FORTIS INC - FTSCN 4.9 PERP (FTS-PR-F.CA) Stock Fundamental Analysis
TSX:FTS-PR-F - Toronto Stock Exchange - CA3495538678 - Currency: CAD
Taking everything into account, FTS-PR-F scores 4 out of 10 in our fundamental rating. FTS-PR-F was compared to 19 industry peers in the Electric Utilities industry. There are concerns on the financial health of FTS-PR-F while its profitability can be described as average. FTS-PR-F is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FTS-PR-F had positive earnings in the past year.
FTS-PR-F had a positive operating cash flow in the past year.
In the past 5 years FTS-PR-F has always been profitable.
Each year in the past 5 years FTS-PR-F had a positive operating cash flow.
1.2 Ratios
FTS-PR-F has a Return On Assets (2.19%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 6.75%, FTS-PR-F is in line with its industry, outperforming 57.89% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.06%, FTS-PR-F is doing good in the industry, outperforming 63.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FTS-PR-F is in line with the industry average of 3.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROIC | 4.06% |
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-PR-F has a better Profit Margin (13.96%) than 63.16% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-F has declined.
FTS-PR-F has a better Operating Margin (28.61%) than 68.42% of its industry peers.
FTS-PR-F's Operating Margin has been stable in the last couple of years.
FTS-PR-F's Gross Margin of 71.77% is fine compared to the rest of the industry. FTS-PR-F outperforms 68.42% of its industry peers.
FTS-PR-F's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% |
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-PR-F is destroying value.
The number of shares outstanding for FTS-PR-F has been increased compared to 1 year ago.
The number of shares outstanding for FTS-PR-F has been increased compared to 5 years ago.
Compared to 1 year ago, FTS-PR-F has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.49, we must say that FTS-PR-F is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FTS-PR-F (0.49) is better than 73.68% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS-PR-F has dependencies on debt financing.
FTS-PR-F has a better Debt to Equity ratio (1.33) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.49 |
ROIC/WACC0.82
WACC4.98%
2.3 Liquidity
FTS-PR-F has a Current Ratio of 0.63. This is a bad value and indicates that FTS-PR-F is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of FTS-PR-F (0.63) is worse than 84.21% of its industry peers.
FTS-PR-F has a Quick Ratio of 0.63. This is a bad value and indicates that FTS-PR-F is not financially healthy enough and could expect problems in meeting its short term obligations.
FTS-PR-F has a worse Quick ratio (0.52) than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FTS-PR-F shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.37%.
The Earnings Per Share has been growing slightly by 5.13% on average over the past years.
FTS-PR-F shows a decrease in Revenue. In the last year, the revenue decreased by -0.08%.
FTS-PR-F shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)6.37%
EPS 3Y8.27%
EPS 5Y5.13%
EPS Q2Q%16.23%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%3.63%
3.2 Future
The Earnings Per Share is expected to grow by 4.80% on average over the next years.
Based on estimates for the next years, FTS-PR-F will show a small growth in Revenue. The Revenue will grow by 2.36% on average per year.
EPS Next Y4.66%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
EPS Next 5Y4.8%
Revenue Next Year8.89%
Revenue Next 2Y6.34%
Revenue Next 3Y5.52%
Revenue Next 5Y2.36%
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
The Price/Earnings ratio is 6.84, which indicates a rather cheap valuation of FTS-PR-F.
Based on the Price/Earnings ratio, FTS-PR-F is valued a bit cheaper than 68.42% of the companies in the same industry.
FTS-PR-F's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 6.54, which indicates a rather cheap valuation of FTS-PR-F.
FTS-PR-F's Price/Forward Earnings is on the same level as the industry average.
FTS-PR-F's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.84 | ||
| Fwd PE | 6.54 |
4.2 Price Multiples
FTS-PR-F's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.54 |
4.3 Compensation for Growth
FTS-PR-F's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FTS-PR-F may justify a higher PE ratio.
PEG (NY)1.47
PEG (5Y)1.33
EPS Next 2Y4.57%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
FTS-PR-F has a Yearly Dividend Yield of 3.94%.
FTS-PR-F's Dividend Yield is comparable with the industry average which is at 4.45.
FTS-PR-F's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
The dividend of FTS-PR-F has a limited annual growth rate of 5.61%.
FTS-PR-F has paid a dividend for at least 10 years, which is a reliable track record.
FTS-PR-F has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.61%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
50.93% of the earnings are spent on dividend by FTS-PR-F. This is a bit on the high side, but may be sustainable.
FTS-PR-F's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.93%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
TSX:FTS-PR-F (3/7/2025, 7:00:00 PM)
22.5
-0.02 (-0.09%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap11.23B
Analysts51.43
Price Target22.89 (1.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.93%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.35%
Min EPS beat(2)2.18%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)2.38%
Min EPS beat(4)1.71%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)2.87%
EPS beat(12)9
Avg EPS beat(12)1.75%
EPS beat(16)10
Avg EPS beat(16)0.1%
Revenue beat(2)0
Avg Revenue beat(2)-8%
Min Revenue beat(2)-10.22%
Max Revenue beat(2)-5.78%
Revenue beat(4)0
Avg Revenue beat(4)-6.49%
Min Revenue beat(4)-10.22%
Max Revenue beat(4)-2.48%
Revenue beat(8)1
Avg Revenue beat(8)-4.18%
Revenue beat(12)5
Avg Revenue beat(12)0.82%
Revenue beat(16)9
Avg Revenue beat(16)1.67%
PT rev (1m)4.48%
PT rev (3m)7.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.66%
EPS NY rev (1m)0.69%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.43%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.84 | ||
| Fwd PE | 6.54 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | 2.89 | ||
| P/B | 0.47 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 8.54 |
EPS(TTM)3.29
EY14.62%
EPS(NY)3.44
Fwd EY15.29%
FCF(TTM)-2.68
FCFYN/A
OCF(TTM)7.77
OCFY34.55%
SpS23.05
BVpS47.68
TBVpS18.1
PEG (NY)1.47
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROCE | 4.88% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.08% | ||
| ROICexgc | 5.22% | ||
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% | ||
| 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-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.07 | ||
| Cap/Depr | 270.78% | ||
| Cap/Sales | 45.34% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 74.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.49 |
F-Score4
WACC4.98%
ROIC/WACC0.82
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)6.37%
EPS 3Y8.27%
EPS 5Y5.13%
EPS Q2Q%16.23%
EPS Next Y4.66%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
EPS Next 5Y4.8%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%3.63%
Revenue Next Year8.89%
Revenue Next 2Y6.34%
Revenue Next 3Y5.52%
Revenue Next 5Y2.36%
EBIT growth 1Y6.74%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.53%
EBIT Next 3Y25.25%
EBIT Next 5Y16.49%
FCF growth 1Y-114.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.51%
OCF growth 3Y10.12%
OCF growth 5Y7.71%