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 has a valuation in line with the averages, but it does not seem to be growing. FTS-PR-F also has an excellent dividend rating.
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.
FTS-PR-F had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FTS-PR-F (2.20%) is better than 73.68% of its industry peers.
The Return On Equity of FTS-PR-F (6.82%) is worse than 73.68% of its industry peers.
FTS-PR-F's Return On Invested Capital of 4.04% is fine compared to the rest of the industry. FTS-PR-F outperforms 78.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTS-PR-F is in line with the industry average of 3.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.82% | ||
| ROIC | 4.04% |
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
The Profit Margin of FTS-PR-F (14.03%) is better than 78.95% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-F has declined.
FTS-PR-F has a Operating Margin of 28.73%. This is amongst the best in the industry. FTS-PR-F outperforms 84.21% of its industry peers.
FTS-PR-F's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 72.03%, FTS-PR-F belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
In the last couple of years the Gross Margin of FTS-PR-F has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.73% | ||
| PM (TTM) | 14.03% | ||
| GM | 72.03% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTS-PR-F is destroying value.
The number of shares outstanding for FTS-PR-F has been increased compared to 1 year ago.
Compared to 5 years ago, FTS-PR-F has more shares outstanding
FTS-PR-F has a worse debt/assets ratio than last year.
2.2 Solvency
FTS-PR-F has an Altman-Z score of 0.51. This is a bad value and indicates that FTS-PR-F is not financially healthy and even has some risk of bankruptcy.
FTS-PR-F has a Altman-Z score (0.51) which is in line with its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that FTS-PR-F has dependencies on debt financing.
FTS-PR-F has a Debt to Equity ratio of 1.37. This is in the better half of the industry: FTS-PR-F outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.51 |
ROIC/WACC0.86
WACC4.71%
2.3 Liquidity
FTS-PR-F has a Current Ratio of 0.76. 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 Current ratio of 0.76. This is in the better half of the industry: FTS-PR-F outperforms 78.95% of its industry peers.
FTS-PR-F has a Quick Ratio of 0.76. 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.
Looking at the Quick ratio, with a value of 0.63, FTS-PR-F is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.72% over the past year.
The Earnings Per Share has been growing slightly by 5.08% on average over the past years.
Looking at the last year, FTS-PR-F shows a small growth in Revenue. The Revenue has grown by 3.64% in the last year.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)7.72%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%7.53%
Revenue 1Y (TTM)3.64%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
3.2 Future
Based on estimates for the next years, FTS-PR-F will show a small growth in Earnings Per Share. The EPS will grow by 5.31% on average per year.
Based on estimates for the next years, FTS-PR-F will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y3.02%
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 6.65, which indicates a rather cheap valuation of FTS-PR-F.
FTS-PR-F's Price/Earnings ratio is a bit cheaper when compared to the industry. FTS-PR-F is cheaper than 63.16% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, FTS-PR-F is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.22, the valuation of FTS-PR-F can be described as very cheap.
Based on the Price/Forward Earnings ratio, FTS-PR-F is valued a bit cheaper than 63.16% of the companies in the same industry.
FTS-PR-F's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 6.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS-PR-F is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.41 |
4.3 Compensation for Growth
The 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)1.33
PEG (5Y)1.31
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.14%, FTS-PR-F is a good candidate for dividend investing.
FTS-PR-F's Dividend Yield is a higher than the industry average which is at 6.57.
FTS-PR-F's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
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 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 Years0
Div Non Decr Years18
5.3 Sustainability
50.67% 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.
DP50.67%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS-PR-F (7/18/2025, 7:00:00 PM)
22.28
+0.08 (+0.36%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.26%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap11.22B
Analysts54.17
Price Target23.5 (5.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.67%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.44%
Min EPS beat(2)1.1%
Max EPS beat(2)1.78%
EPS beat(4)4
Avg EPS beat(4)1.78%
Min EPS beat(4)1.1%
Max EPS beat(4)2.52%
EPS beat(8)7
Avg EPS beat(8)1.67%
EPS beat(12)10
Avg EPS beat(12)1.87%
EPS beat(16)10
Avg EPS beat(16)0.11%
Revenue beat(2)0
Avg Revenue beat(2)-5.78%
Min Revenue beat(2)-11.44%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)-0.12%
Revenue beat(8)0
Avg Revenue beat(8)-5.1%
Revenue beat(12)4
Avg Revenue beat(12)0.41%
Revenue beat(16)8
Avg Revenue beat(16)1.55%
PT rev (1m)3.54%
PT rev (3m)4.33%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 6.22 | ||
| P/S | 0.96 | ||
| P/FCF | N/A | ||
| P/OCF | 2.59 | ||
| P/B | 0.46 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 8.41 |
EPS(TTM)3.35
EY15.04%
EPS(NY)3.58
Fwd EY16.07%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)8.59
OCFY38.56%
SpS23.29
BVpS47.92
TBVpS18.54
PEG (NY)1.33
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.82% | ||
| ROCE | 4.86% | ||
| ROIC | 4.04% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 5.19% | ||
| OM | 28.73% | ||
| PM (TTM) | 14.03% | ||
| GM | 72.03% | ||
| 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 | 1.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 285.98% | ||
| Cap/Sales | 48.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.51 |
F-Score5
WACC4.71%
ROIC/WACC0.86
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)7.72%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%7.53%
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue 1Y (TTM)3.64%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y3.02%
EBIT growth 1Y7.64%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y16.93%
FCF growth 1Y-81.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.24%
OCF growth 3Y10.12%
OCF growth 5Y7.71%