% of its industry peers.
A Quick Ratio of 0.52 indicates that FTS-PR-H may have some problems paying its short term obligations.
FTS-PR-H has a Quick ratio of 0.52. This is comparable to the rest of the industry: FTS-PR-H outperforms 42.11% 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.
FTS-PR-H shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
Looking at the last year, FTS-PR-H 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
Based on estimates for the next years, FTS-PR-H 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
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.
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
FTS-PR-H is valuated cheaply with a Price/Earnings ratio of 5.07.
Compared to the rest of the industry, the Price/Earnings ratio of FTS-PR-H indicates a rather cheap valuation: FTS-PR-H is cheaper than 84.21% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, FTS-PR-H is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.75, the valuation of FTS-PR-H can be described as very cheap.
FTS-PR-H's Price/Forward Earnings ratio is rather cheap when compared to the industry. FTS-PR-H is cheaper than 94.74% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.20. FTS-PR-H is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.07 | ||
| Fwd PE | 4.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS-PR-H is valued a bit cheaper than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.02 |
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-H may justify a higher PE ratio.
PEG (NY)1.01
PEG (5Y)1
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.69%, FTS-PR-H has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.69, FTS-PR-H pays less dividend than the industry average, which is at 4.19. 84.21% of the companies listed in the same industry pay a better dividend than FTS-PR-H!
Compared to an average S&P500 Dividend Yield of 2.40, FTS-PR-H pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
5.2 History
The dividend of FTS-PR-H has a limited annual growth rate of 5.61%.
FTS-PR-H has paid a dividend for at least 10 years, which is a reliable track record.
FTS-PR-H has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.61%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
50.93% of the earnings are spent on dividend by FTS-PR-H. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-H 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-H (5/27/2025, 7:00:00 PM)
17
+0.03 (+0.18%)
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 Cap8.53B
Analysts51.82
Price Target15.95 (-6.18%)
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 Years3
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)-4.03%
PT rev (3m)-4.25%
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 | 5.07 | ||
| Fwd PE | 4.75 | ||
| P/S | 0.74 | ||
| P/FCF | N/A | ||
| P/OCF | 2.2 | ||
| P/B | 0.36 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)3.35
EY19.71%
EPS(NY)3.58
Fwd EY21.06%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY45.52%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)1.01
PEG (5Y)1
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 | 0.46 |
F-Score4
WACC4.82%
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%