FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) Stock Fundamental Analysis
TSX:FTS-PR-M - CA3495537688
23.6 CAD
+0.14 (+0.6%)
Overall FTS-PR-M gets a fundamental rating of 4 out of 10. We evaluated FTS-PR-M against 18 industry peers in the Electric Utilities industry. FTS-PR-M scores excellent on profitability, but there are concerns on its financial health. FTS-PR-M has a correct valuation and a medium growth rate. Finally FTS-PR-M also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FTS-PR-M was profitable.
FTS-PR-M had a positive operating cash flow in the past year.
FTS-PR-M had positive earnings in each of the past 5 years.
Each year in the past 5 years FTS-PR-M had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FTS-PR-M (2.33%) is better than 61.11% of its industry peers.
With a decent Return On Equity value of 7.19%, FTS-PR-M is doing good in the industry, outperforming 61.11% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.27%, FTS-PR-M is doing good in the industry, outperforming 66.67% 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 4.02%.
The 3 year average ROIC (4.10%) for FTS-PR-M is below the current ROIC(4.27%), indicating increased profibility in the last year.
| 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-M has a Profit Margin of 14.31%. This is in the better half of the industry: FTS-PR-M outperforms 61.11% of its industry peers.
FTS-PR-M's Profit Margin has declined in the last couple of years.
FTS-PR-M's Operating Margin of 28.90% is fine compared to the rest of the industry. FTS-PR-M outperforms 72.22% 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 Gross Margin of 72.37%. This is in the better half of the industry: FTS-PR-M outperforms 72.22% of its industry peers.
FTS-PR-M's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.9% | ||
| 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-M 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-M has more shares outstanding
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.
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's Altman-Z score of 0.52 is fine compared to the rest of the industry. FTS-PR-M outperforms 72.22% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS-PR-M has dependencies on debt financing.
The Debt to Equity ratio of FTS-PR-M (1.33) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.52 |
ROIC/WACC0.87
WACC4.93%
2.3 Liquidity
A Current Ratio of 0.58 indicates that FTS-PR-M may have some problems paying its short term obligations.
The Current ratio of FTS-PR-M (0.58) is worse than 77.78% of its industry peers.
FTS-PR-M has a Quick Ratio of 0.58. This is a bad value and indicates that FTS-PR-M is not financially healthy enough and could expect problems in meeting its short term obligations.
FTS-PR-M has a Quick ratio of 0.47. This is in the lower half of the industry: FTS-PR-M underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.86% over the past year.
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.
The Revenue has been growing slightly by 5.55% on average over the past years.
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-M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.71% yearly.
Based on estimates for the next years, FTS-PR-M will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.71%
Revenue Next Year8.67%
Revenue Next 2Y6.7%
Revenue Next 3Y9.98%
Revenue Next 5Y3.61%
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
With a Price/Earnings ratio of 6.86, the valuation of FTS-PR-M can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of FTS-PR-M indicates a slightly more expensive valuation: FTS-PR-M is more expensive than 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FTS-PR-M to the average of the S&P500 Index (27.13), we can say FTS-PR-M is valued rather cheaply.
The Price/Forward Earnings ratio is 6.51, which indicates a rather cheap valuation of FTS-PR-M.
The rest of the industry has a similar Price/Forward Earnings ratio as FTS-PR-M.
When comparing the Price/Forward Earnings ratio of FTS-PR-M to the average of the S&P500 Index (22.76), we can say FTS-PR-M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 6.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS-PR-M is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FTS-PR-M has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.92
PEG (5Y)1.35
EPS Next 2Y5.14%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
FTS-PR-M has a Yearly Dividend Yield of 7.05%, which is a nice return.
Compared to an average industry Dividend Yield of 5.89, FTS-PR-M pays a better dividend. On top of this FTS-PR-M pays more dividend than 88.89% of the companies listed in the same industry.
FTS-PR-M's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
5.2 History
The dividend of FTS-PR-M has a limited annual growth rate of 5.61%.
FTS-PR-M has been paying a dividend for at least 10 years, so it has 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
FTS-PR-M pays out 49.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
FTS-PR-M'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-M (8/29/2025, 7:00:00 PM)
23.6
+0.14 (+0.6%)
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 Cap11.88B
Analysts55.83
Price Target23.67 (0.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP49.62%
Div Incr Years0
Div Non Decr Years3
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)-7.05%
PT rev (3m)12.31%
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 | 6.86 | ||
| Fwd PE | 6.51 | ||
| P/S | 1 | ||
| P/FCF | N/A | ||
| P/OCF | 2.75 | ||
| P/B | 0.5 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 8.3 |
EPS(TTM)3.44
EY14.58%
EPS(NY)3.63
Fwd EY15.36%
FCF(TTM)-3.5
FCFYN/A
OCF(TTM)8.57
OCFY36.32%
SpS23.58
BVpS46.91
TBVpS18.87
PEG (NY)0.92
PEG (5Y)1.35
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 | 0.52 |
F-Score5
WACC4.93%
ROIC/WACC0.87
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 5Y5.71%
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 5Y3.61%
EBIT growth 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y17.8%
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%