FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FTS-PR-G - CA3495538348
24.93 CAD
+0.03 (+0.12%)
Overall FTS-PR-G gets a fundamental rating of 3 out of 10. We evaluated FTS-PR-G against 18 industry peers in the Electric Utilities industry. While FTS-PR-G is still in line with the averages on profitability rating, there are concerns on its financial health. FTS-PR-G is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year FTS-PR-G was profitable.
- In the past year FTS-PR-G had a positive cash flow from operations.
- Each year in the past 5 years FTS-PR-G has been profitable.
- In the past 5 years FTS-PR-G always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.27%, FTS-PR-G is doing worse than 88.89% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 6.97%, FTS-PR-G is doing worse than 88.89% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.20%, FTS-PR-G is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for FTS-PR-G is in line with the industry average of 4.03%.
- The last Return On Invested Capital (4.20%) for FTS-PR-G 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
- With a Profit Margin value of 14.02%, FTS-PR-G perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
- In the last couple of years the Profit Margin of FTS-PR-G has declined.
- FTS-PR-G has a better Operating Margin (28.97%) than 66.67% of its industry peers.
- FTS-PR-G's Operating Margin has been stable in the last couple of years.
- FTS-PR-G has a Gross Margin of 72.57%. This is in the better half of the industry: FTS-PR-G outperforms 66.67% of its industry peers.
- In the last couple of years the Gross Margin of FTS-PR-G 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
- FTS-PR-G has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- FTS-PR-G has more shares outstanding than it did 1 year ago.
- FTS-PR-G has more shares outstanding than it did 5 years ago.
- FTS-PR-G has a worse debt/assets ratio than last year.
2.2 Solvency
- FTS-PR-G has an Altman-Z score of 0.53. This is a bad value and indicates that FTS-PR-G is not financially healthy and even has some risk of bankruptcy.
- FTS-PR-G has a better Altman-Z score (0.53) than 77.78% of its industry peers.
- FTS-PR-G has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.35, FTS-PR-G is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.53 |
ROIC/WACC0.85
WACC4.94%
2.3 Liquidity
- A Current Ratio of 0.66 indicates that FTS-PR-G may have some problems paying its short term obligations.
- FTS-PR-G's Current ratio of 0.66 is on the low side compared to the rest of the industry. FTS-PR-G is outperformed by 83.33% of its industry peers.
- A Quick Ratio of 0.54 indicates that FTS-PR-G may have some problems paying its short term obligations.
- FTS-PR-G's Quick ratio of 0.54 is on the low side compared to the rest of the industry. FTS-PR-G is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
- FTS-PR-G shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.26%.
- FTS-PR-G 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.
- FTS-PR-G shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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-PR-G is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.03% yearly.
- FTS-PR-G is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.80% yearly.
EPS Next Y7.47%
EPS Next 2Y5.33%
EPS Next 3Y5.59%
EPS Next 5Y6.03%
Revenue Next Year7.37%
Revenue Next 2Y6.09%
Revenue Next 3Y7.06%
Revenue Next 5Y3.8%
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.
- 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
- Based on the Price/Earnings ratio of 7.33, the valuation of FTS-PR-G can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of FTS-PR-G indicates a slightly more expensive valuation: FTS-PR-G is more expensive than 72.22% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, FTS-PR-G is valued rather cheaply.
- A Price/Forward Earnings ratio of 6.85 indicates a rather cheap valuation of FTS-PR-G.
- FTS-PR-G's Price/Forward Earnings is on the same level as the industry average.
- FTS-PR-G's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.33 | ||
| Fwd PE | 6.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FTS-PR-G is valued a bit more expensive than the industry average as 72.22% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.37 |
4.3 Compensation for Growth
- FTS-PR-G's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.98
PEG (5Y)1.44
EPS Next 2Y5.33%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
- FTS-PR-G has a Yearly Dividend Yield of 3.55%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.93, FTS-PR-G has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, FTS-PR-G pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
- The dividend of FTS-PR-G has a limited annual growth rate of 5.61%.
- FTS-PR-G has been paying a dividend for at least 10 years, so it has a reliable track record.
- FTS-PR-G 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 Years2
Div Non Decr Years10
5.3 Sustainability
- FTS-PR-G pays out 50.83% of its income as dividend. This is a bit on the high side, but may be sustainable.
- FTS-PR-G's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP50.83%
EPS Next 2Y5.33%
EPS Next 3Y5.59%
FORTIS INC - FTSCN 6.123 PERP / FTS-PR-G.CA FAQ
What is the ChartMill fundamental rating of FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to FTS-PR-G.CA.
What is the valuation status for FTS-PR-G stock?
ChartMill assigns a valuation rating of 4 / 10 to FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA). This can be considered as Fairly Valued.
How profitable is FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA) stock?
FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA) has a profitability rating of 5 / 10.
What is the financial health of FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA) stock?
The financial health rating of FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA) is 1 / 10.
Can you provide the expected EPS growth for FTS-PR-G stock?
The Earnings per Share (EPS) of FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA) is expected to grow by 7.47% in the next year.