FORTIS INC (FTS.CA) Stock Fundamental Analysis
TSX:FTS - Toronto Stock Exchange - CA3495531079 - Common Stock - Currency: CAD
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 has a expensive valuation and it also scores bad on growth. FTS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FTS was profitable.
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 (2.20%) which is in line with its industry peers.
The Return On Equity of FTS (6.82%) is worse than 94.74% of its industry peers.
FTS has a Return On Invested Capital (4.04%) which is in line with its industry peers.
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 Rank | Sector 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%
1.3 Margins
FTS has a Profit Margin (14.03%) which is comparable to the rest of the industry.
FTS's Profit Margin has declined in the last couple of years.
The Operating Margin of FTS (28.73%) is better than 63.16% of its industry peers.
FTS's Operating Margin has been stable in the last couple of years.
FTS's Gross Margin of 72.03% is fine compared to the rest of the industry. FTS outperforms 63.16% of its industry peers.
FTS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
Compared to 5 years ago, FTS has more shares outstanding
FTS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that FTS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.79, FTS belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
FTS has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
FTS has a Debt to Equity ratio of 1.37. This is comparable to the rest of the industry: FTS outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.69
WACC5.87%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FTS may have some problems paying its short term obligations.
FTS has a Current ratio of 0.76. This is comparable to the rest of the industry: FTS outperforms 57.89% of its industry peers.
A Quick Ratio of 0.63 indicates that FTS may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, FTS perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.96% over the past year.
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 decrease in Revenue. In the last year, the revenue decreased by -0.08%.
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)8.96%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%13.92%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.75%
3.2 Future
FTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.31% yearly.
Based on estimates for the next years, FTS will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue Next Year4.5%
Revenue Next 2Y4.18%
Revenue Next 3Y3.79%
Revenue Next 5Y3.02%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.30, FTS is valued on the expensive side.
Based on the Price/Earnings ratio, FTS is valued more expensive than 89.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. FTS is valued slightly cheaper when compared to this.
FTS is valuated rather expensively with a Price/Forward Earnings ratio of 19.51.
Based on the Price/Forward Earnings ratio, FTS is valued more expensive than 84.21% of the companies in the same industry.
FTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 19.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS is valued more expensive than 89.47% of the companies 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 an expensive valuation of the company.
PEG (NY)4.05
PEG (5Y)4
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.22%, FTS is a good candidate for dividend investing.
FTS's Dividend Yield is comparable with the industry average which is at 5.28.
Compared to an average S&P500 Dividend Yield of 2.40, FTS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
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 50.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.67%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS (8/7/2025, 7:00:00 PM)
69.84
+0.54 (+0.78%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.26%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap35.17B
Analysts54.17
Price Target70.09 (0.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.67%
Div Incr Years25
Div Non Decr Years33
Ex-Date
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)-0.41%
PT rev (3m)3.85%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 19.51 | ||
| P/S | 3 | ||
| P/FCF | N/A | ||
| P/OCF | 8.13 | ||
| P/B | 1.46 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 12.9 |
EPS(TTM)3.44
EY4.93%
EPS(NY)3.58
Fwd EY5.13%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)8.59
OCFY12.3%
SpS23.29
BVpS47.92
TBVpS18.54
PEG (NY)4.05
PEG (5Y)4
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.79 |
F-Score5
WACC5.87%
ROIC/WACC0.69
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)8.96%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%13.92%
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.75%
Revenue Next Year4.5%
Revenue Next 2Y4.18%
Revenue Next 3Y3.79%
Revenue Next 5Y3.02%
EBIT growth 1Y7.64%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y16.93%
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%