FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:FTS • CA3495531079
72.6 CAD
+0.27 (+0.37%)
Last: Jan 30, 2026, 07:00 PM
FTS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 18 industry peers in the Electric Utilities industry. FTS has a medium profitability rating, but doesn't score so well on its financial health evaluation. FTS has a expensive valuation and it also scores bad on growth.
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.
- 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
- With a Return On Assets value of 2.27%, FTS is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
- The Return On Equity of FTS (6.97%) is worse than 94.44% of its industry peers.
- FTS has a Return On Invested Capital (4.20%) which 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 4.03%.
- The 3 year average ROIC (4.10%) for FTS is below the current ROIC(4.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 6.97% | ||
| ROIC | 4.2% |
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 14.02% 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 (28.97%) is better than 61.11% of its industry peers.
- FTS's Operating Margin has been stable in the last couple of years.
- The Gross Margin of FTS (72.57%) is better than 61.11% of its industry peers.
- 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 | 28.97% | ||
| PM (TTM) | 14.02% | ||
| GM | 72.57% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTS is destroying value.
- FTS has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, FTS has more shares outstanding
- The debt/assets ratio for FTS is higher compared to a year ago.
2.2 Solvency
- FTS has an Altman-Z score of 0.82. This is a bad value and indicates that FTS is not financially healthy and even has some risk of bankruptcy.
- FTS has a Altman-Z score of 0.82. This is amongst the best in the industry. FTS outperforms 88.89% of its industry peers.
- FTS has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.35, FTS perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.7
WACC5.96%
2.3 Liquidity
- FTS has a Current Ratio of 0.66. This is a bad value and indicates that FTS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.66, FTS is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
- FTS has a Quick Ratio of 0.66. 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 Quick ratio (0.54) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
- FTS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.26%.
- 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.
- Looking at the last year, FTS shows a small growth in Revenue. The Revenue has grown by 5.21% in the last year.
- The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)7.26%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-4.71%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%6.03%
3.2 Future
- Based on estimates for the next years, FTS will show a small growth in Earnings Per Share. The EPS will grow by 6.03% on average per year.
- FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.80% yearly.
EPS Next Y7.47%
EPS Next 2Y5.33%
EPS Next 3Y5.59%
EPS Next 5Y6.03%
Revenue Next Year7.37%
Revenue Next 2Y6.09%
Revenue Next 3Y7.06%
Revenue Next 5Y3.8%
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
- FTS is valuated rather expensively with a Price/Earnings ratio of 21.35.
- Based on the Price/Earnings ratio, FTS is valued expensively inside the industry as 88.89% of the companies are valued cheaper.
- The average S&P500 Price/Earnings ratio is at 28.30. FTS is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 19.95, the valuation of FTS can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, FTS is valued expensively inside the industry as 88.89% of the companies are valued cheaper.
- FTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 19.95 |
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 | 12.7 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.86
PEG (5Y)4.2
EPS Next 2Y5.33%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.55%, FTS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.93, FTS has a dividend in line with its industry peers.
- FTS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
- The dividend of FTS has a limited annual growth rate of 5.61%.
- FTS has been paying a dividend for at least 10 years, so it has 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
- 50.83% of the earnings are spent on dividend by FTS. This is a bit on the high side, but may be sustainable.
- FTS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP50.83%
EPS Next 2Y5.33%
EPS Next 3Y5.59%
FORTIS INC / FTS.CA FAQ
What is the fundamental rating for FTS stock?
ChartMill assigns a fundamental rating of 3 / 10 to FTS.CA.
What is the valuation status of FORTIS INC (FTS.CA) stock?
ChartMill assigns a valuation rating of 1 / 10 to FORTIS INC (FTS.CA). This can be considered as Overvalued.
Can you provide the profitability details for FORTIS INC?
FORTIS INC (FTS.CA) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for FTS stock?
The Earnings per Share (EPS) of FORTIS INC (FTS.CA) is expected to grow by 7.47% in the next year.
Can you provide the dividend sustainability for FTS stock?
The dividend rating of FORTIS INC (FTS.CA) is 6 / 10 and the dividend payout ratio is 50.83%.