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. FTS-PR-G has a medium profitability rating, but doesn't score so well on its financial health evaluation. FTS-PR-G has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FTS-PR-G had positive earnings in the past year.
In the past year FTS-PR-G had a positive cash flow from operations.
In the past 5 years FTS-PR-G has always 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 2.19%, FTS-PR-G is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
FTS-PR-G's Return On Equity of 6.75% is fine compared to the rest of the industry. FTS-PR-G outperforms 63.16% of its industry peers.
With a decent Return On Invested Capital value of 4.06%, FTS-PR-G is doing good in the industry, outperforming 68.42% 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 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
With a decent Profit Margin value of 13.96%, FTS-PR-G is doing good in the industry, outperforming 68.42% of the companies in the same industry.
In the last couple of years the Profit Margin of FTS-PR-G has declined.
The Operating Margin of FTS-PR-G (28.61%) is better than 73.68% of its industry peers.
FTS-PR-G's Operating Margin has been stable in the last couple of years.
FTS-PR-G's Gross Margin of 71.77% is fine compared to the rest of the industry. FTS-PR-G outperforms 73.68% of its industry peers.
FTS-PR-G'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-G is destroying value.
Compared to 1 year ago, FTS-PR-G has more shares outstanding
FTS-PR-G has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FTS-PR-G is higher compared to a year ago.
2.2 Solvency
FTS-PR-G has an Altman-Z score of 0.49. This is a bad value and indicates that FTS-PR-G is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FTS-PR-G (0.49) is better than 63.16% of its industry peers.
FTS-PR-G has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
FTS-PR-G's Debt to Equity ratio of 1.33 is fine compared to the rest of the industry. FTS-PR-G outperforms 68.42% 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
A Current Ratio of 0.63 indicates that FTS-PR-G may have some problems paying its short term obligations.
With a Current ratio value of 0.63, FTS-PR-G is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
A Quick Ratio of 0.52 indicates that FTS-PR-G may have some problems paying its short term obligations.
FTS-PR-G's Quick ratio of 0.52 is on the low side compared to the rest of the industry. FTS-PR-G is outperformed by 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
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 6.37%.
FTS-PR-G shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.13% yearly.
The Revenue has decreased by -0.08% in the past year.
The Revenue has been growing slightly by 5.55% on average over the past years.
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
FTS-PR-G is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.80% yearly.
Based on estimates for the next years, FTS-PR-G 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 6.71, which indicates a rather cheap valuation of FTS-PR-G.
73.68% of the companies in the same industry are more expensive than FTS-PR-G, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, FTS-PR-G is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.42, the valuation of FTS-PR-G can be described as very cheap.
FTS-PR-G's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. FTS-PR-G is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.71 | ||
| Fwd PE | 6.42 |
4.2 Price Multiples
FTS-PR-G's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
FTS-PR-G'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-G may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)1.31
EPS Next 2Y4.57%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.94%, FTS-PR-G has a reasonable but not impressive dividend return.
FTS-PR-G's Dividend Yield is slightly below the industry average, which is at 4.45.
Compared to an average S&P500 Dividend Yield of 2.33, FTS-PR-G pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 50.93% 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.
DP50.93%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
TSX:FTS-PR-G (3/7/2025, 7:00:00 PM)
22.09
-0.19 (-0.85%)
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 Cap11.03B
Analysts51.43
Price Target22.66 (2.58%)
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 Years2
Div Non Decr Years10
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)-0.36%
PT rev (3m)1.21%
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 | 6.71 | ||
| Fwd PE | 6.42 | ||
| P/S | 0.96 | ||
| P/FCF | N/A | ||
| P/OCF | 2.84 | ||
| P/B | 0.46 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)3.29
EY14.89%
EPS(NY)3.44
Fwd EY15.57%
FCF(TTM)-2.68
FCFYN/A
OCF(TTM)7.77
OCFY35.2%
SpS23.05
BVpS47.68
TBVpS18.1
PEG (NY)1.44
PEG (5Y)1.31
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%