FORTIS INC - FTSCN 4 3/4 PERP (FTS-PR-J.CA) Stock Fundamental Analysis
TSX:FTS-PR-J - Toronto Stock Exchange - CA3495537928 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to FTS-PR-J. FTS-PR-J was compared to 19 industry peers in the Electric Utilities industry. There are concerns on the financial health of FTS-PR-J while its profitability can be described as average. FTS-PR-J 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-J was profitable.
In the past year FTS-PR-J had a positive cash flow from operations.
In the past 5 years FTS-PR-J has always been profitable.
In the past 5 years FTS-PR-J always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FTS-PR-J (2.19%) is worse than 68.42% of its industry peers.
FTS-PR-J has a Return On Equity of 6.75%. This is in the lower half of the industry: FTS-PR-J underperforms 68.42% of its industry peers.
FTS-PR-J's Return On Invested Capital of 4.06% is amongst the best of the industry. FTS-PR-J outperforms 84.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTS-PR-J 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
The Profit Margin of FTS-PR-J (13.96%) is better than 78.95% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-J has declined.
With an excellent Operating Margin value of 28.61%, FTS-PR-J belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of FTS-PR-J has remained more or less at the same level.
With an excellent Gross Margin value of 71.77%, FTS-PR-J belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
FTS-PR-J's Gross Margin has been stable in the last couple of years.
| 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-J 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-J has been increased compared to 1 year ago.
FTS-PR-J has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FTS-PR-J has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that FTS-PR-J is in the distress zone and has some risk of bankruptcy.
FTS-PR-J has a Altman-Z score of 0.48. This is in the lower half of the industry: FTS-PR-J underperforms 73.68% of its industry peers.
FTS-PR-J has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.33, FTS-PR-J belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.87
WACC4.68%
2.3 Liquidity
FTS-PR-J has a Current Ratio of 0.63. This is a bad value and indicates that FTS-PR-J is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of FTS-PR-J (0.63) is worse than 63.16% of its industry peers.
FTS-PR-J has a Quick Ratio of 0.63. This is a bad value and indicates that FTS-PR-J is not financially healthy enough and could expect problems in meeting its short term obligations.
FTS-PR-J's Quick ratio of 0.52 is on the low side compared to the rest of the industry. FTS-PR-J is outperformed by 63.16% 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.
Measured over the past 5 years, FTS-PR-J shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
Looking at the last year, FTS-PR-J shows a decrease in Revenue. The Revenue has decreased by -0.08% in the last year.
FTS-PR-J 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
FTS-PR-J is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.09% yearly.
Based on estimates for the next years, FTS-PR-J will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
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
With a Price/Earnings ratio of 6.23, the valuation of FTS-PR-J can be described as very cheap.
Based on the Price/Earnings ratio, FTS-PR-J is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FTS-PR-J to the average of the S&P500 Index (25.82), we can say FTS-PR-J is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.83, the valuation of FTS-PR-J can be described as very cheap.
FTS-PR-J's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FTS-PR-J is cheaper than 68.42% of the companies in the same industry.
FTS-PR-J is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.23 | ||
| Fwd PE | 5.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FTS-PR-J.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.39 |
4.3 Compensation for Growth
FTS-PR-J's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FTS-PR-J has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)1.23
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS-PR-J has a Yearly Dividend Yield of 3.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.22, FTS-PR-J is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, FTS-PR-J pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
5.2 History
The dividend of FTS-PR-J has a limited annual growth rate of 5.61%.
FTS-PR-J has been paying a dividend for at least 10 years, so it has a reliable track record.
FTS-PR-J has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.61%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
FTS-PR-J pays out 50.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
FTS-PR-J's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.93%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS-PR-J (5/23/2025, 7:00:00 PM)
20.86
+0.05 (+0.24%)
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 Cap10.46B
Analysts51.82
Price Target20.77 (-0.43%)
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 Years10
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)-2.22%
PT rev (3m)-2.1%
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 | 6.23 | ||
| Fwd PE | 5.83 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 2.7 | ||
| P/B | 0.44 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 8.39 |
EPS(TTM)3.35
EY16.06%
EPS(NY)3.58
Fwd EY17.16%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY37.1%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)1.24
PEG (5Y)1.23
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 | 0.48 |
F-Score4
WACC4.68%
ROIC/WACC0.87
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%