FORTIS INC (FTS.CA) Stock Fundamental Analysis
TSX:FTS - Toronto Stock Exchange - CA3495531079 - Common Stock - Currency: CAD
Taking everything into account, FTS scores 3 out of 10 in our fundamental rating. FTS was compared to 19 industry peers in the Electric Utilities industry. There are concerns on the financial health of FTS while its profitability can be described as average. FTS does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year FTS was profitable.
FTS had a positive operating cash flow in the past year.
FTS had positive earnings in each of the past 5 years.
FTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTS has a Return On Assets (2.19%) which is comparable to the rest of the industry.
FTS's Return On Equity of 6.75% is in line compared to the rest of the industry. FTS outperforms 52.63% of its industry peers.
With a Return On Invested Capital value of 4.06%, FTS perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
FTS had an Average Return On Invested Capital over the past 3 years of 4.10%. This is in line with the industry average of 3.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROIC | 4.06% |
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 has a Profit Margin (13.96%) which is in line with its industry peers.
FTS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 28.61%, FTS is doing good in the industry, outperforming 63.16% of the companies in the same industry.
FTS's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 71.77%, FTS is doing good in the industry, outperforming 63.16% of the companies in the same industry.
FTS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% |
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 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FTS has more shares outstanding than it did 1 year ago.
FTS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FTS has a worse debt to assets ratio.
2.2 Solvency
FTS has an Altman-Z score of 0.76. This is a bad value and indicates that FTS is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.76, FTS belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.33, FTS perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.72
WACC5.67%
2.3 Liquidity
FTS has a Current Ratio of 0.63. This is a bad value and indicates that FTS is not financially healthy enough and could expect problems in meeting its short term obligations.
FTS has a worse Current ratio (0.63) than 89.47% of its industry peers.
A Quick Ratio of 0.52 indicates that FTS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, FTS is doing worse than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.15% over the past year.
Measured over the past 5 years, FTS shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
FTS shows a decrease in Revenue. In the last year, the revenue decreased by -0.08%.
FTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)6.15%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%15.28%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%2.22%
3.2 Future
The Earnings Per Share is expected to grow by 5.09% on average over the next years.
Based on estimates for the next years, FTS will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.09%
Revenue Next Year4.93%
Revenue Next 2Y4.5%
Revenue Next 3Y3.94%
Revenue Next 5Y2.93%
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 20.45 indicates a rather expensive valuation of FTS.
Compared to the rest of the industry, the Price/Earnings ratio of FTS indicates a rather expensive valuation: FTS more expensive than 84.21% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.22, FTS is valued a bit cheaper.
The Price/Forward Earnings ratio is 19.47, which indicates a rather expensive current valuation of FTS.
89.47% of the companies in the same industry are cheaper than FTS, based on the Price/Forward Earnings ratio.
FTS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 19.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS indicates a rather expensive valuation: FTS more expensive than 84.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.9 |
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.
PEG (NY)4.08
PEG (5Y)4.02
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS has a Yearly Dividend Yield of 3.66%. Purely for dividend investing, there may be better candidates out there.
FTS's Dividend Yield is comparable with the industry average which is at 4.21.
FTS's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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
FTS pays out 50.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
FTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.93%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS (5/2/2025, 7:00:00 PM)
67.08
-0.72 (-1.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap33.65B
Analysts51.82
Price Target67.49 (0.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.93%
Div Incr Years25
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.81%
Min EPS beat(2)1.1%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)2.11%
Min EPS beat(4)1.1%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)2.73%
EPS beat(12)9
Avg EPS beat(12)1.66%
EPS beat(16)10
Avg EPS beat(16)0.03%
Revenue beat(2)0
Avg Revenue beat(2)-8.61%
Min Revenue beat(2)-11.44%
Max Revenue beat(2)-5.78%
Revenue beat(4)0
Avg Revenue beat(4)-6.8%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)-2.48%
Revenue beat(8)1
Avg Revenue beat(8)-4.33%
Revenue beat(12)5
Avg Revenue beat(12)0.72%
Revenue beat(16)9
Avg Revenue beat(16)1.6%
PT rev (1m)3.6%
PT rev (3m)7.14%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)3.82%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.64%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 19.47 | ||
| P/S | 2.92 | ||
| P/FCF | N/A | ||
| P/OCF | 8.67 | ||
| P/B | 1.41 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 12.9 |
EPS(TTM)3.28
EY4.89%
EPS(NY)3.44
Fwd EY5.13%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY11.54%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)4.08
PEG (5Y)4.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROCE | 4.88% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.08% | ||
| ROICexgc | 5.22% | ||
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% | ||
| 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-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.07 | ||
| Cap/Depr | 270.78% | ||
| Cap/Sales | 45.34% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 74.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.76 |
F-Score4
WACC5.67%
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)6.15%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%15.28%
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.09%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%2.22%
Revenue Next Year4.93%
Revenue Next 2Y4.5%
Revenue Next 3Y3.94%
Revenue Next 5Y2.93%
EBIT growth 1Y6.74%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.93%
EBIT Next 3Y25.61%
EBIT Next 5Y16.63%
FCF growth 1Y-114.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.51%
OCF growth 3Y10.12%
OCF growth 5Y7.71%