FORTIS INC (FTS) Stock Fundamental Analysis
USA - NYSE:FTS - CA3495531079 - Common Stock
51.4 USD
-0.26 (-0.5%)
51.4 USD
0 (0%)
FTS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 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.
1. Profitability
1.1 Basic Checks
In the past year FTS was profitable.
FTS had a positive operating cash flow in the past year.
In the past 5 years FTS has always been profitable.
In the past 5 years FTS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FTS (2.33%) is worse than 72.34% of its industry peers.
FTS has a worse Return On Equity (7.19%) than 74.47% of its industry peers.
FTS has a Return On Invested Capital (4.27%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FTS is in line with the industry average of 4.90%.
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
FTS's Profit Margin of 14.31% is in line compared to the rest of the industry. FTS outperforms 55.32% of its industry peers.
In the last couple of years the Profit Margin of FTS has declined.
FTS has a Operating Margin of 28.90%. This is amongst the best in the industry. FTS outperforms 93.62% 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 has a Gross Margin of 72.37%. This is in the better half of the industry: FTS outperforms 72.34% 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.
Compared to 1 year ago, FTS has a worse debt to assets ratio.
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.
FTS's Altman-Z score of 0.82 is in line compared to the rest of the industry. FTS outperforms 44.68% of its industry peers.
FTS has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
FTS's Debt to Equity ratio of 1.33 is in line compared to the rest of the industry. FTS outperforms 55.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.78
WACC5.5%
2.3 Liquidity
A Current Ratio of 0.58 indicates that FTS may have some problems paying its short term obligations.
With a Current ratio value of 0.58, FTS is not doing good in the industry: 78.72% of the companies in the same industry are doing better.
A Quick Ratio of 0.47 indicates that FTS may have some problems paying its short term obligations.
FTS's Quick ratio of 0.47 is on the low side compared to the rest of the industry. FTS is outperformed by 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 |
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.
Looking at the last year, FTS shows a small growth in Revenue. The Revenue has grown by 4.22% in the last year.
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)8.86%
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 5.70% on average over the next years.
FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.62% yearly.
EPS Next Y6.96%
EPS Next 2Y4.95%
EPS Next 3Y4.98%
EPS Next 5Y5.7%
Revenue Next Year4.8%
Revenue Next 2Y4.44%
Revenue Next 3Y4.85%
Revenue Next 5Y3.62%
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
Based on the Price/Earnings ratio of 20.89, the valuation of FTS can be described as rather expensive.
61.70% of the companies in the same industry are cheaper than FTS, based on the Price/Earnings ratio.
FTS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.83.
Based on the Price/Forward Earnings ratio of 19.91, the valuation of FTS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, FTS is valued a bit more expensive than the industry average as 72.34% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.82, FTS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS indicates a slightly more expensive valuation: FTS is more expensive than 61.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.83 |
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)3
PEG (5Y)4.11
EPS Next 2Y4.95%
EPS Next 3Y4.98%
5. Dividend
5.1 Amount
FTS has a Yearly Dividend Yield of 3.40%.
FTS's Dividend Yield is a higher than the industry average which is at 3.24.
Compared to an average S&P500 Dividend Yield of 2.34, FTS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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 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 Years21
Div Non Decr Years21
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.
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 2Y4.95%
EPS Next 3Y4.98%
51.4
-0.26 (-0.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner Change0.01%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap25.98B
Revenue(TTM)11.87B
Net Income(TTM)1.70B
Analysts64.76
Price Target51.93 (1.03%)
Short Float %1.52%
Short Ratio13.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
Yearly Dividend1.18
Dividend Growth(5Y)5.61%
DP49.62%
Div Incr Years21
Div Non Decr Years21
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)-0.54%
PT rev (3m)1.62%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 19.91 | ||
| P/S | 3.06 | ||
| P/FCF | N/A | ||
| P/OCF | 8.42 | ||
| P/B | 1.54 | ||
| P/tB | 3.82 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)2.46
EY4.79%
EPS(NY)2.58
Fwd EY5.02%
FCF(TTM)-2.49
FCFYN/A
OCF(TTM)6.1
OCFY11.88%
SpS16.79
BVpS33.41
TBVpS13.44
PEG (NY)3
PEG (5Y)4.11
Graham Number43
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
WACC5.5%
ROIC/WACC0.78
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 Y6.96%
EPS Next 2Y4.95%
EPS Next 3Y4.98%
EPS Next 5Y5.7%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
Revenue Next Year4.8%
Revenue Next 2Y4.44%
Revenue Next 3Y4.85%
Revenue Next 5Y3.62%
EBIT growth 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.64%
EBIT Next 3Y25.71%
EBIT Next 5Y18%
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 FAQ
What is the fundamental rating for FTS stock?
ChartMill assigns a fundamental rating of 3 / 10 to FTS.
Can you provide the valuation status for FORTIS INC?
ChartMill assigns a valuation rating of 1 / 10 to FORTIS INC (FTS). This can be considered as Overvalued.
Can you provide the profitability details for FORTIS INC?
FORTIS INC (FTS) has a profitability rating of 5 / 10.
What is the valuation of FORTIS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FORTIS INC (FTS) is 20.89 and the Price/Book (PB) ratio is 1.54.
How sustainable is the dividend of FORTIS INC (FTS) stock?
The dividend rating of FORTIS INC (FTS) is 6 / 10 and the dividend payout ratio is 49.62%.