FORTIS INC (FTS)
CA3495531079 - Common Stock
Taking everything into account, FTS scores 4 out of 10 in our fundamental rating. FTS was compared to 45 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 is quite expensive at the moment. It does show a decent growth rate. FTS also has an excellent dividend rating.
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
Looking at the Return On Assets, with a value of 2.28%, FTS is in line with its industry, outperforming 51.11% of the companies in the same industry.
FTS's Return On Equity of 7.00% is on the low side compared to the rest of the industry. FTS is outperformed by 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.28%, FTS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FTS is in line with the industry average of 4.42%.
The 3 year average ROIC (4.03%) for FTS is below the current ROIC(4.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.28% | ||
| ROE | 7% | ||
| ROIC | 4.28% |
ROA(3y)2.16%
ROA(5y)2.35%
ROE(3y)6.57%
ROE(5y)7.02%
ROIC(3y)4.03%
ROIC(5y)4.05%
1.3 Margins
The Profit Margin of FTS (13.08%) is better than 64.44% of its industry peers.
FTS's Profit Margin has been stable in the last couple of years.
FTS has a Operating Margin of 26.78%. This is amongst the best in the industry. FTS outperforms 93.33% of its industry peers.
FTS's Operating Margin has been stable in the last couple of years.
The Gross Margin of FTS (67.26%) is better than 68.89% 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 | 26.78% | ||
| PM (TTM) | 13.08% | ||
| GM | 67.26% |
OM growth 3Y-1.56%
OM growth 5Y-1.02%
PM growth 3Y-1.13%
PM growth 5Y-0.05%
GM growth 3Y-1.94%
GM growth 5Y-0.87%
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 0.74, we must say that FTS is in the distress zone and has some risk of bankruptcy.
FTS has a Altman-Z score (0.74) which is comparable to the rest of the industry.
FTS has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
FTS has a Debt to Equity ratio of 1.29. This is in the better half of the industry: FTS outperforms 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.75
WACC5.68%
2.3 Liquidity
A Current Ratio of 0.67 indicates that FTS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.67, FTS is doing worse than 71.11% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that FTS may have some problems paying its short term obligations.
FTS's Quick ratio of 0.58 is on the low side compared to the rest of the industry. FTS is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.15% over the past year.
FTS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.58% yearly.
The Revenue has been growing slightly by 4.29% in the past year.
The Revenue has been growing slightly by 6.54% on average over the past years.
EPS 1Y (TTM)11.15%
EPS 3Y6.2%
EPS 5Y4.58%
EPS growth Q2Q0%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y8.83%
Revenue growth 5Y6.54%
Revenue growth Q2Q-8.93%
3.2 Future
The Earnings Per Share is expected to grow by 4.67% 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 2.13% yearly.
EPS Next Y4.47%
EPS Next 2Y4.12%
EPS Next 3Y4.39%
EPS Next 5Y4.67%
Revenue Next Year3.45%
Revenue Next 2Y3.57%
Revenue Next 3Y3.61%
Revenue Next 5Y2.13%
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.
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 17.28 indicates a rather expensive valuation of FTS.
FTS's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of FTS to the average of the S&P500 Index (24.92), we can say FTS is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.55 indicates a correct valuation of FTS.
71.11% of the companies in the same industry are cheaper than FTS, based on the Price/Forward Earnings ratio.
FTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
FTS's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.48 |
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.
FTS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.87
PEG (5Y)3.77
EPS Next 2Y4.12%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.39%, FTS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.35, FTS pays a bit more dividend than its industry peers.
FTS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
5.2 History
The dividend of FTS has a limited annual growth rate of 5.03%.
FTS has paid a dividend for at least 10 years, which is a reliable track record.
FTS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.03%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
FTS pays out 51.00% of its income as dividend. 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.
DP51%
EPS Next 2Y4.12%
EPS Next 3Y4.39%
FORTIS INC
NYSE:FTS (4/26/2024, 7:04:00 PM)
After market: 39.06 0 (0%)39.06
-0.26 (-0.66%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 16.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.87
PEG (5Y)3.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.28% | ||
| ROE | 7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.78% | ||
| PM (TTM) | 13.08% | ||
| GM | 67.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.15%
EPS 3Y6.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.29%
Revenue growth 3Y8.83%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y