FORTIS INC - FTSCN 5.469 PERP (FTS-PR-K.CA) Stock Fundamental Analysis
TSX:FTS-PR-K - Toronto Stock Exchange - CA3495537845 - Currency: CAD
Taking everything into account, FTS-PR-K scores 4 out of 10 in our fundamental rating. FTS-PR-K was compared to 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
FTS-PR-K had positive earnings in the past year.
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.
FTS-PR-K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FTS-PR-K (2.20%) is better than 73.68% of its industry peers.
With a Return On Equity value of 6.82%, FTS-PR-K is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
FTS-PR-K's Return On Invested Capital of 4.04% is fine compared to the rest of the industry. FTS-PR-K outperforms 78.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTS-PR-K 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
The Profit Margin of FTS-PR-K (14.03%) is better than 78.95% of its industry peers.
FTS-PR-K's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 28.73%, FTS-PR-K belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
In the last couple of years the Operating Margin of FTS-PR-K has remained more or less at the same level.
The Gross Margin of FTS-PR-K (72.03%) is better than 84.21% of its industry peers.
FTS-PR-K'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS-PR-K is destroying value.
FTS-PR-K has more shares outstanding than it did 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
FTS-PR-K has an Altman-Z score of 0.50. This is a bad value and indicates that FTS-PR-K is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.50, FTS-PR-K perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
FTS-PR-K has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
FTS-PR-K has a Debt to Equity ratio of 1.37. This is in the better half of the industry: FTS-PR-K outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.5 |
ROIC/WACC0.84
WACC4.79%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FTS-PR-K may have some problems paying its short term obligations.
The Current ratio of FTS-PR-K (0.76) is better than 78.95% of its industry peers.
A Quick Ratio of 0.63 indicates that FTS-PR-K may have some problems paying its short term obligations.
The Quick ratio of FTS-PR-K (0.63) is better than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
FTS-PR-K shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.72%.
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.
Looking at the last year, FTS-PR-K shows a small growth in Revenue. The Revenue has grown by 3.64% in the last year.
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)3.64%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
3.2 Future
FTS-PR-K 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 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 6.44, the valuation of FTS-PR-K can be described as very cheap.
FTS-PR-K's Price/Earnings ratio is a bit cheaper when compared to the industry. FTS-PR-K is cheaper than 63.16% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, FTS-PR-K is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.02, 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.
When comparing the Price/Forward Earnings ratio of FTS-PR-K to the average of the S&P500 Index (22.15), we can say FTS-PR-K is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 6.02 |
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 | 8.34 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FTS-PR-K has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)1.27
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.70%, FTS-PR-K has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.17, FTS-PR-K is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, FTS-PR-K pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
The dividend of FTS-PR-K has a limited annual growth rate of 5.61%.
FTS-PR-K has paid a dividend for at least 10 years, which is 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
FTS-PR-K 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-K 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-K (5/30/2025, 7:00:00 PM)
21.56
+0.04 (+0.19%)
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 Cap10.82B
Analysts51.82
Price Target20.18 (-6.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.67%
Div Incr Years1
Div Non Decr Years4
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)0%
PT rev (3m)-6.9%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-3.47%
Revenue NQ rev (3m)-5.23%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 6.02 | ||
| P/S | 0.92 | ||
| P/FCF | N/A | ||
| P/OCF | 2.5 | ||
| P/B | 0.45 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 8.34 |
EPS(TTM)3.35
EY15.54%
EPS(NY)3.58
Fwd EY16.61%
FCF(TTM)-2.63
FCFYN/A
OCF(TTM)8.63
OCFY40.01%
SpS23.38
BVpS48.11
TBVpS18.62
PEG (NY)1.28
PEG (5Y)1.27
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 | 0.5 |
F-Score5
WACC4.79%
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)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 5Y2.93%
EBIT growth 1Y7.64%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y16.63%
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%