FORTIS INC - FTSCN 6.123 PERP (FTS-PR-G.CA) Stock Fundamental Analysis
TSX:FTS-PR-G - Toronto Stock Exchange - CA3495538348 - Currency: CAD
FTS-PR-G gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 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 has a valuation in line with the averages, but it does not seem to be growing. FTS-PR-G also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FTS-PR-G had positive earnings in the past year.
FTS-PR-G had a positive operating cash flow in the past year.
In the past 5 years FTS-PR-G has always been profitable.
Each year in the past 5 years FTS-PR-G had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FTS-PR-G (2.20%) is better than 63.16% of its industry peers.
The Return On Equity of FTS-PR-G (6.82%) is worse than 84.21% of its industry peers.
FTS-PR-G has a Return On Invested Capital of 4.04%. This is in the better half of the industry: FTS-PR-G outperforms 68.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTS-PR-G 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-G has a better Profit Margin (14.03%) than 68.42% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-G has declined.
With a decent Operating Margin value of 28.73%, FTS-PR-G is doing good in the industry, outperforming 73.68% of the companies in the same industry.
FTS-PR-G'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-G is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
FTS-PR-G's Gross Margin has been stable in the last couple of years.
| 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-G is destroying value.
The number of shares outstanding for FTS-PR-G has been increased compared to 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
Based on the Altman-Z score of 0.51, we must say that FTS-PR-G is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FTS-PR-G (0.51) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that FTS-PR-G has dependencies on debt financing.
FTS-PR-G has a Debt to Equity ratio of 1.37. This is in the better half of the industry: FTS-PR-G outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.51 |
ROIC/WACC0.62
WACC6.55%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FTS-PR-G may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, FTS-PR-G is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
FTS-PR-G has a Quick Ratio of 0.76. This is a bad value and indicates that FTS-PR-G is not financially healthy enough and could expect problems in meeting its short term obligations.
FTS-PR-G has a better Quick ratio (0.63) than 68.42% 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-G shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
FTS-PR-G shows a small growth in Revenue. In the last year, the Revenue has grown by 3.64%.
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)7.72%
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
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
FTS-PR-G is valuated cheaply with a Price/Earnings ratio of 6.88.
FTS-PR-G's Price/Earnings is on the same level as the industry average.
FTS-PR-G's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 6.44 indicates a rather cheap valuation of FTS-PR-G.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTS-PR-G is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.90. FTS-PR-G is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
68.42% of the companies in the same industry are cheaper than FTS-PR-G, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.48 |
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-G may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)1.35
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS-PR-G has a Yearly Dividend Yield of 8.08%, which is a nice return.
Compared to an average industry Dividend Yield of 6.61, FTS-PR-G pays a better dividend. On top of this FTS-PR-G pays more dividend than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, FTS-PR-G pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
5.2 History
The dividend of FTS-PR-G has a limited annual growth rate of 5.61%.
FTS-PR-G has paid a dividend for at least 10 years, which is a reliable track record.
FTS-PR-G has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.61%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
FTS-PR-G 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-G 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-G (7/3/2025, 7:00:00 PM)
23.06
-0.02 (-0.09%)
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 Cap11.57B
Analysts53.04
Price Target24.75 (7.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.67%
Div Incr Years2
Div Non Decr Years10
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)10.99%
PT rev (3m)11.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 6.44 | ||
| P/S | 0.99 | ||
| P/FCF | N/A | ||
| P/OCF | 2.67 | ||
| P/B | 0.48 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)3.35
EY14.53%
EPS(NY)3.58
Fwd EY15.53%
FCF(TTM)-2.63
FCFYN/A
OCF(TTM)8.63
OCFY37.41%
SpS23.38
BVpS48.11
TBVpS18.62
PEG (NY)1.37
PEG (5Y)1.35
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
WACC6.55%
ROIC/WACC0.62
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%