FORTIS INC - FTSCN 1.835 PERP (FTS-PR-H.CA) Stock Fundamental Analysis
TSX:FTS-PR-H - Toronto Stock Exchange - CA3495538264 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to FTS-PR-H. FTS-PR-H was compared to 19 industry peers in the Electric Utilities industry. There are concerns on the financial health of FTS-PR-H while its profitability can be described as average. 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
In the past year FTS-PR-H was profitable.
FTS-PR-H had a positive operating cash flow in the past year.
FTS-PR-H had positive earnings in each of the past 5 years.
Each year in the past 5 years FTS-PR-H had a positive operating cash flow.
1.2 Ratios
FTS-PR-H has a worse Return On Assets (2.19%) than 63.16% of its industry peers.
FTS-PR-H has a Return On Equity of 6.75%. This is in the lower half of the industry: FTS-PR-H underperforms 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.
The Average Return On Invested Capital over the past 3 years for FTS-PR-H 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-H's Profit Margin of 13.96% is amongst the best of the industry. FTS-PR-H outperforms 84.21% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-H has declined.
The Operating Margin of FTS-PR-H (28.61%) is better than 94.74% of its industry peers.
In the last couple of years the Operating Margin of FTS-PR-H has remained more or less at the same level.
FTS-PR-H has a Gross Margin of 71.77%. This is amongst the best in 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
FTS-PR-H has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FTS-PR-H has more shares outstanding
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
Based on the Altman-Z score of 0.46, we must say that FTS-PR-H is in the distress zone and has some risk of bankruptcy.
FTS-PR-H has a worse Altman-Z score (0.46) than 89.47% of its industry peers.
FTS-PR-H has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
With an excellent Debt to Equity ratio value of 1.33, FTS-PR-H belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
| 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.
The Current ratio of FTS-PR-H (0.63) is comparable to the rest of the industry.
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 (0.52) which is in line with 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.
The Earnings Per Share has been growing slightly by 5.08% on average over the past years.
Looking at the last year, FTS-PR-H shows a decrease in Revenue. The Revenue has decreased by -0.08% in the last year.
FTS-PR-H 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
The Earnings Per Share is expected to grow by 5.09% on average over the next years.
FTS-PR-H 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.
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
The Price/Earnings ratio is 5.18, which indicates a rather cheap valuation of FTS-PR-H.
84.21% of the companies in the same industry are more expensive than FTS-PR-H, based on the Price/Earnings ratio.
FTS-PR-H is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.85, which indicates a rather cheap valuation of FTS-PR-H.
Based on the Price/Forward Earnings ratio, FTS-PR-H is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
FTS-PR-H is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.18 | ||
| Fwd PE | 4.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS-PR-H indicates a somewhat cheap valuation: FTS-PR-H is cheaper than 68.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.03 |
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)1.03
PEG (5Y)1.02
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.70%, FTS-PR-H has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.70, 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 | 3.7% |
5.2 History
The dividend of FTS-PR-H has a limited annual growth rate of 5.61%.
FTS-PR-H has been paying a dividend for at least 10 years, so it has 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 (5/30/2025, 7:00:00 PM)
17.35
+0.25 (+1.46%)
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 Cap8.70B
Analysts51.82
Price Target15.95 (-8.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.93%
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 | 5.18 | ||
| Fwd PE | 4.85 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 2.24 | ||
| P/B | 0.37 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 8.03 |
EPS(TTM)3.35
EY19.31%
EPS(NY)3.58
Fwd EY20.64%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY44.6%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)1.03
PEG (5Y)1.02
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%