FORTIS INC (FTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FTS - CA3495531079 - Common Stock
51.94 USD
-0.14 (-0.27%)
51.94 USD
0 (0%)
Overall FTS gets a fundamental rating of 3 out of 10. We evaluated FTS against 47 industry peers in the Electric Utilities industry. FTS has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, FTS is valued expensive at the moment. 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
FTS has a worse Return On Assets (2.27%) than 80.85% of its industry peers.
FTS has a Return On Equity of 6.97%. This is amonst the worse of the industry: FTS underperforms 85.11% of its industry peers.
FTS's Return On Invested Capital of 4.20% is in line compared to the rest of the industry. FTS outperforms 48.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTS is in line with the industry average of 5.04%.
The last Return On Invested Capital (4.20%) for FTS is above the 3 year average (4.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 6.97% | ||
| ROIC | 4.2% |
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 has a Profit Margin (14.02%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FTS has declined.
With an excellent Operating Margin value of 28.97%, FTS belongs to the best of the industry, outperforming 97.87% 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 (72.57%) than 70.21% 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 | 28.97% | ||
| PM (TTM) | 14.02% | ||
| GM | 72.57% |
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.
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 0.81. This is a bad value and indicates that FTS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.81, FTS is in line with its industry, outperforming 48.94% of the companies in the same industry.
A Debt/Equity ratio of 1.35 is on the high side and indicates that FTS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.35, FTS perfoms like the industry average, outperforming 59.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.76
WACC5.49%
2.3 Liquidity
FTS has a Current Ratio of 0.66. This is a bad value and indicates that FTS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.66, FTS is not doing good in the industry: 82.98% of the companies in the same industry are doing better.
FTS has a Quick Ratio of 0.66. 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 has a worse Quick ratio (0.54) than 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
FTS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.26%.
FTS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
The Revenue has been growing slightly by 5.21% in the past 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)7.26%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-4.71%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%6.03%
3.2 Future
FTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.39% yearly.
FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
EPS Next Y7.31%
EPS Next 2Y5.32%
EPS Next 3Y5.62%
EPS Next 5Y6.39%
Revenue Next Year7.37%
Revenue Next 2Y6.09%
Revenue Next 3Y7.06%
Revenue Next 5Y3.98%
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 accelerating.
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
With a Price/Earnings ratio of 20.94, FTS is valued on the expensive side.
Based on the Price/Earnings ratio, FTS is valued a bit more expensive than 74.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. FTS is valued slightly cheaper when compared to this.
FTS is valuated rather expensively with a Price/Forward Earnings ratio of 19.56.
Based on the Price/Forward Earnings ratio, FTS is valued a bit more expensive than 72.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FTS to the average of the S&P500 Index (23.13), we can say FTS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS is valued a bit more expensive than 68.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.61 |
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)2.86
PEG (5Y)4.12
EPS Next 2Y5.32%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
FTS has a Yearly Dividend Yield of 5.75%, which is a nice return.
Compared to an average industry Dividend Yield of 3.02, FTS pays a better dividend. On top of this FTS pays more dividend than 91.49% of the companies listed in the same industry.
FTS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
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
FTS pays out 50.83% of its income as dividend. 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.
DP50.83%
EPS Next 2Y5.32%
EPS Next 3Y5.62%
51.94
-0.14 (-0.27%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.48%
Inst Owner Change-0.12%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap26.25B
Revenue(TTM)12.04B
Net Income(TTM)1.69B
Analysts65.71
Price Target54.9 (5.7%)
Short Float %1.66%
Short Ratio11.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
Yearly Dividend1.21
Dividend Growth(5Y)5.61%
DP50.83%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.08%
Min EPS beat(2)-5.22%
Max EPS beat(2)7.39%
EPS beat(4)3
Avg EPS beat(4)1.26%
Min EPS beat(4)-5.22%
Max EPS beat(4)7.39%
EPS beat(8)7
Avg EPS beat(8)1.7%
EPS beat(12)10
Avg EPS beat(12)2.25%
EPS beat(16)11
Avg EPS beat(16)0.79%
Revenue beat(2)2
Avg Revenue beat(2)1.8%
Min Revenue beat(2)1.3%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)2.3%
Revenue beat(8)2
Avg Revenue beat(8)-3.45%
Revenue beat(12)4
Avg Revenue beat(12)-0.61%
Revenue beat(16)8
Avg Revenue beat(16)1.43%
PT rev (1m)2.78%
PT rev (3m)5.13%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)0.82%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 19.56 | ||
| P/S | 2.99 | ||
| P/FCF | N/A | ||
| P/OCF | 8.98 | ||
| P/B | 1.49 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 12.61 |
EPS(TTM)2.48
EY4.77%
EPS(NY)2.66
Fwd EY5.11%
FCF(TTM)-3.22
FCFYN/A
OCF(TTM)5.79
OCFY11.14%
SpS17.39
BVpS34.96
TBVpS14.17
PEG (NY)2.86
PEG (5Y)4.12
Graham Number44.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 6.97% | ||
| ROCE | 5.06% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 5.33% | ||
| OM | 28.97% | ||
| PM (TTM) | 14.02% | ||
| GM | 72.57% | ||
| 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-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.92 | ||
| Cap/Depr | 304.79% | ||
| Cap/Sales | 51.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.81 |
F-Score4
WACC5.49%
ROIC/WACC0.76
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)7.26%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-4.71%
EPS Next Y7.31%
EPS Next 2Y5.32%
EPS Next 3Y5.62%
EPS Next 5Y6.39%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%6.03%
Revenue Next Year7.37%
Revenue Next 2Y6.09%
Revenue Next 3Y7.06%
Revenue Next 5Y3.98%
EBIT growth 1Y8.76%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year74.46%
EBIT Next 3Y26%
EBIT Next 5Y18.99%
FCF growth 1Y-510.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.21%
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.
What is the valuation status of FORTIS INC (FTS) stock?
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.
Can you provide the expected EPS growth for FTS stock?
The Earnings per Share (EPS) of FORTIS INC (FTS) is expected to grow by 7.31% in the next year.
Can you provide the dividend sustainability for FTS stock?
The dividend rating of FORTIS INC (FTS) is 8 / 10 and the dividend payout ratio is 50.83%.