FORTIS INC - FTSCN 4.13 PERP (FTS-PR-I.CA) Stock Fundamental Analysis
TSX:FTS-PR-I - Toronto Stock Exchange - CA3495538181 - Currency: CAD
FTS-PR-I gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FTS-PR-I was profitable.
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.
FTS-PR-I had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTS-PR-I has a better Return On Assets (2.20%) than 89.47% of its industry peers.
FTS-PR-I's Return On Equity of 6.82% is in line compared to the rest of the industry. FTS-PR-I outperforms 42.11% of its industry peers.
FTS-PR-I has a better Return On Invested Capital (4.04%) than 94.74% of its industry peers.
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's Profit Margin of 14.03% is amongst the best of 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.
Looking at the Operating Margin, with a value of 28.73%, FTS-PR-I belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of FTS-PR-I has remained more or less at the same level.
FTS-PR-I has a Gross Margin of 72.03%. This is amongst the best in the industry. FTS-PR-I outperforms 100.00% of its industry peers.
FTS-PR-I's Gross Margin has been stable in the last couple of years.
| 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
FTS-PR-I has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FTS-PR-I has been increased compared to 1 year ago.
The number of shares outstanding for FTS-PR-I has been increased compared to 5 years ago.
Compared to 1 year ago, FTS-PR-I has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.47, we must say that FTS-PR-I is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.47, FTS-PR-I is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
FTS-PR-I has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
FTS-PR-I's Debt to Equity ratio of 1.37 is amongst the best of the industry. FTS-PR-I outperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.47 |
ROIC/WACC0.83
WACC4.89%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FTS-PR-I may have some problems paying 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.
FTS-PR-I has a Quick 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.
The Quick ratio of FTS-PR-I (0.63) is better than 94.74% of its industry peers.
| 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.
Looking at the last year, FTS-PR-I shows a small growth in Revenue. The Revenue has grown by 3.64% in the last year.
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
The Earnings Per Share is expected to grow by 5.31% on average over the next years.
Based on estimates for the next years, FTS-PR-I will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
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 5.12, 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.
FTS-PR-I is valuated cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.79, the valuation of FTS-PR-I can be described as very cheap.
Based on the Price/Forward Earnings ratio, FTS-PR-I is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. FTS-PR-I is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.12 | ||
| Fwd PE | 4.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS-PR-I indicates a somewhat cheap valuation: FTS-PR-I is cheaper than 78.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
FTS-PR-I's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FTS-PR-I has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.02
PEG (5Y)1.01
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.50%, FTS-PR-I is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.31, FTS-PR-I's dividend is way lower than its industry peers. On top of this 89.47% of the companies listed in the same industry pay a better dividend than FTS-PR-I!
FTS-PR-I's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
5.2 History
The dividend of FTS-PR-I has a limited annual growth rate of 5.61%.
FTS-PR-I has been paying a dividend for at least 10 years, so it has 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
FTS-PR-I pays out 50.67% of its income as dividend. 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 (7/25/2025, 7:00:00 PM)
17.16
+0.11 (+0.65%)
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 Cap8.64B
Analysts54.17
Price Target18.35 (6.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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)10.46%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.12 | ||
| Fwd PE | 4.79 | ||
| P/S | 0.74 | ||
| P/FCF | N/A | ||
| P/OCF | 2 | ||
| P/B | 0.36 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)3.35
EY19.52%
EPS(NY)3.58
Fwd EY20.86%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)8.59
OCFY50.07%
SpS23.29
BVpS47.92
TBVpS18.54
PEG (NY)1.02
PEG (5Y)1.01
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
WACC4.89%
ROIC/WACC0.83
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 5Y5.31%
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 5Y16.93%
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%