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FORTIS INC (FTS.CA) Stock Fundamental Analysis

TSX:FTS - Toronto Stock Exchange - CA3495531079 - Common Stock - Currency: CAD

65.89  -0.54 (-0.81%)

Fundamental Rating

3

Overall FTS gets a fundamental rating of 3 out of 10. We evaluated FTS against 19 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 does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

5

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.
FTS had a positive operating cash flow in each of the past 5 years.
FTS.CA Yearly Net Income VS EBIT VS OCF VS FCFFTS.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B 3B

1.2 Ratios

FTS has a Return On Assets (2.20%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 6.82%, FTS is doing worse than 94.74% of the companies in the same industry.
FTS has a Return On Invested Capital (4.04%) which is comparable to the rest of the 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 3.84%.
Industry RankSector 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%
FTS.CA Yearly ROA, ROE, ROICFTS.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

1.3 Margins

With a Profit Margin value of 14.03%, FTS perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
FTS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 28.73%, FTS is doing good in the industry, outperforming 63.16% of the companies in the same industry.
In the last couple of years the Operating Margin of FTS has remained more or less at the same level.
FTS's Gross Margin of 72.03% is fine compared to the rest of the industry. FTS outperforms 63.16% 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 RankSector 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%
FTS.CA Yearly Profit, Operating, Gross MarginsFTS.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTS is destroying value.
The number of shares outstanding for FTS has been increased compared to 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.
FTS.CA Yearly Shares OutstandingFTS.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
FTS.CA Yearly Total Debt VS Total AssetsFTS.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

FTS has an Altman-Z score of 0.77. 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 0.77, FTS belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that FTS has dependencies on debt financing.
The Debt to Equity ratio of FTS (1.37) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.37
Debt/FCF N/A
Altman-Z 0.77
ROIC/WACC0.71
WACC5.7%
FTS.CA Yearly LT Debt VS Equity VS FCFFTS.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

2.3 Liquidity

FTS has a Current Ratio of 0.76. This is a bad value and indicates that FTS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of FTS (0.76) is comparable to the rest of the industry.
FTS has a Quick Ratio of 0.76. 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's Quick ratio of 0.63 is in line compared to the rest of the industry. FTS outperforms 57.89% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.63
FTS.CA Yearly Current Assets VS Current LiabilitesFTS.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.72% 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.
The Revenue has been growing slightly by 3.64% in the past year.
The Revenue has been growing slightly by 5.55% on average over the past years.
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 will show a small growth in Earnings Per Share. The EPS will grow by 5.09% on average per year.
The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.09%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y2.93%

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.
FTS.CA Yearly Revenue VS EstimatesFTS.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
FTS.CA Yearly EPS VS EstimatesFTS.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 19.67 indicates a rather expensive valuation of FTS.
Based on the Price/Earnings ratio, FTS is valued more expensive than 89.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of FTS to the average of the S&P500 Index (26.38), we can say FTS is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.40, which indicates a rather expensive current valuation of FTS.
Based on the Price/Forward Earnings ratio, FTS is valued expensively inside the industry as 89.47% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 22.13. FTS is around the same levels.
Industry RankSector Rank
PE 19.67
Fwd PE 18.4
FTS.CA Price Earnings VS Forward Price EarningsFTS.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

89.47% of the companies in the same industry are cheaper than FTS, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.5
FTS.CA Per share dataFTS.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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)3.92
PEG (5Y)3.87
EPS Next 2Y4.48%
EPS Next 3Y4.84%

6

5. Dividend

5.1 Amount

FTS has a Yearly Dividend Yield of 3.70%.
FTS's Dividend Yield is comparable with the industry average which is at 4.17.
FTS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
Industry RankSector Rank
Dividend Yield 3.7%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.61%
Div Incr Years25
Div Non Decr Years33
FTS.CA Yearly Dividends per shareFTS.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

50.67% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP50.67%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
FTS.CA Yearly Income VS Free CF VS DividendFTS.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B -1B 1.5B
FTS.CA Dividend Payout.FTS.CA Dividend Payout, showing the Payout Ratio.FTS.CA Dividend Payout.PayoutRetained Earnings

FORTIS INC

TSX:FTS (6/4/2025, 7:00:00 PM)

65.89

-0.54 (-0.81%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)07-29 2025-07-29
Inst Owners56.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap33.05B
Analysts51.82
Price Target67.87 (3.01%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.7%
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.67%
Div Incr Years25
Div Non Decr Years33
Ex-Date05-16 2025-05-16 (0.615)
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)0.56%
PT rev (3m)5.32%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-3.47%
Revenue NQ rev (3m)-5.23%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.45%
Valuation
Industry RankSector Rank
PE 19.67
Fwd PE 18.4
P/S 2.82
P/FCF N/A
P/OCF 7.64
P/B 1.37
P/tB 3.54
EV/EBITDA 12.5
EPS(TTM)3.35
EY5.08%
EPS(NY)3.58
Fwd EY5.43%
FCF(TTM)-2.63
FCFYN/A
OCF(TTM)8.63
OCFY13.09%
SpS23.38
BVpS48.11
TBVpS18.62
PEG (NY)3.92
PEG (5Y)3.87
Profitability
Industry RankSector 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 RankSector 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 0.77
F-Score5
WACC5.7%
ROIC/WACC0.71
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 5Y5.09%
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 5Y2.93%
EBIT growth 1Y7.64%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y16.63%
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%