FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada - TSX:FTS - CA3495531079 - Common Stock
72.32 CAD
+0.16 (+0.22%)
Taking everything into account, FTS scores 4 out of 10 in our fundamental rating. FTS was compared to 18 industry peers in the Electric Utilities industry. While FTS is still in line with the averages on profitability rating, there are concerns on its financial health. FTS is valied quite expensively at the moment, while it does show a decent growth rate. Finally FTS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FTS had positive earnings in the past year.
In the past year FTS had a positive cash flow from operations.
In the past 5 years FTS has always been profitable.
Each year in the past 5 years FTS had a positive operating cash flow.
1.2 Ratios
FTS has a Return On Assets (2.33%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.19%, FTS is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Invested Capital of FTS (4.27%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for FTS is in line with the industry average of 4.02%.
The 3 year average ROIC (4.10%) for FTS 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's Profit Margin of 14.31% is in line compared to the rest of the industry. FTS outperforms 50.00% of its industry peers.
FTS's Profit Margin has declined in the last couple of years.
The Operating Margin of FTS (28.90%) is better than 61.11% of its industry peers.
In the last couple of years the Operating Margin of FTS has remained more or less at the same level.
Looking at the Gross Margin, with a value of 72.37%, FTS is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
In the last couple of years the Gross Margin of FTS has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS is destroying value.
The number of shares outstanding for FTS has been increased compared to 1 year ago.
The number of shares outstanding for FTS has been increased compared to 5 years ago.
FTS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that FTS is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.82, FTS belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
FTS has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
FTS has a Debt to Equity ratio (1.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.72
WACC5.97%
2.3 Liquidity
A Current Ratio of 0.58 indicates that FTS may have some problems paying its short term obligations.
FTS's Current ratio of 0.58 is on the low side compared to the rest of the industry. FTS is outperformed by 88.89% of its industry peers.
A Quick Ratio of 0.47 indicates that FTS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.47, FTS is doing worse than 88.89% of the companies in the same industry.
| 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.
Measured over the past years, FTS shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
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
The Earnings Per Share is expected to grow by 5.70% on average over the next years.
The Revenue is expected to grow by 3.62% on average over the next years.
EPS Next Y6.96%
EPS Next 2Y4.95%
EPS Next 3Y4.98%
EPS Next 5Y5.7%
Revenue Next Year4.8%
Revenue Next 2Y4.44%
Revenue Next 3Y4.85%
Revenue Next 5Y3.62%
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
A Price/Earnings ratio of 21.02 indicates a rather expensive valuation of FTS.
FTS's Price/Earnings ratio is rather expensive when compared to the industry. FTS is more expensive than 88.89% of the companies in the same industry.
FTS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.02, FTS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTS indicates a rather expensive valuation: FTS more expensive than 88.89% of the companies listed in the same industry.
FTS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 20.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS is valued more expensive than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FTS does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of FTS may justify a higher PE ratio.
PEG (NY)3.02
PEG (5Y)4.14
EPS Next 2Y4.95%
EPS Next 3Y4.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.26%, FTS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.72, FTS pays a better dividend. On top of this FTS pays more dividend than 94.44% of the companies listed in the same industry.
FTS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
5.2 History
The dividend of FTS has a limited annual growth rate of 5.61%.
FTS has paid a dividend for at least 10 years, which is a reliable track record.
FTS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.61%
Div Incr Years25
Div Non Decr Years33
5.3 Sustainability
49.62% of the earnings are spent on dividend by FTS. This is a bit on the high side, but may be sustainable.
The dividend of FTS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP49.62%
EPS Next 2Y4.95%
EPS Next 3Y4.98%
TSX:FTS (10/16/2025, 7:00:00 PM)
72.32
+0.16 (+0.22%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap36.42B
Analysts64.76
Price Target72.34 (0.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP49.62%
Div Incr Years25
Div Non Decr Years33
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)0.44%
PT rev (3m)2.79%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 20.02 | ||
| P/S | 3.07 | ||
| P/FCF | N/A | ||
| P/OCF | 8.44 | ||
| P/B | 1.54 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | 12.81 |
EPS(TTM)3.44
EY4.76%
EPS(NY)3.61
Fwd EY5%
FCF(TTM)-3.5
FCFYN/A
OCF(TTM)8.57
OCFY11.85%
SpS23.57
BVpS46.91
TBVpS18.87
PEG (NY)3.02
PEG (5Y)4.14
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 | 0.82 |
F-Score5
WACC5.97%
ROIC/WACC0.72
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 Y6.96%
EPS Next 2Y4.95%
EPS Next 3Y4.98%
EPS Next 5Y5.7%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
Revenue Next Year4.8%
Revenue Next 2Y4.44%
Revenue Next 3Y4.85%
Revenue Next 5Y3.62%
EBIT growth 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.64%
EBIT Next 3Y25.71%
EBIT Next 5Y18%
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%