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FORTIS INC (FTS.CA) Stock Fundamental Analysis

TSX:FTS - CA3495531079 - Common Stock

68.18 CAD
-0.53 (-0.77%)
Last: 9/5/2025, 7:00:00 PM
Fundamental Rating

4

Overall FTS gets a fundamental rating of 4 out of 10. We evaluated FTS against 18 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 is quite expensive at the moment. It does show a decent growth rate. Finally FTS also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

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.
Each year in the past 5 years FTS had a positive operating cash flow.
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

With a Return On Assets value of 2.33%, FTS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
With a Return On Equity value of 7.19%, FTS perfoms like the industry average, 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 last Return On Invested Capital (4.27%) for FTS is above the 3 year average (4.10%), which is a sign of increasing profitability.
Industry RankSector 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%
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

The Profit Margin of FTS (14.31%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FTS has declined.
The Operating Margin of FTS (28.90%) is better than 61.11% of its industry peers.
FTS's Operating Margin has been stable in the last couple of years.
FTS has a better Gross Margin (72.37%) 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 RankSector 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%
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS is destroying value.
Compared to 1 year ago, FTS has more shares outstanding
The number of shares outstanding for FTS has been increased compared to 5 years ago.
Compared to 1 year ago, FTS has a worse debt to assets ratio.
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 0.80. This is a bad value and indicates that FTS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FTS (0.80) is better than 88.89% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS has dependencies on debt financing.
FTS has a Debt to Equity ratio (1.33) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF N/A
Altman-Z 0.8
ROIC/WACC0.72
WACC5.93%
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 0.58. 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 Current ratio of 0.58. This is amonst the worse of the industry: FTS underperforms 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 RankSector Rank
Current Ratio 0.58
Quick Ratio 0.47
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

4

3. Growth

3.1 Past

FTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.86%, which is quite good.
FTS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
FTS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.22%.
FTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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 5.71% 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 3.61% on average per year.
EPS Next Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.71%
Revenue Next Year8.67%
Revenue Next 2Y6.7%
Revenue Next 3Y9.98%
Revenue Next 5Y3.61%

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.
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.
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 5B 10B 15B
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

Based on the Price/Earnings ratio of 19.82, the valuation of FTS can be described as rather expensive.
88.89% of the companies in the same industry are cheaper than FTS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FTS to the average of the S&P500 Index (27.06), we can say FTS is valued slightly cheaper.
FTS is valuated rather expensively with a Price/Forward Earnings ratio of 18.80.
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 22.69, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.82
Fwd PE 18.8
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

Based on the Enterprise Value to EBITDA ratio, FTS is valued expensively inside the industry as 88.89% of the companies are valued cheaper.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.47
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.
The decent profitability rating of FTS may justify a higher PE ratio.
PEG (NY)2.67
PEG (5Y)3.9
EPS Next 2Y5.14%
EPS Next 3Y5.24%

8

5. Dividend

5.1 Amount

FTS has a Yearly Dividend Yield of 7.05%, which is a nice return.
FTS's Dividend Yield is rather good when compared to the industry average which is at 5.89. FTS pays more dividend than 100.00% of the companies in the same industry.
FTS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
Industry RankSector Rank
Dividend Yield 7.05%

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

FTS pays out 49.62% of its income as dividend. 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 2Y5.14%
EPS Next 3Y5.24%
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 (9/5/2025, 7:00:00 PM)

68.18

-0.53 (-0.77%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)08-01 2025-08-01/bmo
Earnings (Next)11-03 2025-11-03
Inst Owners55.26%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap34.34B
Analysts55.83
Price Target71.64 (5.07%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 7.05%
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP49.62%
Div Incr Years25
Div Non Decr Years33
Ex-Date08-19 2025-08-19 (0.615)
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)2.21%
PT rev (3m)5.55%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)2.3%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.99%
Revenue NY rev (3m)3.11%
Valuation
Industry RankSector Rank
PE 19.82
Fwd PE 18.8
P/S 2.89
P/FCF N/A
P/OCF 7.95
P/B 1.45
P/tB 3.61
EV/EBITDA 12.47
EPS(TTM)3.44
EY5.05%
EPS(NY)3.63
Fwd EY5.32%
FCF(TTM)-3.5
FCFYN/A
OCF(TTM)8.57
OCFY12.57%
SpS23.58
BVpS46.91
TBVpS18.87
PEG (NY)2.67
PEG (5Y)3.9
Profitability
Industry RankSector 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 RankSector 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 0.8
F-Score5
WACC5.93%
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 Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.71%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
Revenue Next Year8.67%
Revenue Next 2Y6.7%
Revenue Next 3Y9.98%
Revenue Next 5Y3.61%
EBIT growth 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y17.8%
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%