FORTIS INC - FTSCN 5.469 PERP (FTS-PR-K.CA) Stock Fundamental Analysis
TSX:FTS-PR-K - Toronto Stock Exchange - CA3495537845 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to FTS-PR-K. 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
In the past year FTS-PR-K was profitable.
In the past year FTS-PR-K had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.20%, FTS-PR-K is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 4.04%, FTS-PR-K is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
FTS-PR-K has a Profit Margin of 14.03%. This is in the better half of the industry: FTS-PR-K outperforms 78.95% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-K has declined.
The Operating Margin of FTS-PR-K (28.73%) is better than 84.21% 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.
With an excellent Gross Margin value of 72.03%, FTS-PR-K belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
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
FTS-PR-K has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FTS-PR-K has more shares outstanding than it did 1 year ago.
FTS-PR-K has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FTS-PR-K has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.50, 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 0.50. This is comparable to the rest of the industry: FTS-PR-K outperforms 42.11% of its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that FTS-PR-K has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.37, FTS-PR-K is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.5 |
ROIC/WACC0.63
WACC6.46%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FTS-PR-K may have some problems paying its short term obligations.
FTS-PR-K's Current ratio of 0.76 is fine compared to the rest of the industry. FTS-PR-K outperforms 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.
FTS-PR-K has a Quick ratio of 0.63. This is in the better half of the industry: FTS-PR-K outperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 |
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.
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
The Earnings Per Share is expected to grow by 5.32% on average over the next years.
Based on estimates for the next years, FTS-PR-K will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.32%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y3.02%
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.
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
FTS-PR-K is valuated cheaply with a Price/Earnings ratio of 6.56.
Based on the Price/Earnings ratio, FTS-PR-K is valued a bit cheaper than 63.16% of the companies in the same industry.
When comparing the Price/Earnings ratio of FTS-PR-K to the average of the S&P500 Index (26.65), we can say FTS-PR-K is valued rather cheaply.
The Price/Forward Earnings ratio is 6.14, which indicates a rather cheap valuation of FTS-PR-K.
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 (21.27), we can say FTS-PR-K is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 6.14 |
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 | 8.38 |
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)1.31
PEG (5Y)1.29
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.14%, FTS-PR-K is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, FTS-PR-K pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, FTS-PR-K pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
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
50.67% of the earnings are spent on dividend by FTS-PR-K. 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 (6/23/2025, 7:00:00 PM)
21.98
+0.04 (+0.18%)
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 Cap11.03B
Analysts53.04
Price Target23.82 (8.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
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)18.06%
PT rev (3m)10.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 6.14 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | 2.55 | ||
| P/B | 0.46 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 8.38 |
EPS(TTM)3.35
EY15.24%
EPS(NY)3.58
Fwd EY16.29%
FCF(TTM)-2.63
FCFYN/A
OCF(TTM)8.63
OCFY39.24%
SpS23.38
BVpS48.11
TBVpS18.62
PEG (NY)1.31
PEG (5Y)1.29
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
WACC6.46%
ROIC/WACC0.63
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 5Y5.32%
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 5Y3.02%
EBIT growth 1Y7.64%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y16.94%
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%