FORTIS INC - FTSCN 5.469 PERP (FTS-PR-K.CA) Stock Fundamental Analysis
TSX:FTS-PR-K - Toronto Stock Exchange - CA3495537845 - Currency: CAD
FTS-PR-K gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 19 industry peers in the Electric Utilities industry. There are concerns on the financial health of FTS-PR-K while its profitability can be described as average. FTS-PR-K 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-K was profitable.
FTS-PR-K had a positive operating cash flow in the past year.
FTS-PR-K had positive earnings in each of the past 5 years.
Each year in the past 5 years FTS-PR-K had a positive operating cash flow.
1.2 Ratios
FTS-PR-K's Return On Assets of 2.19% is on the low side compared to the rest of the industry. FTS-PR-K is outperformed by 73.68% of its industry peers.
The Return On Equity of FTS-PR-K (6.75%) is worse than 73.68% of its industry peers.
With a decent Return On Invested Capital value of 4.06%, FTS-PR-K is doing good in the industry, outperforming 78.95% of the companies in the same industry.
FTS-PR-K had an Average Return On Invested Capital over the past 3 years of 4.10%. This 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
FTS-PR-K's Profit Margin of 13.96% is fine compared to the rest of the industry. FTS-PR-K outperforms 73.68% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-K has declined.
Looking at the Operating Margin, with a value of 28.61%, FTS-PR-K belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
FTS-PR-K's Operating Margin has been stable in the last couple of years.
FTS-PR-K has a better Gross Margin (71.77%) than 84.21% of its industry peers.
In the last couple of years the Gross Margin of FTS-PR-K 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
FTS-PR-K 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-K has been increased compared to 1 year ago.
The number of shares outstanding for FTS-PR-K has been increased compared to 5 years ago.
The debt/assets ratio for FTS-PR-K is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that FTS-PR-K is in the distress zone and has some risk of bankruptcy.
FTS-PR-K has a Altman-Z score of 0.48. This is in the lower half of the industry: FTS-PR-K underperforms 68.42% of its industry peers.
FTS-PR-K has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
FTS-PR-K has a Debt to Equity ratio of 1.33. This is in the better half of the industry: FTS-PR-K outperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.84
WACC4.81%
2.3 Liquidity
A Current Ratio of 0.63 indicates that FTS-PR-K may have some problems paying its short term obligations.
With a Current ratio value of 0.63, FTS-PR-K is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
FTS-PR-K has a Quick Ratio of 0.63. This is a bad value and indicates that FTS-PR-K is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.52, FTS-PR-K is doing worse than 68.42% of the companies in the same industry.
| 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-K shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
FTS-PR-K shows a decrease in Revenue. In the last year, the revenue decreased by -0.08%.
The Revenue has been growing slightly by 5.55% on average over the past years.
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
The Earnings Per Share is expected to grow by 5.09% on average over the next years.
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 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
The Price/Earnings ratio is 6.40, which indicates a rather cheap valuation of FTS-PR-K.
Compared to the rest of the industry, the Price/Earnings ratio of FTS-PR-K is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FTS-PR-K to the average of the S&P500 Index (25.91), we can say FTS-PR-K is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.99, the valuation of FTS-PR-K can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTS-PR-K indicates a somewhat cheap valuation: FTS-PR-K is cheaper than 63.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.77, FTS-PR-K is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.4 | ||
| Fwd PE | 5.99 |
4.2 Price Multiples
FTS-PR-K's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.45 |
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-K may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)1.26
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.69%, FTS-PR-K has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.19, FTS-PR-K is paying slightly less dividend.
FTS-PR-K's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
5.2 History
The dividend of FTS-PR-K has a limited annual growth rate of 5.61%.
FTS-PR-K has been paying a dividend for at least 10 years, so it has a reliable track record.
FTS-PR-K has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.61%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
50.93% of the earnings are spent on dividend by FTS-PR-K. This is a bit on the high side, but may be sustainable.
FTS-PR-K'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-K (5/26/2025, 7:00:00 PM)
21.45
+0.35 (+1.66%)
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 Cap10.76B
Analysts51.82
Price Target20.18 (-5.92%)
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 Years1
Div Non Decr Years4
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)-5.65%
PT rev (3m)-6.9%
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 | 6.4 | ||
| Fwd PE | 5.99 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 2.77 | ||
| P/B | 0.45 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 8.45 |
EPS(TTM)3.35
EY15.62%
EPS(NY)3.58
Fwd EY16.69%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY36.08%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)1.28
PEG (5Y)1.26
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
WACC4.81%
ROIC/WACC0.84
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%