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 does not seem to be growing, but still is valued expensively.
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.
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 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
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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.71
WACC5.7%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 18.4 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.5 |
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%
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 Rank | Sector 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
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%
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)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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)0.56%
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 Rank | Sector 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 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 | 0.77 |
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%