FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada - TSX:FTS - CA3495531079 - Common Stock
71.96 CAD
-0.16 (-0.22%)
We assign a fundamental rating of 3 out of 10 to FTS. FTS was compared to 18 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.
1. Profitability
1.1 Basic Checks
FTS had positive earnings in the past year.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.33%, FTS is in line with its industry, outperforming 50.00% of the companies in the same industry.
FTS has a Return On Equity of 7.19%. This is comparable to the rest of the industry: FTS outperforms 50.00% of its industry peers.
FTS has a Return On Invested Capital (4.27%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for FTS is in line with the industry average of 4.02%.
The 3 year average ROIC (4.10%) for FTS is below the current ROIC(4.27%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 14.31%, FTS is in line with its industry, outperforming 50.00% of the companies in the same industry.
FTS's Profit Margin has declined in the last couple of years.
FTS has a Operating Margin of 28.90%. This is in the better half of the industry: FTS outperforms 61.11% of its industry peers.
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 72.37% is fine compared to the rest of the industry. FTS outperforms 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 | 28.9% | ||
| 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%
2. Health
2.1 Basic Checks
FTS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FTS has more shares outstanding than it did 1 year ago.
FTS has more shares outstanding than it did 5 years ago.
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.
The Altman-Z score of FTS (0.82) 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.73
WACC5.86%
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.
Looking at the Current ratio, with a value of 0.58, FTS is doing worse than 88.89% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that FTS may have some problems paying its short term obligations.
With a Quick ratio value of 0.47, FTS is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.89% 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 decreased by -0.08% in the past year.
FTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)7.89%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-2.32%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%8.35%
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 5.85% on average per year.
FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y6.44%
EPS Next 2Y4.76%
EPS Next 3Y5.06%
EPS Next 5Y5.85%
Revenue Next Year5.21%
Revenue Next 2Y4.5%
Revenue Next 3Y4.92%
Revenue Next 5Y3.76%
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
The Price/Earnings ratio is 21.04, which indicates a rather expensive current valuation of FTS.
Based on the Price/Earnings ratio, FTS is valued expensively inside the industry as 88.89% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of FTS to the average of the S&P500 Index (26.06), we can say FTS is valued inline with the index average.
The Price/Forward Earnings ratio is 19.99, which indicates a rather expensive current valuation of FTS.
Based on the Price/Forward Earnings ratio, FTS is valued expensively inside the industry as 88.89% of the companies are valued cheaper.
FTS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.04 | ||
| Fwd PE | 19.99 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of FTS may justify a higher PE ratio.
PEG (NY)3.27
PEG (5Y)4.14
EPS Next 2Y4.76%
EPS Next 3Y5.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.55%, FTS has a reasonable but not impressive dividend return.
FTS's Dividend Yield is comparable with the industry average which is at 3.97.
FTS's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| 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 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
49.62% 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.
DP49.62%
EPS Next 2Y4.76%
EPS Next 3Y5.06%
TSX:FTS (11/7/2025, 7:00:00 PM)
71.96
-0.16 (-0.22%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap36.37B
Revenue(TTM)11.51B
Net Income(TTM)1.70B
Analysts64.76
Price Target72.64 (0.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP49.62%
Div Incr Years25
Div Non Decr Years33
Ex-Date
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)0.41%
PT rev (3m)3.64%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.04 | ||
| Fwd PE | 19.99 | ||
| P/S | 3.06 | ||
| P/FCF | N/A | ||
| P/OCF | 8.43 | ||
| P/B | 1.54 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | 12.8 |
EPS(TTM)3.42
EY4.75%
EPS(NY)3.6
Fwd EY5%
FCF(TTM)-3.49
FCFYN/A
OCF(TTM)8.54
OCFY11.87%
SpS23.49
BVpS46.74
TBVpS18.81
PEG (NY)3.27
PEG (5Y)4.14
Graham Number59.97
Profitability
| Industry Rank | Sector 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%
ROICexgc growth 3Y0.42%
ROICexgc 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 | 1.33 | ||
| 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 | 0.82 |
F-Score5
WACC5.86%
ROIC/WACC0.73
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)7.89%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-2.32%
EPS Next Y6.44%
EPS Next 2Y4.76%
EPS Next 3Y5.06%
EPS Next 5Y5.85%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%8.35%
Revenue Next Year5.21%
Revenue Next 2Y4.5%
Revenue Next 3Y4.92%
Revenue Next 5Y3.76%
EBIT growth 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.64%
EBIT Next 3Y25.71%
EBIT Next 5Y18.17%
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%
FORTIS INC / FTS.CA FAQ
What is the fundamental rating for FTS stock?
ChartMill assigns a fundamental rating of 3 / 10 to FTS.CA.
Can you provide the valuation status for FORTIS INC?
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 6 / 10.
What is the valuation of FORTIS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FORTIS INC (FTS.CA) is 21.04 and the Price/Book (PB) ratio is 1.54.
How sustainable is the dividend of FORTIS INC (FTS.CA) stock?
The dividend rating of FORTIS INC (FTS.CA) is 6 / 10 and the dividend payout ratio is 49.62%.