FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) Stock Fundamental Analysis
TSX:FTS-PR-M - Toronto Stock Exchange - CA3495537688 - Currency: CAD
We assign a fundamental rating of 3 out of 10 to FTS-PR-M. FTS-PR-M was compared to 19 industry peers in the Electric Utilities industry. While FTS-PR-M is still in line with the averages on profitability rating, there are concerns on its financial health. FTS-PR-M is valued correctly, but it does not seem to be growing. 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.
In the past year FTS-PR-M had a positive cash flow from operations.
Each year in the past 5 years FTS-PR-M has been profitable.
FTS-PR-M had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTS-PR-M has a Return On Assets of 2.20%. This is comparable to the rest of the industry: FTS-PR-M outperforms 57.89% of its industry peers.
FTS-PR-M has a Return On Equity of 6.82%. This is amonst the worse of the industry: FTS-PR-M underperforms 89.47% of its industry peers.
With a decent Return On Invested Capital value of 4.04%, FTS-PR-M is doing good in the industry, outperforming 63.16% of the companies in the same industry.
FTS-PR-M had an Average Return On Invested Capital over the past 3 years of 4.10%. This 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 63.16% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-M has declined.
FTS-PR-M has a better Operating Margin (28.73%) than 68.42% 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's Gross Margin of 72.03% is fine compared to the rest of the industry. FTS-PR-M outperforms 68.42% of its industry peers.
In the last couple of years the Gross Margin of FTS-PR-M has remained more or less at the same level.
| 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-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
FTS-PR-M has more shares outstanding than it did 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 0.51, we must say that FTS-PR-M is in the distress zone and has some risk of bankruptcy.
FTS-PR-M has a Altman-Z score (0.51) 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.
With a Debt to Equity ratio value of 1.37, FTS-PR-M perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.51 |
ROIC/WACC0.62
WACC6.55%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FTS-PR-M may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, FTS-PR-M is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that FTS-PR-M may have some problems paying its short term obligations.
The Quick ratio of FTS-PR-M (0.63) is better than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
FTS-PR-M shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.72%.
The Earnings Per Share has been growing slightly by 5.08% on average over the past years.
The Revenue has been growing slightly by 3.64% in the past year.
Measured over the past years, FTS-PR-M shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
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.
The Revenue is expected to grow by 3.02% on average over the next years.
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
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-M is valuated cheaply with a Price/Earnings ratio of 6.89.
The rest of the industry has a similar Price/Earnings ratio as FTS-PR-M.
FTS-PR-M is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.44, the valuation of FTS-PR-M can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTS-PR-M is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, FTS-PR-M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.89 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS-PR-M is valued a bit more expensive than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
FTS-PR-M's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.37
PEG (5Y)1.36
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS-PR-M has a Yearly Dividend Yield of 8.08%, which is a nice return.
Compared to an average industry Dividend Yield of 6.61, FTS-PR-M pays a better dividend. On top of this FTS-PR-M pays more dividend than 94.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, FTS-PR-M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
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
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 (6/30/2025, 7:00:00 PM)
23.07
+0.16 (+0.7%)
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 Cap11.57B
Analysts53.04
Price Target24.14 (4.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
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)14.59%
PT rev (3m)9.86%
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 | 6.89 | ||
| Fwd PE | 6.44 | ||
| P/S | 0.99 | ||
| P/FCF | N/A | ||
| P/OCF | 2.67 | ||
| P/B | 0.48 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)3.35
EY14.52%
EPS(NY)3.58
Fwd EY15.52%
FCF(TTM)-2.63
FCFYN/A
OCF(TTM)8.63
OCFY37.39%
SpS23.38
BVpS48.11
TBVpS18.62
PEG (NY)1.37
PEG (5Y)1.36
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 | 0.51 |
F-Score5
WACC6.55%
ROIC/WACC0.62
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%