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FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) Stock Fundamental Analysis

TSX:FTS-PR-M - Toronto Stock Exchange - CA3495537688 - Currency: CAD

21.59  +0.06 (+0.28%)

Fundamental Rating

4

Overall FTS-PR-M gets a fundamental rating of 4 out of 10. We evaluated FTS-PR-M against 19 industry peers in the Electric Utilities industry. While FTS-PR-M has a great profitability rating, there are quite some concerns on its financial health. FTS-PR-M has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

FTS-PR-M had positive earnings in the past year.
In the past year FTS-PR-M had a positive cash flow from operations.
FTS-PR-M had positive earnings in each of the past 5 years.
FTS-PR-M had a positive operating cash flow in each of the past 5 years.
FTS-PR-M.CA Yearly Net Income VS EBIT VS OCF VS FCFFTS-PR-M.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B 3B

1.2 Ratios

The Return On Assets of FTS-PR-M (2.28%) is better than 68.42% of its industry peers.
FTS-PR-M has a Return On Equity of 7.07%. This is in the better half of the industry: FTS-PR-M outperforms 68.42% of its industry peers.
With a decent Return On Invested Capital value of 4.17%, FTS-PR-M is doing good in the industry, outperforming 73.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FTS-PR-M is in line with the industry average of 3.96%.
The 3 year average ROIC (4.03%) for FTS-PR-M is below the current ROIC(4.17%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.28%
ROE 7.07%
ROIC 4.17%
ROA(3y)2.16%
ROA(5y)2.35%
ROE(3y)6.57%
ROE(5y)7.02%
ROIC(3y)4.03%
ROIC(5y)4.05%
FTS-PR-M.CA Yearly ROA, ROE, ROICFTS-PR-M.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8

1.3 Margins

FTS-PR-M has a better Profit Margin (13.90%) than 78.95% of its industry peers.
FTS-PR-M's Profit Margin has been stable in the last couple of years.
The Operating Margin of FTS-PR-M (28.02%) is better than 78.95% of its industry peers.
In the last couple of years the Operating Margin of FTS-PR-M has remained more or less at the same level.
FTS-PR-M has a better Gross Margin (70.66%) than 78.95% of its industry peers.
FTS-PR-M's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.02%
PM (TTM) 13.9%
GM 70.66%
OM growth 3Y-1.56%
OM growth 5Y-1.02%
PM growth 3Y-1.13%
PM growth 5Y-0.05%
GM growth 3Y-1.94%
GM growth 5Y-0.87%
FTS-PR-M.CA Yearly Profit, Operating, Gross MarginsFTS-PR-M.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS-PR-M is destroying value.
The number of shares outstanding for FTS-PR-M has been increased compared to 1 year ago.
The number of shares outstanding for FTS-PR-M has been increased compared to 5 years ago.
The debt/assets ratio for FTS-PR-M is higher compared to a year ago.
FTS-PR-M.CA Yearly Shares OutstandingFTS-PR-M.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
FTS-PR-M.CA Yearly Total Debt VS Total AssetsFTS-PR-M.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

Based on the Altman-Z score of 0.52, we must say that FTS-PR-M is in the distress zone and has some risk of bankruptcy.
FTS-PR-M has a better Altman-Z score (0.52) than 68.42% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that FTS-PR-M has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.34, FTS-PR-M is doing good in the industry, outperforming 68.42% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF N/A
Altman-Z 0.52
ROIC/WACC0.84
WACC4.95%
FTS-PR-M.CA Yearly LT Debt VS Equity VS FCFFTS-PR-M.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B 25B

2.3 Liquidity

A Current Ratio of 0.74 indicates that FTS-PR-M may have some problems paying its short term obligations.
FTS-PR-M has a better Current ratio (0.74) than 73.68% of its industry peers.
A Quick Ratio of 0.63 indicates that FTS-PR-M may have some problems paying its short term obligations.
FTS-PR-M has a better Quick ratio (0.63) than 73.68% of its industry peers.
Industry RankSector Rank
Current Ratio 0.74
Quick Ratio 0.63
FTS-PR-M.CA Yearly Current Assets VS Current LiabilitesFTS-PR-M.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.59% over the past year.
The Earnings Per Share has been growing slightly by 4.58% on average over the past years.
The Revenue has decreased by -3.02% in the past year.
Measured over the past years, FTS-PR-M shows a small growth in Revenue. The Revenue has been growing by 6.54% on average per year.
EPS 1Y (TTM)2.59%
EPS 3Y6.2%
EPS 5Y4.58%
EPS Q2Q%1.19%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y8.83%
Revenue growth 5Y6.54%
Sales Q2Q%1.91%

3.2 Future

FTS-PR-M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.74% yearly.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y6.44%
EPS Next 2Y5.15%
EPS Next 3Y5.02%
EPS Next 5Y5.74%
Revenue Next Year2.54%
Revenue Next 2Y3.81%
Revenue Next 3Y3.7%
Revenue Next 5Y3.6%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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.
FTS-PR-M.CA Yearly Revenue VS EstimatesFTS-PR-M.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
FTS-PR-M.CA Yearly EPS VS EstimatesFTS-PR-M.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 6.81 indicates a rather cheap valuation of FTS-PR-M.
68.42% of the companies in the same industry are more expensive than FTS-PR-M, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.27. FTS-PR-M is valued rather cheaply when compared to this.
FTS-PR-M is valuated cheaply with a Price/Forward Earnings ratio of 6.32.
FTS-PR-M's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FTS-PR-M to the average of the S&P500 Index (96.48), we can say FTS-PR-M is valued rather cheaply.
Industry RankSector Rank
PE 6.81
Fwd PE 6.32
FTS-PR-M.CA Price Earnings VS Forward Price EarningsFTS-PR-M.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FTS-PR-M is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.2
FTS-PR-M.CA Per share dataFTS-PR-M.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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-M may justify a higher PE ratio.
PEG (NY)1.06
PEG (5Y)1.49
EPS Next 2Y5.15%
EPS Next 3Y5.02%

