FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) Stock Fundamental Analysis
TSX:FTS-PR-M - Toronto Stock Exchange - CA3495537688 - Currency: CAD
FTS-PR-M gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 industry peers in the Electric Utilities industry. FTS-PR-M has a medium profitability rating, but doesn't score so well on its financial health evaluation. FTS-PR-M 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-M had positive earnings in the past year.
FTS-PR-M had a positive operating cash flow in the past year.
In the past 5 years FTS-PR-M has always been profitable.
Each year in the past 5 years FTS-PR-M had a positive operating cash flow.
1.2 Ratios
FTS-PR-M has a better Return On Assets (2.20%) than 63.16% of its industry peers.
Looking at the Return On Equity, with a value of 6.82%, FTS-PR-M is doing worse than 84.21% of the companies in the same industry.
The Return On Invested Capital of FTS-PR-M (4.04%) is better than 68.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTS-PR-M 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-M (14.03%) is better than 68.42% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-M has declined.
Looking at the Operating Margin, with a value of 28.73%, FTS-PR-M is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
FTS-PR-M's Operating Margin has been stable in the last couple of years.
FTS-PR-M has a Gross Margin of 72.03%. This is in the better half of the industry: FTS-PR-M outperforms 73.68% of its industry peers.
FTS-PR-M'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-M is destroying value.
The number of shares outstanding for FTS-PR-M has been increased compared to 1 year ago.
Compared to 5 years ago, FTS-PR-M has more shares outstanding
FTS-PR-M has a worse debt/assets ratio than last year.
2.2 Solvency
FTS-PR-M has an Altman-Z score of 0.52. This is a bad value and indicates that FTS-PR-M is not financially healthy and even has some risk of bankruptcy.
FTS-PR-M has a Altman-Z score (0.52) which is in line with its industry peers.
FTS-PR-M has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
FTS-PR-M has a Debt to Equity ratio of 1.37. This is in the better half of the industry: FTS-PR-M outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.52 |
ROIC/WACC0.83
WACC4.89%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FTS-PR-M may have some problems paying its short term obligations.
FTS-PR-M has a better Current ratio (0.76) than 68.42% 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 Quick ratio of 0.63. This is in the better half of the industry: FTS-PR-M outperforms 68.42% 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-M shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
FTS-PR-M shows a small growth in Revenue. In the last year, the Revenue has grown by 3.64%.
FTS-PR-M shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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
Based on estimates for the next years, FTS-PR-M will show a small growth in Earnings Per Share. The EPS will grow by 5.31% on average per year.
FTS-PR-M is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.02% yearly.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y3.02%
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
Based on the Price/Earnings ratio of 7.11, the valuation of FTS-PR-M can be described as very cheap.
FTS-PR-M's Price/Earnings is on the same level as the industry average.
FTS-PR-M is valuated cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.65, the valuation of FTS-PR-M can be described as very cheap.
FTS-PR-M's Price/Forward Earnings ratio is in line with the industry average.
FTS-PR-M's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
FTS-PR-M's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FTS-PR-M is more expensive than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.56 |
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)1.42
PEG (5Y)1.4
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS-PR-M has a Yearly Dividend Yield of 3.81%.
Compared to an average industry Dividend Yield of 4.99, 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
The dividend of FTS-PR-M has a limited annual growth rate of 5.61%.
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)5.61%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
50.67% of the earnings are spent on dividend by FTS-PR-M. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-M 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-M (7/25/2025, 7:00:00 PM)
23.82
+0.04 (+0.17%)
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 Cap12.00B
Analysts54.17
Price Target25.46 (6.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.67%
Div Incr Years0
Div Non Decr Years3
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)10.67%
PT rev (3m)16.04%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 6.65 | ||
| P/S | 1.02 | ||
| P/FCF | N/A | ||
| P/OCF | 2.77 | ||
| P/B | 0.5 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 8.56 |
EPS(TTM)3.35
EY14.06%
EPS(NY)3.58
Fwd EY15.03%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)8.59
OCFY36.07%
SpS23.29
BVpS47.92
TBVpS18.54
PEG (NY)1.42
PEG (5Y)1.4
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 | 0.52 |
F-Score5
WACC4.89%
ROIC/WACC0.83
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 5Y5.31%
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 5Y16.93%
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%