FORTIS INC - FTSCN 4 3/4 PERP (FTS-PR-J.CA) Stock Fundamental Analysis
TSX:FTS-PR-J - Toronto Stock Exchange - CA3495537928 - Currency: CAD
Overall FTS-PR-J gets a fundamental rating of 4 out of 10. We evaluated FTS-PR-J against 19 industry peers in the Electric Utilities industry. While FTS-PR-J has a great profitability rating, there are quite some concerns on its financial health. FTS-PR-J 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-J was profitable.
In the past year FTS-PR-J had a positive cash flow from operations.
Each year in the past 5 years FTS-PR-J has been profitable.
Each year in the past 5 years FTS-PR-J had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FTS-PR-J (2.19%) is better than 78.95% of its industry peers.
FTS-PR-J has a better Return On Equity (6.75%) than 78.95% 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.
The Average Return On Invested Capital over the past 3 years for FTS-PR-J is in line with the industry average of 3.62%.
| 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
With an excellent Profit Margin value of 13.96%, FTS-PR-J belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
In the last couple of years the Profit Margin of FTS-PR-J has declined.
The Operating Margin of FTS-PR-J (28.61%) is better than 89.47% of its industry peers.
In the last couple of years the Operating Margin of FTS-PR-J has remained more or less at the same level.
FTS-PR-J has a Gross Margin of 71.77%. This is amongst the best in the industry. FTS-PR-J outperforms 89.47% of its industry peers.
In the last couple of years the Gross Margin of FTS-PR-J 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS-PR-J is destroying value.
FTS-PR-J has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FTS-PR-J has more shares outstanding
FTS-PR-J has a worse debt/assets ratio than last year.
2.2 Solvency
FTS-PR-J has an Altman-Z score of 0.48. This is a bad value and indicates that FTS-PR-J is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.48, FTS-PR-J perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
FTS-PR-J has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
FTS-PR-J has a Debt to Equity ratio of 1.33. This is amongst the best in the industry. FTS-PR-J outperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.87
WACC4.68%
2.3 Liquidity
A Current Ratio of 0.63 indicates that FTS-PR-J may have some problems paying its short term obligations.
FTS-PR-J has a worse Current ratio (0.63) 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 has a Quick ratio of 0.52. This is in the lower half of the industry: FTS-PR-J underperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FTS-PR-J shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.15%.
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.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)6.15%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%15.28%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%2.22%
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.
The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.09%
Revenue Next Year4.93%
Revenue Next 2Y4.5%
Revenue Next 3Y3.94%
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 6.22, which indicates a rather cheap valuation of FTS-PR-J.
78.95% of the companies in the same industry are more expensive than FTS-PR-J, based on the Price/Earnings ratio.
FTS-PR-J's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.75.
Based on the Price/Forward Earnings ratio of 5.92, the valuation of FTS-PR-J can be described as very cheap.
68.42% of the companies in the same industry are more expensive than FTS-PR-J, based on the Price/Forward Earnings ratio.
FTS-PR-J's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.22 | ||
| Fwd PE | 5.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS-PR-J indicates a somewhat cheap valuation: FTS-PR-J is cheaper than 73.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.35 |
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.
The decent profitability rating of FTS-PR-J may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)1.22
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS-PR-J has a Yearly Dividend Yield of 3.66%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.21, FTS-PR-J is paying slightly less dividend.
FTS-PR-J's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
The dividend of FTS-PR-J has a limited annual growth rate of 5.61%.
FTS-PR-J has paid a dividend for at least 10 years, which is 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
50.93% of the earnings are spent on dividend by FTS-PR-J. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-J 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-J (5/1/2025, 7:00:00 PM)
20.4
+0.1 (+0.49%)
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 Cap10.23B
Analysts51.82
Price Target20.16 (-1.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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)-7.29%
PT rev (3m)-6.06%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)3.82%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.64%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.22 | ||
| Fwd PE | 5.92 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | 2.64 | ||
| P/B | 0.43 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)3.28
EY16.08%
EPS(NY)3.44
Fwd EY16.88%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY37.94%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)1.24
PEG (5Y)1.22
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)6.15%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%15.28%
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%2.22%
Revenue Next Year4.93%
Revenue Next 2Y4.5%
Revenue Next 3Y3.94%
Revenue Next 5Y2.93%
EBIT growth 1Y6.74%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.93%
EBIT Next 3Y25.61%
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%