FORTIS INC - FTSCN 4.11 PERP (FTS-PR-I.CA) Stock Fundamental Analysis
TSX:FTS-PR-I - Toronto Stock Exchange - CA3495538181 - Currency: CAD
Taking everything into account, FTS-PR-I scores 4 out of 10 in our fundamental rating. FTS-PR-I was compared to 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FTS-PR-I had positive earnings in the past year.
In the past year FTS-PR-I had a positive cash flow from operations.
In the past 5 years FTS-PR-I has always been profitable.
Each year in the past 5 years FTS-PR-I had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.20%, FTS-PR-I belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
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.
FTS-PR-I's Return On Invested Capital of 4.04% is amongst the best of the industry. FTS-PR-I outperforms 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.
FTS-PR-I has a Operating Margin of 28.73%. This is amongst the best in the industry. FTS-PR-I outperforms 100.00% of its industry peers.
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's Gross Margin of 72.03% is amongst the best of 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.
The debt/assets ratio for FTS-PR-I is higher compared to a year ago.
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.
FTS-PR-I has a Altman-Z score of 0.47. This is amonst the worse of the industry: FTS-PR-I underperforms 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/WACC0.83
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.
Looking at the Current ratio, with a value of 0.76, FTS-PR-I belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that FTS-PR-I may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.63, FTS-PR-I belongs to the best 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.
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.
FTS-PR-I 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)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 5.31% on average per year.
FTS-PR-I is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.02% yearly.
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.
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
With a Price/Earnings ratio of 5.05, 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 27.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.73, the valuation of FTS-PR-I can be described as very cheap.
Based on the Price/Forward Earnings ratio, FTS-PR-I is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, FTS-PR-I is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.05 | ||
| Fwd PE | 4.73 |
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 | 7.91 |
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-I may justify a higher PE ratio.
PEG (NY)1.01
PEG (5Y)0.99
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS-PR-I has a Yearly Dividend Yield of 3.81%.
With a Dividend Yield of 3.81, FTS-PR-I pays less dividend than the industry average, which is at 4.31. 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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.
FTS-PR-I's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.67%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS-PR-I (7/21/2025, 7:00:00 PM)
16.93
-0.17 (-0.99%)
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 Cap8.53B
Analysts54.17
Price Target18.35 (8.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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 | 5.05 | ||
| Fwd PE | 4.73 | ||
| P/S | 0.73 | ||
| P/FCF | N/A | ||
| P/OCF | 1.97 | ||
| P/B | 0.35 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)3.35
EY19.79%
EPS(NY)3.58
Fwd EY21.15%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)8.59
OCFY50.75%
SpS23.29
BVpS47.92
TBVpS18.54
PEG (NY)1.01
PEG (5Y)0.99
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%