FORTIS INC - FTSCN 4.12 PERP (FTS-PR-I.CA) Stock Fundamental Analysis
TSX:FTS-PR-I - Toronto Stock Exchange - CA3495538181 - Currency: CAD
Overall FTS-PR-I gets a fundamental rating of 5 out of 10. We evaluated FTS-PR-I against 19 industry peers in the Electric Utilities industry. While FTS-PR-I has a great profitability rating, there are quite some concerns on its financial health. FTS-PR-I is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FTS-PR-I had positive earnings in the past year.
FTS-PR-I had a positive operating cash flow in the past year.
In the past 5 years FTS-PR-I has always been profitable.
In the past 5 years FTS-PR-I always reported a positive cash flow from operatings.
1.2 Ratios
FTS-PR-I has a better Return On Assets (2.20%) than 89.47% of its industry peers.
Looking at the Return On Equity, with a value of 6.82%, FTS-PR-I is in line with its industry, outperforming 42.11% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.04%, FTS-PR-I belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FTS-PR-I is in line with the industry average of 3.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.82% | ||
| ROIC | 4.04% |
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-I has a Profit Margin of 14.03%. This is amongst the best in the industry. FTS-PR-I outperforms 94.74% of its industry peers.
FTS-PR-I's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 28.73%, FTS-PR-I belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
FTS-PR-I's Operating Margin has been stable in the last couple of years.
FTS-PR-I's Gross Margin of 72.03% is amongst the best of the industry. FTS-PR-I outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of FTS-PR-I has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.73% | ||
| PM (TTM) | 14.03% | ||
| GM | 72.03% |
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-I is destroying value.
Compared to 1 year ago, FTS-PR-I has more shares outstanding
FTS-PR-I has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FTS-PR-I has a worse debt to assets ratio.
2.2 Solvency
FTS-PR-I has an Altman-Z score of 0.47. This is a bad value and indicates that FTS-PR-I is not financially healthy and even has some risk of bankruptcy.
FTS-PR-I's Altman-Z score of 0.47 is on the low side compared to the rest of the industry. FTS-PR-I is outperformed by 94.74% of its industry peers.
FTS-PR-I has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.37, FTS-PR-I belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.47 |
ROIC/WACC0.69
WACC5.89%
2.3 Liquidity
FTS-PR-I has a Current Ratio of 0.76. This is a bad value and indicates that FTS-PR-I is not financially healthy enough and could expect problems in meeting its short term obligations.
FTS-PR-I has a Current ratio of 0.76. This is amongst the best in the industry. FTS-PR-I outperforms 94.74% of its industry peers.
A Quick Ratio of 0.63 indicates that FTS-PR-I may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.63, FTS-PR-I belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.72% over the past year.
FTS-PR-I shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
FTS-PR-I shows a small growth in Revenue. In the last year, the Revenue has grown by 3.64%.
Measured over the past years, FTS-PR-I shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)7.72%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%7.53%
Revenue 1Y (TTM)3.64%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
3.2 Future
Based on estimates for the next years, FTS-PR-I will show a small growth in Earnings Per Share. The EPS will grow by 5.32% on average per year.
The Revenue is expected to grow by 3.02% on average over the next years.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.32%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y3.02%
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
Based on the Price/Earnings ratio of 4.93, the valuation of FTS-PR-I can be described as very cheap.
Based on the Price/Earnings ratio, FTS-PR-I is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.69. FTS-PR-I is valued rather cheaply when compared to this.
FTS-PR-I is valuated cheaply with a Price/Forward Earnings ratio of 4.62.
Based on the Price/Forward Earnings ratio, FTS-PR-I is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FTS-PR-I to the average of the S&P500 Index (21.29), we can say FTS-PR-I is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.93 | ||
| Fwd PE | 4.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS-PR-I is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.87 |
4.3 Compensation for Growth
FTS-PR-I's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FTS-PR-I has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)0.97
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.14%, FTS-PR-I is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, FTS-PR-I pays a bit more dividend than its industry peers.
FTS-PR-I's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
5.2 History
The dividend of FTS-PR-I has a limited annual growth rate of 5.61%.
FTS-PR-I has paid a dividend for at least 10 years, which is a reliable track record.
FTS-PR-I has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.61%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
50.67% of the earnings are spent on dividend by FTS-PR-I. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-I is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.67%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS-PR-I (6/25/2025, 7:00:00 PM)
16.53
-0.28 (-1.67%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.26%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap8.29B
Analysts53.04
Price Target18.35 (11.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.67%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.44%
Min EPS beat(2)1.1%
Max EPS beat(2)1.78%
EPS beat(4)4
Avg EPS beat(4)1.78%
Min EPS beat(4)1.1%
Max EPS beat(4)2.52%
EPS beat(8)7
Avg EPS beat(8)1.67%
EPS beat(12)10
Avg EPS beat(12)1.87%
EPS beat(16)10
Avg EPS beat(16)0.11%
Revenue beat(2)0
Avg Revenue beat(2)-5.78%
Min Revenue beat(2)-11.44%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)-0.12%
Revenue beat(8)0
Avg Revenue beat(8)-5.1%
Revenue beat(12)4
Avg Revenue beat(12)0.41%
Revenue beat(16)8
Avg Revenue beat(16)1.55%
PT rev (1m)12.34%
PT rev (3m)7.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.93 | ||
| Fwd PE | 4.62 | ||
| P/S | 0.71 | ||
| P/FCF | N/A | ||
| P/OCF | 1.92 | ||
| P/B | 0.34 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 7.87 |
EPS(TTM)3.35
EY20.27%
EPS(NY)3.58
Fwd EY21.66%
FCF(TTM)-2.63
FCFYN/A
OCF(TTM)8.63
OCFY52.18%
SpS23.38
BVpS48.11
TBVpS18.62
PEG (NY)0.98
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.82% | ||
| ROCE | 4.86% | ||
| ROIC | 4.04% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 5.19% | ||
| OM | 28.73% | ||
| PM (TTM) | 14.03% | ||
| GM | 72.03% | ||
| 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-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 285.98% | ||
| Cap/Sales | 48.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.47 |
F-Score5
WACC5.89%
ROIC/WACC0.69
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 5Y5.32%
Revenue 1Y (TTM)3.64%
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 5Y3.02%
EBIT growth 1Y7.64%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y16.94%
FCF growth 1Y-81.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.24%
OCF growth 3Y10.12%
OCF growth 5Y7.71%