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. While FTS-PR-F is still in line with the averages on profitability rating, there are concerns on its financial health. FTS-PR-F is valued correctly, but it does not seem to be growing. FTS-PR-F also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FTS-PR-F was profitable.
In the past year FTS-PR-F had a positive cash flow from operations.
FTS-PR-F had positive earnings in each of the past 5 years.
In the past 5 years FTS-PR-F always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FTS-PR-F (2.20%) is better than 68.42% of its industry peers.
The Return On Equity of FTS-PR-F (6.82%) is worse than 78.95% of its industry peers.
The Return On Invested Capital of FTS-PR-F (4.04%) is better than 73.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
FTS-PR-F has a Profit Margin of 14.03%. This is in the better half of the industry: FTS-PR-F outperforms 73.68% of its industry peers.
FTS-PR-F's Profit Margin has declined in the last couple of years.
FTS-PR-F has a better Operating Margin (28.73%) than 78.95% of its industry peers.
In the last couple of years the Operating Margin of FTS-PR-F has remained more or less at the same level.
FTS-PR-F's Gross Margin of 72.03% is fine compared to the rest of the industry. FTS-PR-F outperforms 78.95% of its industry peers.
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
FTS-PR-F has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FTS-PR-F has more shares outstanding
FTS-PR-F has more shares outstanding than it did 5 years ago.
FTS-PR-F has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.51, we must say that FTS-PR-F is in the distress zone and 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.
Looking at the Debt to Equity ratio, with a value of 1.37, FTS-PR-F is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.51 |
ROIC/WACC0.86
WACC4.72%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FTS-PR-F may have some problems paying its short term obligations.
FTS-PR-F's Current ratio of 0.76 is fine compared to the rest of the industry. FTS-PR-F outperforms 73.68% of its industry peers.
A Quick Ratio of 0.63 indicates that FTS-PR-F may have some problems paying its short term obligations.
FTS-PR-F's Quick ratio of 0.63 is fine compared to the rest of the industry. FTS-PR-F outperforms 73.68% of its industry peers.
| 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.
Measured over the past 5 years, FTS-PR-F shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
FTS-PR-F shows a small growth in Revenue. In the last year, the Revenue has grown by 3.64%.
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)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
The Earnings Per Share is expected to grow by 5.31% on average over the next years.
The Revenue is expected to grow by 3.02% on average over the next years.
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
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
FTS-PR-F is valuated cheaply with a Price/Earnings ratio of 6.65.
FTS-PR-F's Price/Earnings is on the same level as the industry average.
FTS-PR-F's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
With a Price/Forward Earnings ratio of 6.22, the valuation of FTS-PR-F can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTS-PR-F is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FTS-PR-F to the average of the S&P500 Index (21.74), we can say FTS-PR-F is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 6.22 |
4.2 Price Multiples
63.16% of the companies in the same industry are cheaper than FTS-PR-F, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.41 |
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.
FTS-PR-F has a very decent profitability rating, which 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
FTS-PR-F has a Yearly Dividend Yield of 8.04%, which is a nice return.
FTS-PR-F's Dividend Yield is rather good when compared to the industry average which is at 6.59. FTS-PR-F pays more dividend than 84.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, FTS-PR-F pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.04% |
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
FTS-PR-F pays out 50.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-F is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.67%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS-PR-F (7/7/2025, 7:00:00 PM)
22.28
-0.05 (-0.22%)
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 Cap11.18B
Analysts54.17
Price Target23.5 (5.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.04% |
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)12.44%
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 | 0.95 | ||
| P/FCF | N/A | ||
| P/OCF | 2.58 | ||
| 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)-2.63
FCFYN/A
OCF(TTM)8.63
OCFY38.72%
SpS23.38
BVpS48.11
TBVpS18.62
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
WACC4.72%
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%