FORTIS INC - FTSCN 5.469 PERP (FTS-PR-K.CA) Stock Fundamental Analysis
TSX:FTS-PR-K - CA3495537845
22.94 CAD
+0.09 (+0.39%)
FTS-PR-K gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 18 industry peers in the Electric Utilities industry. While FTS-PR-K has a great profitability rating, there are quite some concerns on its financial health. FTS-PR-K has a correct valuation and a medium growth rate. Finally FTS-PR-K also has an excellent dividend rating.
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.
In the past 5 years FTS-PR-K has always been profitable.
FTS-PR-K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTS-PR-K's Return On Assets of 2.33% is fine compared to the rest of the industry. FTS-PR-K outperforms 72.22% of its industry peers.
Looking at the Return On Equity, with a value of 7.19%, FTS-PR-K is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
FTS-PR-K's Return On Invested Capital of 4.27% is fine compared to the rest of the industry. FTS-PR-K outperforms 77.78% of its industry peers.
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 4.02%.
The last Return On Invested Capital (4.27%) for FTS-PR-K is above the 3 year average (4.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 7.19% | ||
| ROIC | 4.27% |
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 has a better Profit Margin (14.31%) than 72.22% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-K has declined.
FTS-PR-K has a Operating Margin of 28.90%. This is amongst the best in the industry. FTS-PR-K outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of FTS-PR-K has remained more or less at the same level.
FTS-PR-K has a Gross Margin of 72.37%. This is amongst the best in the industry. FTS-PR-K outperforms 83.33% 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 | 28.9% | ||
| PM (TTM) | 14.31% | ||
| GM | 72.37% |
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.
Compared to 1 year ago, FTS-PR-K has more shares outstanding
FTS-PR-K has more shares outstanding than it did 5 years ago.
FTS-PR-K has a worse debt/assets ratio than last year.
2.2 Solvency
FTS-PR-K has an Altman-Z score of 0.51. This is a bad value and indicates that FTS-PR-K is not financially healthy and even has some risk of bankruptcy.
FTS-PR-K has a better Altman-Z score (0.51) than 61.11% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS-PR-K has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.33, FTS-PR-K is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.51 |
ROIC/WACC0.85
WACC5.01%
2.3 Liquidity
FTS-PR-K has a Current Ratio of 0.58. 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.
The Current ratio of FTS-PR-K (0.58) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.47 indicates that FTS-PR-K may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.47, FTS-PR-K is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
FTS-PR-K shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.86%, which is quite good.
The Earnings Per Share has been growing slightly by 5.08% on average over the past years.
The Revenue has been growing slightly by 4.22% in the past year.
Measured over the past years, FTS-PR-K shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)8.86%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%13.43%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
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 5.63% yearly.
FTS-PR-K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.63%
Revenue Next Year8.67%
Revenue Next 2Y6.7%
Revenue Next 3Y9.98%
Revenue Next 5Y3.53%
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
FTS-PR-K is valuated cheaply with a Price/Earnings ratio of 6.67.
The rest of the industry has a similar Price/Earnings ratio as FTS-PR-K.
FTS-PR-K is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.33, 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 66.67% of the companies listed in the same industry.
FTS-PR-K is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 6.33 |
4.2 Price Multiples
FTS-PR-K's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
FTS-PR-K's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of FTS-PR-K may justify a higher PE ratio.
PEG (NY)0.9
PEG (5Y)1.31
EPS Next 2Y5.14%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
FTS-PR-K has a Yearly Dividend Yield of 5.84%, which is a nice return.
Compared to an average industry Dividend Yield of 5.15, FTS-PR-K pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, FTS-PR-K pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
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 49.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
FTS-PR-K's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP49.62%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
TSX:FTS-PR-K (9/5/2025, 7:00:00 PM)
22.94
+0.09 (+0.39%)
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 Cap11.55B
Analysts64.76
Price Target24.11 (5.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP49.62%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.58%
Min EPS beat(2)1.78%
Max EPS beat(2)7.39%
EPS beat(4)4
Avg EPS beat(4)3.2%
Min EPS beat(4)1.1%
Max EPS beat(4)7.39%
EPS beat(8)8
Avg EPS beat(8)2.61%
EPS beat(12)11
Avg EPS beat(12)2.94%
EPS beat(16)11
Avg EPS beat(16)1.01%
Revenue beat(2)1
Avg Revenue beat(2)0.59%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.3%
Revenue beat(4)1
Avg Revenue beat(4)-4.01%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)1.3%
Revenue beat(8)1
Avg Revenue beat(8)-4.67%
Revenue beat(12)4
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)1.34%
PT rev (1m)-2.64%
PT rev (3m)6.66%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)2.3%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.99%
Revenue NY rev (3m)3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 6.33 | ||
| P/S | 0.97 | ||
| P/FCF | N/A | ||
| P/OCF | 2.68 | ||
| P/B | 0.49 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)3.44
EY15%
EPS(NY)3.63
Fwd EY15.81%
FCF(TTM)-3.5
FCFYN/A
OCF(TTM)8.57
OCFY37.37%
SpS23.58
BVpS46.91
TBVpS18.87
PEG (NY)0.9
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 7.19% | ||
| ROCE | 5.15% | ||
| ROIC | 4.27% | ||
| ROICexc | 4.28% | ||
| ROICexgc | 5.43% | ||
| OM | 28.9% | ||
| PM (TTM) | 14.31% | ||
| GM | 72.37% | ||
| 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 | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.78 | ||
| Cap/Depr | 302.94% | ||
| Cap/Sales | 51.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 0.51 |
F-Score5
WACC5.01%
ROIC/WACC0.85
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)8.86%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%13.43%
EPS Next Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.63%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
Revenue Next Year8.67%
Revenue Next 2Y6.7%
Revenue Next 3Y9.98%
Revenue Next 5Y3.53%
EBIT growth 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y17.7%
FCF growth 1Y-175.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.44%
OCF growth 3Y10.12%
OCF growth 5Y7.71%