FORTIS INC (FTS) Stock Fundamental Analysis
NYSE:FTS - CA3495531079 - Common Stock
50.04 USD
+0.22 (+0.44%)
50.04 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. While showing a medium growth rate, FTS is valued expensive at the moment. Finally 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.
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
FTS has a worse Return On Assets (2.33%) than 70.21% of its industry peers.
FTS has a worse Return On Equity (7.19%) than 78.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.27%, FTS is in line with its industry, outperforming 51.06% 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 5.03%.
The last Return On Invested Capital (4.27%) for FTS is above the 3 year average (4.10%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 14.31%, FTS perfoms like the industry average, outperforming 55.32% of the companies in the same industry.
FTS's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 28.90%, FTS belongs to the best of the industry, outperforming 91.49% 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 has a better Gross Margin (72.37%) than 72.34% of its industry peers.
FTS's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS is destroying value.
Compared to 1 year ago, FTS has more shares outstanding
The number of shares outstanding for FTS has been increased compared to 5 years ago.
FTS has a worse debt/assets ratio than last year.
2.2 Solvency
FTS has an Altman-Z score of 0.80. This is a bad value and indicates that FTS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.80, FTS perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS has dependencies on debt 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 | 0.8 |
ROIC/WACC0.77
WACC5.58%
2.3 Liquidity
A Current Ratio of 0.58 indicates that FTS may have some problems paying its short term obligations.
FTS's Current ratio of 0.58 is on the low side compared to the rest of the industry. FTS is outperformed by 78.72% of its industry peers.
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.
The Revenue has been growing slightly by 5.55% on average over the past years.
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
Based on estimates for the next years, FTS will show a small growth in Earnings Per Share. The EPS will grow by 5.71% on average per year.
Based on estimates for the next years, FTS will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.71%
Revenue Next Year8.67%
Revenue Next 2Y6.7%
Revenue Next 3Y9.98%
Revenue Next 5Y3.61%
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 20.18, the valuation of FTS can be described as rather expensive.
Based on the Price/Earnings ratio, FTS is valued a bit more expensive than the industry average as 63.83% of the companies are valued more cheaply.
FTS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.11, which indicates a rather expensive current valuation of FTS.
70.21% of the companies in the same industry are cheaper than FTS, based on the Price/Forward Earnings ratio.
FTS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 19.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS is valued a bit more expensive than the industry average as 61.70% of the companies are valued more cheaply.
| 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 an expensive valuation of the company.
PEG (NY)2.71
PEG (5Y)3.97
EPS Next 2Y5.14%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.29%, FTS is a good candidate for dividend investing.
FTS's Dividend Yield is rather good when compared to the industry average which is at 3.53. FTS pays more dividend than 89.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, FTS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
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 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 2Y5.14%
EPS Next 3Y5.24%
50.04
+0.22 (+0.44%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.26%
Inst Owner Change-0.39%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap25.20B
Analysts55.83
Price Target51.65 (3.22%)
Short Float %1.7%
Short Ratio15.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
Yearly Dividend1.19
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)1.06%
PT rev (3m)5.13%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)2.3%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.11%
Revenue NY rev (3m)3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 19.11 | ||
| P/S | 2.94 | ||
| P/FCF | N/A | ||
| P/OCF | 8.08 | ||
| P/B | 1.48 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 12.5 |
EPS(TTM)2.48
EY4.96%
EPS(NY)2.62
Fwd EY5.23%
FCF(TTM)-2.53
FCFYN/A
OCF(TTM)6.19
OCFY12.37%
SpS17.03
BVpS33.89
TBVpS13.63
PEG (NY)2.71
PEG (5Y)3.97
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%
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 | 1.33 | ||
| 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 | 0.8 |
F-Score5
WACC5.58%
ROIC/WACC0.77
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 Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.71%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
Revenue Next Year8.67%
Revenue Next 2Y6.7%
Revenue Next 3Y9.98%
Revenue Next 5Y3.61%
EBIT growth 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y17.8%
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%