5

5. Dividend

5.1 Amount

FTS-PR-M has a Yearly Dividend Yield of 3.95%.
Compared to an average industry Dividend Yield of 4.56, FTS-PR-M is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, FTS-PR-M pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.95%

5.2 History

The dividend of FTS-PR-M has a limited annual growth rate of 5.03%.
FTS-PR-M has paid a dividend for at least 10 years, which is a reliable track record.
FTS-PR-M has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.03%
Div Incr Years0
Div Non Decr Years3
FTS-PR-M.CA Yearly Dividends per shareFTS-PR-M.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

FTS-PR-M pays out 50.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-M is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP50.6%
EPS Next 2Y5.15%
EPS Next 3Y5.02%
FTS-PR-M.CA Yearly Income VS Free CF VS DividendFTS-PR-M.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B 1.5B
FTS-PR-M.CA Dividend Payout.FTS-PR-M.CA Dividend Payout, showing the Payout Ratio.FTS-PR-M.CA Dividend Payout.PayoutRetained Earnings

FORTIS INC - FTSCN 5.493 PERP

TSX:FTS-PR-M (2/13/2025, 7:00:00 PM)

21.59

+0.06 (+0.28%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)02-14 2025-02-14/bmo
Inst Owners57.94%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap10.74B
Analysts51
Price Target21.71 (0.56%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.95%
Yearly Dividend1.58
Dividend Growth(5Y)5.03%
DP50.6%
Div Incr Years0
Div Non Decr Years3
Ex-Date02-18 2025-02-18 (0.3433125)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.11%
Min EPS beat(2)1.71%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)2.14%
Min EPS beat(4)1.24%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)2.75%
EPS beat(12)8
Avg EPS beat(12)0.63%
EPS beat(16)10
Avg EPS beat(16)0.1%
Revenue beat(2)0
Avg Revenue beat(2)-4.13%
Min Revenue beat(2)-5.78%
Max Revenue beat(2)-2.48%
Revenue beat(4)0
Avg Revenue beat(4)-4.9%
Min Revenue beat(4)-7.48%
Max Revenue beat(4)-2.48%
Revenue beat(8)2
Avg Revenue beat(8)0.08%
Revenue beat(12)6
Avg Revenue beat(12)2.57%
Revenue beat(16)9
Avg Revenue beat(16)2.13%
PT rev (1m)-1.48%
PT rev (3m)5.05%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-0.94%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)10.63%
Revenue NQ rev (3m)12.46%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.79%
Valuation
Industry RankSector Rank
PE 6.81
Fwd PE 6.32
P/S 0.94
P/FCF N/A
P/OCF 2.93
P/B 0.48
P/tB 1.26
EV/EBITDA 8.2
EPS(TTM)3.17
EY14.68%
EPS(NY)3.42
Fwd EY15.82%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)7.37
OCFY34.14%
SpS23.01
BVpS45.23
TBVpS17.14
PEG (NY)1.06
PEG (5Y)1.49
Profitability
Industry RankSector Rank
ROA 2.28%
ROE 7.07%
ROCE 5.02%
ROIC 4.17%
ROICexc 4.23%
ROICexgc 5.44%
OM 28.02%
PM (TTM) 13.9%
GM 70.66%
FCFM N/A
ROA(3y)2.16%
ROA(5y)2.35%
ROE(3y)6.57%
ROE(5y)7.02%
ROIC(3y)4.03%
ROIC(5y)4.05%
ROICexc(3y)4.05%
ROICexc(5y)4.08%
ROICexgc(3y)5.33%
ROICexgc(5y)5.43%
ROCE(3y)4.86%
ROCE(5y)4.89%
ROICexcg growth 3Y0.82%
ROICexcg growth 5Y-0.17%
ROICexc growth 3Y1.94%
ROICexc growth 5Y1.26%
OM growth 3Y-1.56%
OM growth 5Y-1.02%
PM growth 3Y-1.13%
PM growth 5Y-0.05%
GM growth 3Y-1.94%
GM growth 5Y-0.87%
F-Score6
Asset Turnover0.16
Health
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF N/A
Debt/EBITDA 5.93
Cap/Depr 253.85%
Cap/Sales 41.72%
Interest Coverage 250
Cash Conversion 72.05%
Profit Quality N/A
Current Ratio 0.74
Quick Ratio 0.63
Altman-Z 0.52
F-Score6
WACC4.95%
ROIC/WACC0.84
Cap/Depr(3y)230.61%
Cap/Depr(5y)250.05%
Cap/Sales(3y)35.68%
Cap/Sales(5y)38.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.59%
EPS 3Y6.2%
EPS 5Y4.58%
EPS Q2Q%1.19%
EPS Next Y6.44%
EPS Next 2Y5.15%
EPS Next 3Y5.02%
EPS Next 5Y5.74%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y8.83%
Revenue growth 5Y6.54%
Sales Q2Q%1.91%
Revenue Next Year2.54%
Revenue Next 2Y3.81%
Revenue Next 3Y3.7%
Revenue Next 5Y3.6%
EBIT growth 1Y4.87%
EBIT growth 3Y7.13%
EBIT growth 5Y5.45%
EBIT Next Year74.2%
EBIT Next 3Y25.2%
EBIT Next 5Y17.1%
FCF growth 1Y-38.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.46%
OCF growth 3Y9.49%
OCF growth 5Y6.49%